The freelance workforce continues its global surge, pushing businesses and policymakers to redefine how independent work is regulated. As of 2024, approximately 73 million Americans were engaged in freelance or independent work, making up a significant share of the U.S. workforce, while similar trends continue to accelerate across Europe and other global markets. As more organizations rely on freelance and gig talent, keeping abreast of legal changes worldwide is crucial. New legislations and regulations slated for 2026 aim to clarify worker classification, extend protections, and impose obligations that will shape the freelance economy’s future.
In this article, we’ll explore the latest upcoming legal updates impacting freelancers and the organizations that engage them. From stricter employment classification tests to mandated contracts and benefits, these global shifts highlight the evolving landscape that businesses must navigate to remain compliant and competitive.
Key legal changes to watch in 2026
Recent and forthcoming legislative developments across the globe are introducing greater clarity, protection, and structure to freelance and gig work arrangements. Here are some of the most significant changes on the horizon:
Australia: New “Employee-Like” worker protections
Australia has launched a groundbreaking overhaul of gig economy laws. With the Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024, a new category of “employee-like” workers was introduced in August 2024. This law covers gig workers who rely on digital platforms (like rideshare and food delivery apps) for a substantial part of their income, extending to them basic protections without making them full employees. Under the new framework, the Fair Work Commission can set minimum standards for pay, conditions, and dispute resolution for these workers. Notably, since February 2025, platforms in Australia must also follow a Deactivation Code, requiring advance warning and fair process before cutting off a gig worker’s access to the app.
This reform aims to preserve flexibility while providing gig workers with fair pay floors, safer working conditions, and recourse against unjust terminations. It represents one of the first attempts by an OECD country to balance flexibility with fairness in the gig economy, and other nations (including the UK and New Zealand) are watching its implementation closely.
New Zealand: “Gateway Test” for contractor status
New Zealand’s Employment Relations Amendment Bill 2025, introduced in June 2025, is expected to pass into law by the end of the year and take effect in 2026.This test lays out four key criteria to definitively classify a worker as an independent contractor. If a working arrangement meets all the criteria, which include having a written agreement stating independent contractor status, freedom for the contractor to take on other work, control over their own schedule (or the right to subcontract), and protection from being terminated for refusing additional tasks, then the individual will be conclusively deemed a contractor. Failing any one criterion means reverting to the traditional multi-factor tests. The reform is aimed at preventing misclassification in industries reliant on gig and freelance labor.
Businesses will likely need to review and adjust their contractor agreements to ensure they meet the Gateway Test’s standards, such as allowing genuine independence and non-exclusivity. The Gateway Test would give New Zealand companies a more straightforward tool to determine employment status, reducing grey areas and legal risks in contractor engagements.
Singapore: The Platform Workers Act
Singapore has enacted the Platform Workers Act 2024, ushering in new protections for gig workers outside the traditional employment model. Effective 1 January 2025, this law gives platform-based drivers, couriers, and other gig workers core benefits and rights without changing their contractor status. Key provisions include granting these workers the right to collective bargaining and representation, coverage under work injury compensation, and, for Singaporean citizens and permanent residents, mandatory contributions to the Central Provident Fund (CPF). Platform companies must contribute to their workers’ CPF accounts (Singapore’s social security savings scheme for retirement, healthcare, and housing) by deducting a portion of earnings and matching it with an employer contribution. They are also required to provide insurance against workplace injuries. This Singaporean model boosts gig worker security (through benefits and financial safeguards) while keeping the workers officially self-employed, thus not triggering full employment rights.
Businesses operating digital platforms face greater compliance costs and record-keeping burdens under the new law, which aims to improve gig worker welfare and stability in a fast-growing segment of the workforce.
European Union: Presumption of employment for gig workers
Across Europe, a major legal development is the EU Platform Work Directive, which came into force at the end of 2024. This Directive targets the working conditions of gig-platform workers and introduces a rebuttable presumption of employment for certain platform-based roles. In essence, if a digital labor platform controls and supervises how work is performed, the default assumption will be that the workers are employees, not independent contractors. Platforms can rebut this presumption only if they can prove the absence of an employment relationship. The Directive also sets transparency and algorithmic accountability rules, for example, requiring disclosure about automated decision-making systems and banning certain high-risk AI practices in worker management. EU Member States have until 2 December 2026 to transpose this Directive into national law, meaning that over the next couple of years we will see countries like France, Germany, Spain, and others implement new rules aligning with these standards. This could lead to widespread reclassification of gig workers as employees in cases where platforms exert significant control (such as ride-hailing and food delivery apps).
For businesses, the EU Directive heralds a need to re-evaluate platform business models, adjust contracts, and increase transparency to comply with upcoming national laws, or potentially face legal challenges and a shift of gig workers into employee status.
