Introduction
Employment laws, also known as labor laws (or industrial laws), is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations1. For several years the foundation of employment statutes and legislatures have remained static, however with recent developments in the field of technology and changing societal expectations, this might not be the case for much longer. The rapid evolution of technology, impact of COVID-19 pandemic, and shifting societal expectations are all contributing to transforming how employment law is defined and regulated. These changes are reshaping the legal landscape while redefining employer-employee relationships. Through the purpose of this article, we will be exploring the driving forces behind these global revisions in employment law, the evolution of work, and what it could potentially mean for the future.
Why are Employment Law Statutes being Revised?
1. Technological Advancements
With the recent advancements in the field of Artificial Intelligence and the development of more efficient automative machinery, humanity has officially entered the Fifth Industrial Revolution. This trend sees humans working alongside advanced technology and advanced AI2, something which is only going to grow further in the expected future. However as innovative, efficient, and convenient this new industrial revolution may be, it often results in the elimination of certain jobs; but in place creates new ones.
The introduction of computer intelligence into the workforce necessitates updates to employment laws to protect the workers displaced through the introduction of technology and to regulate the new types of jobs that are being created. Furthermore, laws need to be created that ensure adequate use of these new technologies and to ensure they would not be harming the society or the communities, in the factory's vicinity, in any manner. As human laws do not apply to robots, there would also be a need to implement certain legislatures which ensure compliance with policies and procedures to eliminate any attempt at fraudulent activities, using AI as a shield. This can be done by holding directors liable for any sort of malpractice inside the corporation.
Furthermore, in our modern-day society, the concept of gig economy has started to become more prevalent, as it focuses on flexible, temporary, and freelancing jobs. Organizations hire independent workers for short-term commitments where the employees do not earn paid holiday or sick leave, can experience fluctuating wages, and are allowed to decide what times they wish to work3. Digital platforms such as- Zomato, Lyft, and Swiggy create freelance marketplaces where the beforementioned lack of benefits and protections may create issues for the employees. Legal reforms are hence required to protect the basics of any employee- setting a minimum wage, offering healthcare benefits, and other forms of social security.
2. COVID-19 and its impact
COVID-19 pandemic forced a massive shift towards remote work, highlighting the inadequacies of existing labor laws when addressing issues in work-from-home scenarios. The issues of how a company or its managers could monitor their employees through their computer screens? Would this even be an ethical practice? Such questions gave rise to revisions in data privacy and cybersecurity laws which were set in place to protect both employers and employees that were working in a remote setting.
Similarly, health and safety regulations have also been updated; the importance of which was underscored by the pandemic. Governments around the globe are revising legislatures to ensure companies are quicker and more efficient with adapting to health-related emergencies- this includes paid sick leaves, stronger emphasis on health protocols, and overall well-being of employees.
"Antidiscrimination laws have been directly affected, including an unprecedented increase in the number of religious accommodation requests and lawsuits brought under Title VII of the Civil Rights Act and similar state and local statutes."4, Scott T. Allen of Foley & Lardner LLP states. A significant shift was development of remote work /work from home policies. Before COVID-19, courts generally viewed requests for remote work with skepticism, often seeing them as unreasonable or too burdensome for employers. However, after the widespread adoption of remote work during the pandemic, courts are now more likely to view it as a reasonable and viable option for accommodation.
3. Changing Workforce Demographics
The new millennia brought diversity to the workplace with the introduction of better laws that protected workers from discrimination based on any physical or mental characteristics. With this more diverse workforce, there is a growing need to create an inclusive work environment that respects different ages, genders, races, and cultures. Even in 2024, the time of this article's publication, employment laws are being consistently updated to prevent discrimination and promote inclusion in the workplace, ensuring equal opportunities for all.
Furthermore, there is an increase in the number of older employees in the workplace, with these older workers being more dependable, hard-working, and more experienced. However, they are often discriminated against and are easily substituted for younger workers since they are more physically efficient and can easily multitask, especially in jobs that require workers to be on their feet, such as fast-food chains. Older generations wish to remain employed because they either do not have enough funds to retire or because they have a desire to remain occupied even in their old age5; something companies do not take into consideration when replacing them with their younger counterparts. To ensure these workers' rights are protected, governments need to revise the retirement age, pension benefits, and legislatures against age discrimination to accommodate an aging population.
