EOR & Compliance Digest, August 2: UK Trade Union Balloting Rules Go Digital

If you run a UK team with union representation, the rules for calling a strike are about to change. UK trade union balloting is moving off paper for the first time since 1992. Electronic and workplace voting are expected to take effect this month. Meanwhile, three payroll deadlines are converging elsewhere. China’s revised occupational health standard kicked in yesterday. India’s wage rule keeps reshaping CTC structures a year after the labour codes commenced. And Mexico’s new overtime caps are already binding, with an electronic time-tracking mandate landing in five months. None of this is optional reading for HR teams managing distributed staff.

UK Trade Union Balloting Goes Electronic

On June 22, 2026, the UK government laid the Trade Unions (Permissible Means of Voting) and Employment Rights (Unfair Dismissal) (Amendment) Order 2026 before Parliament. A revised Code of Practice on Electronic and Workplace Balloting came with it. Subject to parliamentary approval, the Code is expected to come into force in August 2026, according to Morgan Lewis. For the first time, statutory union ballots move off paper.

What Changed

The reforms modernize UK trade union balloting. They add three new voting methods to the postal ballot unions have relied on for decades. Electronic voting lets a union issue and collect ballots online. Hybrid voting mixes postal delivery with an electronic option. Workplace voting is different: it only applies to industrial action ballots, and members vote in person. But it cannot happen unless the employer and union agree in writing first. The new methods cover industrial action ballots, political fund ballots, union elections, and merger ballots. Separately, detriment protections for workers taking official industrial action follow in October 2026. These were created under section 76 of the Employment Rights Act 2025.

Why This Matters for Distributed Teams

If you employ unionized staff in the UK, faster balloting means unions can hit quorum thresholds sooner. They can also organize industrial action with less lead time. However, workplace voting cannot happen without your written agreement. You still control how it rolls out at your company. HR teams should track the October detriment rules closely, too. Those rules will broadly prohibit penalizing workers for taking part in official industrial action. Morgan Lewis flags this as the change most likely to create legal risk over time, more so than the voting reform itself.

What To Do This Week

Review your UK employment law obligations now, before the Code of Practice takes effect. If you have a recognition agreement with a union, check whether workplace voting terms need to be negotiated first. And flag the October 2026 detriment protections to whoever handles disciplinary decisions. Performance and attendance processes involving union members will need a second look once those rules land.

China’s Occupational Health Surveillance Standard Takes Effect

China’s National Health Commission issued a revised standard, GBZ 188-2025 (Technical Specifications for Occupational Health Surveillance), on August 20, 2025. It took effect August 1, 2026, replacing the 2014 version, per the official national standard registry. A peer-reviewed interpretation in Occupational Health and Emergency Rescue counts 12 substantive revision points, covering the target-disease lists, exam cycles, and hazard-factor categories used for health surveillance.

Action required: Mandatory if you employ workers in China exposed to occupational disease hazards. Radiation exposure is covered under a separate standard, so it is excluded here. Employers must schedule health check-ups on the revised cycles and target-disease list, then keep the records current.

So what? If your China operations touch manufacturing, chemicals, or other hazard-exposed roles, even through an EOR, your local HR or safety officer needs to check the updated China employment law requirements now. Office-only teams are unaffected. But distributed companies with mixed China workforces should confirm which roles fall under the new hazard categories before the next scheduled exam cycle.

India’s 50% Wage Rule Keeps Reshaping Payroll

India’s Code on Wages and Code on Social Security took effect November 21, 2025. They standardized the definition of “wages” as Basic Pay plus Dearness Allowance plus Retaining Allowance. Excluded components, such as HRA, conveyance, and overtime, cannot exceed 50% of total remuneration. If they do, the excess gets added back to the wage base, per Mercans’ compliance alert, which draws on Ministry of Labour and Employment FAQs.

Action required: Mandatory. This directly changes how you calculate PF, ESI, gratuity, and bonus. Mercans estimates the shift can raise statutory costs 5 to 15% for employers whose CTC structures lean heavily on allowances instead of basic pay.