United Kingdom: Protecting “Worker” rights and zero-hours staff
The UK is also poised to strengthen protections for those in precarious work. A wide-ranging Employment Rights Bill is expected to pass in 2025 (with provisions coming into effect in 2026) aimed at curbing the “one-sided flexibility” often associated with zero-hours contracts and gig work. One major element of the proposals is a requirement for employers to offer workers on zero-hours arrangements a guaranteed minimum number of hours, so that individuals have more certainty and income stability. This would rein in the practice of keeping workers on call with no assured work. Additionally, the government has signaled a commitment to review the employment status framework, potentially simplifying the current trio of “employee”, “worker”, and “self-employed” into a more straightforward dual category. The idea is to extend full employment protections to those currently classified as “workers”, who today get rights like minimum wage and holiday pay but lack others such as unfair dismissal protection or redundancy pay. If enacted, this reform could bring gig workers and other independent contractors under a broader umbrella of rights without making them traditional employees.
Companies operating in the UK will need to monitor these developments closely: from adjusting zero-hour contract practices to preparing for a possible shake-up in how they classify and afford rights to their freelance and contract workforce.
While the Autumn Budget doesn’t introduce new worker status legislation, it reinforces 2026 as a key year for upcoming employment reforms and confirms tax and NI policies that will shape contractor planning.
Read our full Autumn Budget breakdown for businesses and contractors here.
United States (California): Union rights for gig drivers
In the United States, federal action on gig workers has stalled, but states are taking bold steps. California, a bellwether in gig economy policy, has enacted a first-of-its-kind law allowing certain independent contractors to unionize. In October 2025, California passed AB 1340 – the Transportation Network Company (TNC) Drivers Labor Relations Act, which takes effect January 1, 2026. This law grants app-based rideshare drivers (who are classified as independent contractors under California’s Prop 22) the right to form unions, bargain collectively, and engage in concerted activities, all without changing their contractor status. The Act appoints the state Public Employment Relations Board (PERB) to oversee union elections, collective bargaining processes, and to handle unfair labor practice complaints in the rideshare sector. In practice, starting in 2026, rideshare companies like Uber and Lyft must provide lists of eligible drivers to PERB and potentially negotiate with driver organizations if they gain sufficient support. California’s approach is a novel work-around to federal labor law, enabling sector-wide (or “sectoral”) bargaining for gig workers at a state level. If it survives expected legal challenges (e.g. on whether it conflicts with the National Labor Relations Act), this could set a precedent for other jurisdictions to empower freelancers and gig workers with collective voice.
Businesses that rely on large pools of independent contractors should track how this law unfolds and be prepared for new collective bargaining obligations that could emerge in the gig economy.
Canada: Burden of proof shift for independent contractors
Canada has recently implemented a significant change in how worker status is determined, one that could influence broader North American trends. In mid-2024, the federal government passed legislation (as part of Bill C-69) establishing a presumption that workers are employees by default in federally regulated industries. Now, when there is a dispute or audit concerning a worker’s classification, the onus is on the employer to prove that an individual is an independent contractor, rather than on the worker to prove they are an employee. This is effectively a nationwide “reverse ABC test” for sectors like banking, telecommunications, interprovincial transport, and others under federal jurisdiction. Treating a true employee as an independent contractor is explicitly made an offense, and mechanisms are in place for misclassified workers to file complaints. This reform, which took effect in 2024, aligns with global moves to curb misclassification: all workers, including gig workers, are considered employees unless proven otherwise. Employers in Canada’s federal sphere now face stricter documentation and evidence requirements to justify independent contractor arrangements, and government agencies have stepped up data-sharing to enforce compliance. It’s worth noting that Canadian provinces are also introducing gig worker protections. For example, Ontario’s Digital Platform Workers’ Rights Act came into force in July 2025, mandating a minimum wage and pay transparency for ride-share and delivery workers, though without changing their contractor status.
The clear trend in Canada is toward greater accountability in how freelancers and gig workers are treated ,a signal to businesses to carefully assess their worker relationships or risk penalties and reclassification.
Mexico: Full employment benefits for platform workers
Latin America’s largest market is also setting a landmark precedent. Mexico amended its Federal Labor Law in late 2023 to include a new chapter on “digital platform work”, with the changes taking effect in June 2025. These amendments effectively recognize gig workers as employees in the eyes of the law, extending an array of employment rights and benefits to individuals working via ride-hailing, delivery, and other digital platforms. Under the reform, platform-based workers are now explicitly entitled to paid breaks, sick leave, health care coverage, paid maternity leave, annual Christmas bonuses, workers’ compensation insurance, enrollment in the national social security system, profit-sharing, and other benefits on par with traditional employees. In short, companies must treat gig workers much like regular employees, bearing the associated labor and social security costs going forward. To ensure compliance, Mexico’s law empowers labor inspectors and imposes stiff penalties, non-compliant platforms can face fines up to MXN $2.7 million (around USD $130,000) after an inspection. Notably, the law also requires algorithmic transparency: platform companies must explain to authorities how their algorithms assign work to avoid hidden biases or unfair practices. Mexico’s aggressive stance is viewed as a significant shift in the gig economy’s legal treatment, potentially influencing similar legislative pushes in other Latin American countries.
For businesses operating in Mexico’s gig space, this means a profound change in operating model, from HR administration to cost structure, as freelancers must be given the security and benefits of formal employees.