4. Increased attention on Employee well-being and work-life balance.
There has been a growing awareness of mental health and the importance of work-life balance. Older, stricter laws are being updated to include mental health days, flexible work hours, and efforts to prevent burnout, as healthier employees lead to higher satisfaction for both them and their employers. Corporates are growingly recognizing the aspect of 'duty of care" which means that they feel responsible to support health, safety and well-being of employees. Mental health is being treated more seriously, with employers now expected to handle it with the same care and attention as they would a physical illness.
To support working parents, many countries are also expanding their parental leave policies, mandating paid leaves for both parents and introducing laws to support childcare and family responsibilities. In India, there are currently no regulations that mandate paternity leave in the private sector and central government employees are only allowed to take up to 15 days of paternity leave, either before the child is born or six months of the child's birth, according to the Central Civil Services (Leave) Rules, 19726.
How is the World Changing?
1. Workforce Flexibility
Traditional 9 to 5 office jobs have become less common as employees are more inclined towards seeking more flexible work arrangements. This could include remote work, part-time work, or even different working hours. Many people and/or companies may also opt for job-sharing- a concept where two part-time employees share the work that would normally be performed by a full-time employee. For the companies, this leads to a net reduction in per-employee income7.
These jobs are perfect for working parents, caregivers, or those individuals that are pursuing education or are simply looking for a side job. Employment laws are being revised to accommodate these new work models, ensuring that employees retain rights and benefits even in non-traditional roles.
With a recent rise in freelancing and an expansion of the gig-economy, there have also been concerns about job security, benefits, and worker exploitation, especially in economies like India where gig-economy workers are neither considered full-time employees nor are they considered freelancers, trapping them in a frustrating purgatory. As a result the central and state governments are struggling to fit them in existing policy frameworks which essentially leaves them without rights8. Hence legal reforms are prompted to ensure fair treatment and protections to all gig-workers and freelancers.
2. Digital Transformation
Technology is ubiquitous in our modern world; digital technology especially is permeating nearly every aspect of life. From cloud computing to mobile devices, digital tools have transformed how we communicate, work, and even conduct business. In this digital economy, businesses operate primarily online, driving the need for new regulations around data privacy, cybersecurity, and workers' rights in digital workspaces.
Traditional jobs have been replaced by roles in logistics, digital marketing, and consumer service for online platforms. Even grocery shopping is becoming increasingly undemanding as you may take the aid of certain mobile applications, such as- Zepto or BlinkIt, to have whatever you desire delivered to your doorstep as soon as possible. However, as these new industries grow there is a need for employment laws to address issues specific to digital work environments, such as intellectual property rights, online harassment, and digital labor rights.
3. Changing Social and Economic Expectations
As employee well-being becomes increasingly important—covering mental health, work-life balance, and job satisfaction—companies are now expected to do more than just chase profits. They're being called on to take responsibility for their impact on society and the environment. This means offering mental health support, flexible work options, and initiatives that enhance overall well-being, all while acting ethically and sustainably. Employment laws are catching up to these expectations, introducing new rules on corporate governance, environmental responsibility, and social justice in the workplace.
Additionally, growing economic inequality and stagnant wages have put corporate pay practices under the spotlight, leading to demands for fairer compensation. Governments are responding by enacting laws to close wage gaps, increase minimum wages, and ensure workers get a fair share of the profits. These changes are geared towards building a more equitable economy where workers are properly rewarded for their contributions.
How Will this Change the World?
1. More Inclusive Workspaces
Based on the current status of statute changes, employment laws continue to evolve to promote inclusivity. In the future we should expect to see workplaces becoming more diverse, with a stronger emphasis on equality. This may include better protections against discrimination, more opportunities for marginalized groups, and stricter enforcement of equal pay for equal work. Companies will need to prioritize Diversity, Equity, and Inclusion initiatives, which could lead to more innovative and dynamic workplaces that benefit from a wider range of perspectives and experiences9.
