When the government of Denmark announced in October that bereaved parents would receive 12 weeks of paid employee leave after the loss of a spouse or partner (provided they have minor children together), it marked another entry in the increasingly complex global tapestry of employee leave entitlements impacting multinational employers.
The Danish measure, effective January 2026, is just one of dozens of leave-related changes set to take effect worldwide in the coming months, according to Mercer’s recent Global Legislative Update.
From Greece’s sweeping labor reforms to Poland’s expanded definition of qualifying service time, employers operating across borders face mounting challenges in tracking and complying with an ever-shifting patchwork of local requirements.
“The variation is staggering,” the report notes, highlighting how jurisdictions are moving in entirely different directions. For instance, while Belgium is closing its early retirement scheme to new entrants, other countries are expanding such programs. Examples include Romania, which has introduced tiered sick leave payments based on duration, and Slovakia, where employers are now required to pay for 14 calendar days of sick leave instead of the previous 10.
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When ‘family’ means different things
One of the most vexing challenges is the expanding definition of family eligible for leave. California’s recently expanded law adds “designated persons” to its family care leave eligibility. These are defined as individuals related by blood or whose relationship is equivalent to family.
Greece’s reforms extend maternity leave and benefits to foster mothers and women who adopt children up to age 8. Poland now includes work performed outside traditional employment contracts, such as self-employment and service contracts, when determining leave entitlements.
“These definitional changes create real operational challenges,” the report observes, especially for companies using centralized HRIS systems that may not accommodate such regional variations.
The retroactive compliance trap
Some legislative changes apply retroactively or take effect with minimal notice, according to Mercer. “Employers can’t simply wait for Jan. 1 to update their policies,” the report emphasizes. Tracking these staggered effective dates demands constant vigilance.
For example, Peru’s reformed pension system regulations, published in September, will apply retroactively to those becoming eligible from June 2027. Greece’s labor law changes took effect immediately upon publication in October, with various provisions having different effective dates. Slovakia’s changes to public holidays began in 2025, with other new rules taking effect in 2026 or 2028. Romania’s expanded health insurance contributions started in September for some groups but won’t apply to certain pension recipients until 2027.
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Minimum wage ripple effects
The Mercer research points out that at least eight countries have announced minimum wage increases effective in January, including Croatia (€1,050 monthly, up from €970), Lithuania (€1,153, up from €1,038) and Slovakia (€915, up from €816).
These adjustments affect more than just base pay. They cascade into leave calculations in many jurisdictions where leave payments are tied to the minimum wage.
In the U.S., for example, Connecticut’s maximum paid family leave benefit is 60 times the state minimum wage. When that wage increased, the maximum weekly benefit jumped from $981 to $1,016.40.
The U.S. state-by-state maze
U.S. employers face their own compliance maze. “The lack of federal standardization means companies operating in multiple states must manage dozens of different leave programs,” the report notes.
Mercer finds more than a third of states (and some cities) now have some form of accrued paid leave requirement, each with different rules for accrual, carryover, use and payouts. Examples include the jurisdiction of New York City, which recently added permitted uses to its health and safety leave act, while California expanded paid sick leave coverage.
Technology is both a solution and a challenge
The proliferation of leave types is driving employers toward more sophisticated HRIS platforms capable of handling jurisdiction-specific rules. But technology brings fresh hurdles: Systems must accommodate varying family definitions, accrual methods, calculation bases and effective dates.
Greece’s new Digital Work Card system, which Mercer cites as an example, requires specific protocols for recording parental leave, working time changes and overtime. These are procedurally different from systems elsewhere in the EU, according to Mercer. In China, regional social insurance thresholds change at different times throughout the year.
Looking ahead: More complexity expected
The trend shows no sign of abating, according to Mercer. The EU’s revised Works Council Directive, approved in October, gives member states until late 2027 to implement new requirements in national law. The U.K.’s Employment Rights Bill currently has four open consultations on bereavement leave, dismissal protections, union rights and workplace access.
Additionally, several countries are considering “right to disconnect” policies, flexible work arrangements and expanded parental leave, each with distinct local features.
These are only some highlights. For the full scope of leave and other new regulations, check out the full report: Mercer’s Global Legislative Update.
What should HR leaders do about employee leave now?
To stay on top of this shifting landscape, Mercer recommends four actions:
- Conduct quarterly (not annual) compliance audits for each operating location to keep up with the pace of change.
- Invest in technology platforms specifically designed for complex, jurisdiction-specific rules. Avoid forcing local variations into generic solutions.
- Build strong relationships with local legal experts to flag changes before they take effect. Mercer emphasizes: “Mercer is not a law firm and therefore cannot provide legal advice. Please consult legal counsel before taking any actions.”
- Maintain centralized, up-to-date documentation of all leave policies by location, clearly tracking effective dates, eligibility and calculation rules.