Japan: Fair contracting and payment law for freelancers
In Japan, where freelance and contract workers have traditionally operated in a grey zone of fewer protections, a new law aims to level the playing field. The Act on Improvement of Transactions between Freelancers and Undertakings (commonly called the Freelancers Act) took effect on 1 November 2024 and introduced several safeguards for independent workers. Under this law, businesses hiring freelancers must provide a written contract that clearly defines the terms of the project or service. This formal agreement requirement helps ensure both parties have aligned expectations and legal clarity. The law also mandates timely payment, freelancers must be paid within 60 days of delivering their work. For longer engagements (exceeding one month), companies are prohibited from unilaterally returning completed work, reducing agreed compensation, or demanding free re-work unless specific grounds are met. Additionally, if an individual freelancer has been providing services to a business for over six months, the business is now obliged to support a work-life balance (for instance, accommodating child care or nursing care needs), and must give at least 30 days’ notice before terminating the contract in such ongoing relationships. To enforce these rules, Japan has implemented penalties including public "naming and shaming" of violators, warnings for first offenses, and fines up to ¥500,000 for repeat non-compliance. The Japanese Freelancers Act is a response to the growing number of freelancers who lacked bargaining power and faced unfair treatment. For companies engaging contractors in Japan, it underscores the need to establish transparent, fair contracts and payment practices, or face legal consequences under this new regime.
"With legal reforms accelerating across regions, businesses must shift from reactive to proactive compliance. The most successful companies in 2026 will be those that embed freelance classification checks and contract clarity into every engagement."
— Cindy Rullan, Compliance Director, YunoJuno
Why legal compliance matters
These evolving laws highlight a common theme: governments worldwide are closing loopholes and demanding more accountability in the freelance and gig economy. Failing to adhere to the new regulations exposes businesses to significant risks, including hefty fines, payment of back-taxes or benefits, voided contracts, and expensive lawsuits for misclassification. For example, countries like Germany and the Netherlands have ramped up investigations into “disguised employment,” with audits leading to criminal and administrative penalties for companies found evading labor and tax laws Beyond financial penalties, non-compliance can inflict reputational damage, eroding trust with the very freelance talent businesses seek to attract. In a competitive market for skilled contractors, professionals are likely to avoid clients who put them at legal risk or treat them unfairly.
To remain compliant and protect your business amid these legal shifts, proactive measures are essential:
- Centralized contract management: Establish clear, standardized freelance contracts and store them in a secure, accessible system. This makes it easier to ensure every engagement meets legal requirements (such as written terms or specific clauses mandated by laws).
- Classification audits and compliance tools: Regularly review how you classify workers. Leverage software or consult experts to monitor independent contractor arrangements and flag situations that might be high-risk under new tests (e.g. the EU presumption or NZ Gateway Test). Early detection of roles that might be misclassified can prevent violations.
- Adapted payment and benefit systems: If operating across different regions, use global payroll or payment solutions that can accommodate local rules, whether it’s ensuring timely payment to freelancers, facilitating benefit contributions (like Singapore’s CPF deductions), or calculating minimum wage for gig tasks (as required in Ontario) in compliance with local laws.
- Expert legal guidance: Given the pace of change, engage with legal experts or compliance consultants who specialize in labor laws across your operating countries. Periodic compliance reviews of your freelance workforce can catch issues before regulators do. These experts can also help update your contracts and policies in line with the latest legislation.
- Clear communication and training: Educate your hiring managers and teams about the do’s and don’ts when engaging contractors. Make sure those handling freelancer onboarding or management understand the importance of the freelancer’s independence (where required), and the company’s obligations (such as not imposing schedules inappropriately or retaining contracts for the required years). Keeping an open dialogue with freelancers themselves about legal expectations can also foster mutual understanding and reduce disputes.
Preparing for the future
As legal frameworks around freelance and gig work continue to evolve, businesses must adapt not only to stay compliant, but to remain competitive in attracting top independent talent. Forward-thinking companies are incorporating compliance checks into their freelancer onboarding, updating their freelance management practices, and using technology to stay ahead of regulatory changes. In many ways, ensuring compliance is becoming part of the value proposition offered to freelancers, a company known for fair contracts, prompt payments, and respect for independent status will be a client of choice for sought-after contractors.
At YunoJuno, we are committed to simplifying this complexity. Our Freelancer Management System provides innovative tools to help organizations manage their freelance workforce in line with the latest regulations globally, from automated contract generation that complies with local laws, to classification assessments that align with tests like the ABC or Gateway Test. By centralizing freelancer engagements through a compliant framework, businesses can navigate the shifting legal landscape with confidence.
Staying ahead of legislative changes is not just a legal duty but a strategic advantage in the freelance economy. By proactively adjusting to these 2025–2026 legal shifts, whether it’s drafting written contracts in Japan, honoring new unionization processes in California, or restructuring gig engagements in Europe, organizations can protect themselves from risk and build stronger, trust-based relationships with their freelance talent. Embracing compliance as part of your freelance strategy will ensure you’re ready to thrive in the future of work, no matter how the laws change.
