Europe: Employment and HR

The UK government has introduced draft legislation enabling defined benefit pension schemes to release surplus funds directly to members from April 2027, while HMRC updates to VAT guidance create uncertainty around input tax recovery for scheme administration costs. Meanwhile, new inheritance tax information-sharing requirements take effect, and the Pensions Regulator sets out its five-year strategic priorities focused on innovation, value for money, and supporting UK economic growth.

The EU Platform Work Directive introduces a rebuttable presumption of employment status for gig economy workers and stricter requirements for automated monitoring systems. With Member States facing a December 2026 transposition deadline, implementation approaches vary significantly across Europe, creating uncertainty for digital labour platforms about compliance requirements and potential misclassification risks.

Remote and hybrid work arrangements in Malta carry significant legal implications that extend far beyond operational convenience. Employers must navigate a complex web of employment protections, working-time regulations, data protection requirements, anti-discrimination duties, and cross-border tax considerations. Without proper contractual frameworks and compliance procedures, organizations risk employment claims, discrimination awards, regulatory enforcement action, and unexpected permanent establishment