So what? If you restructured Indian salary packages before November 2025 to minimize basic pay, run the numbers again. Check them against Asanify’s India salary structure guide. Higher basic pay also means a higher taxable component for employees. So payroll and finance teams should model the take-home impact before the next salary revision cycle.

Mexico Caps Overtime as Workweek Reduction Begins

A reform to Mexico’s Federal Labor Law entered into force May 1, 2026. It caps overtime at nine hours per week for 2026, rising in stages to 12 hours by 2030, according to DLA Piper. Daily shift limits stay at eight hours for day shifts. But the standard workweek itself will shrink gradually, starting in 2027.

Action required: Mandatory. Overtime beyond the new weekly cap must be paid at triple the regular rate, for up to four additional hours. And starting January 1, 2027, employers must log every shift through an electronic time-tracking system. Fines apply for noncompliance.

So what? You have until January 2027 to get electronic timekeeping in place for Mexican employees. But the overtime cap is binding today. If your Mexico team regularly works more than nine overtime hours a week, recalculate your Mexico payroll now, instead of waiting for the next audit. Our full guide to Mexico labour law covers the phased hour reductions through 2030.

Quick Hits

• Brazil’s Senate is fast-tracking a bill for a 40-hour workweek with two paid rest days and no salary cut. DLA Piper confirmed the fast-tracked review as of June 9, 2026.
• The US DHS comment period on its proposal to shorten work-authorization terms closes August 4, 2026. See the Federal Register filing if you want to comment before the window shuts.

Action Items This Week

If you employ union members in the UK: Review recognition agreements and industrial action policies. Do this before this month’s UK trade union balloting reform takes effect.

If you have hazard-exposed workers in China: Confirm which roles fall under GBZ 188-2025’s expanded hazard list. Update health-surveillance schedules now, because the standard is already in force.

If you run payroll in India: Re-check whether basic pay plus dearness allowance covers at least 50% of CTC for every employee. Then model the PF and gratuity impact before your next salary revision.

If you have staff in Mexico: Cap weekly overtime at nine hours, or pay triple-time for the extra four. Start budgeting for the January 2027 electronic time-tracking mandate now.

Tracking a wage-definition change in India, an overtime cap in Mexico, and a health-surveillance standard in China by hand is how compliance gaps happen. Add a UK balloting reform on top, and most small HR teams fall behind. Asanify’s Global Employer of Record platform keeps local payroll rules current across all four countries, so you are not chasing every gazette notification yourself.

Frequently Asked Questions

What is the UK trade union balloting reform?

It is a set of UK government reforms, laid before Parliament on June 22, 2026. They add electronic, hybrid, and workplace voting to the postal-only system used for statutory trade union ballots since 1992. Subject to approval, the changes are expected to take effect in August 2026, covering industrial action ballots, union elections, and merger ballots.

Do EOR employers need to worry about China’s occupational health standard?

Only if you employ workers in roles exposed to occupational disease hazards, such as manufacturing or chemical handling. Office-based or remote hires in China are not affected by GBZ 188-2025. But mixed workforces should check which roles fall under the expanded hazard list.

How does India’s 50% wage rule affect take-home pay?

Employees may see a marginal drop in monthly take-home pay. That is because a higher basic salary increases the taxable component of their compensation. At the same time, PF and gratuity contributions typically rise, since both are calculated on basic wages.

What is Mexico’s new overtime cap?

Employers may assign up to nine hours of overtime per week in 2026, rising gradually to 12 hours by 2030. The first four hours are paid at double the regular rate. Up to four additional hours are paid at triple the regular rate.

Do I need an Employer of Record to stay compliant across these countries?

It depends on your headcount per country. For one or two hires in a new market, an EOR is usually faster and cheaper than setting up a local entity yourself. Once you pass 10 to 15 employees in a single country, direct entity setup often becomes more cost-effective.

Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant  or Labour Law  expert for specific guidance.