Future employment laws may also provide more comprehensive protections for certain workers, especially those in the gig economy, temporary positions, and low-wage jobs. This could involve extending benefits like health insurance, retirement savings, and unemployment protection to these workers, ensuring they have the same level of security as traditional employees. This, however, doesn't seem to be a possibility for societies like India, based on the recent developments.
2. Flexible Work Environments
As remote work becomes more normalized, especially since the COVID-19 pandemic, employment laws will continue to evolve to support these flexible arrangements. This could lead to a future where remote and hybrid work models are the norm rather than the exception. Companies would be required to adapt their operations, communication, and management practices to accommodate a distributed workforce, which could lead to greater work-life balance for employees and potentially higher productivity.
Employment laws have already begun to support flexible working hours, parental leaves, mental health days, and other measures designed to promote work-life balance. In the future these regulations are expected to be ameliorated further, which could potentially result in companies becoming more attuned to the needs of their employees, reducing burnout, improving job satisfaction, and increasing employee retention.
3. Adapting to Technology
As AI and automation keep changing the job market, we'll likely see new laws aimed at tackling ethical issues, data privacy, and the risk of job loss. These laws might push for more training and education to help workers adapt to a tech-driven economy. Companies will also need to consider the ethical side of using AI and automation, making sure these tools are used in a fair and responsible way.
As more people work remotely and depend on digital platforms, the importance of data privacy and cybersecurity continues to grow. Future employment laws will likely implement stricter regulations to safeguard employee data, requiring companies to enhance their security practices and be transparent about how they collect, store, and use personal information.
Anhad Law Perspective
The rapid evolution of technology, shifting societal expectations, and the lasting impact of COVID-19 has led to significant changes in employment laws worldwide. As industries adapt to digital transformation, AI, and remote work, employment laws would continue to evolve to address emerging issues such as data privacy, workers' rights, and ethical technology use, etc. These changes are reshaping modern workplaces; fostering more inclusive and flexible environments, and ensuring that workers are better protected in an increasingly interconnected, technological economy. The future of employment law promises to be more adaptive, equitable, and focused on the well-being of employees- setting new standards for employer-employee relationship in a rapidly changing world.
Footnotes
1. NCIB, LABOUR LAWS IN INDIA (2021) pg. 3.
2. "What is the 'Fifth Industrial Revolution,' Which Will Deepen the Integration Between People and Technology? | Murata Manufacturing Articles", online: Murata Manufacturing Articles ( https://article.murata.com/en-sg/article/what-is-the-fifth-industrial-revolution).
3. Lutkevich, Ben & Alexander S Gillis, "gig economy", (2 February 2022), online: WhatIs (https://www.techtarget.com/whatis/definition/gig-economy).
4. Allen, Scott T. & Mary C. Cravatta, "COVID's Impact On Employment Law Is Still Felt 3 Years Later | Foley & Lardner LLP", (18 June 2024), online: Foley & Lardner LLP. ( https://www.foley.com/insights/publications/2023/03/covid-impact-employment-law-felt-3-years-later/).
5. Fry, Richard & Dana Braga, "1. The growth of the older workforce", (14 April 2024), online: Pew Research Center ( https://www.pewresearch.org/social-trends/2023/12/14/the-growth-of-the-older-workforce/).
6. Kale, Sanskruti Madhukar, "Lack of Paternity Leave Negating the Purpose of Maternity Leave", Live Law (2 December 2023), online: ( https://www.livelaw.in/lawschoolcolumn/lack-of-paternity-leave-is-negating-the-purpose-of-maternity-leave-243528 ).
7. Lowe-MacAuley, Kimberli, "What Is Job Sharing? A Guide to How Job Sharing Works", (14 March 2024), online: FlexJobs Job Search Tips and Blog (https://www.flexjobs.com/blog/post/what-is-job-sharing/).
8. Singh, Manpreet, "India's Gig Economy: A Legal Minefield" (2024) Employment Laws, online: ( https://articles.manupatra.com/article-details/India-s-Gig-Economy-A-Legal-Minefield).
9. Wong, Kellie, "Diversity and inclusion in the workplace: Benefits and challenges", (21 August 2024), online: Achievers (https://www.achievers.com/blog/diversity-and-inclusion/).
Originally published by Lexology, September 16 2024.
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