Welcome to the February 2026 edition of the Global Employment Tax and Compliance Newsletter.
This month’s updates cover changes affecting employer cost, payroll execution, labour compliance, and immigration eligibility across key jurisdictions. We focus on what has changed and where employers should pay attention when planning cross-border hiring and workforce management in 2026.
European Union: EU Visa Strategy 2026
On 29 January 2026, the European Commission presented its first EU-wide visa strategy, alongside initiatives focused on innovation talent and migration management.
The strategy outlines further digitalisation of visa processes, closer coordination between Member States, and stronger integration between visa systems and border databases. Proposals under consideration include longer-validity multiple-entry visas for trusted travellers and revised criteria for granting or suspending visa-free access to third countries.
A practical development is the launch of a pilot Legal Gateway Office in India, initially focused on the information and communication technology sector. The initiative is designed to facilitate structured, compliant migration pathways between India and the EU, with potential expansion to other countries and sectors.
At the same time, the Commission signalled closer oversight of employer compliance, including a possible strengthening of the Employer Sanctions framework. For companies operating across the EU, the direction is toward more coordinated immigration policy, greater digital processing, and increased alignment between visa eligibility and employer accountability.
United States: Immigrant Visa Issuance Paused for Nationals of 75 Countries
On 14 January 2026, the U.S. Department of State announced that, from 21 January 2026, immigrant visas would no longer be issued to nationals of 75 designated countries while public charge adjudication procedures are reviewed.
The suspension applies only to immigrant visas processed through consular channels. Non-immigrant categories such as H-1B, L-1, F-1, J-1 and B visas are not affected.
Although applicants may continue to file and attend interviews, consular posts have been instructed not to finalise issuance. Eligible cases are being held in administrative processing pending further direction. The policy moves away from individualised assessment and applies the pause solely on the basis of nationality.
The affected countries are:
Afghanistan, Albania, Algeria, Antigua and Barbuda, Armenia, Azerbaijan, Bahamas, Bangladesh, Barbados, Belarus, Belize, Bhutan, Bosnia and Herzegovina, Brazil, Burma, Cambodia, Cameroon, Cape Verde, Colombia, Côte d’Ivoire, Cuba, Democratic Republic of the Congo, Dominica, Egypt, Eritrea, Ethiopia, Fiji, The Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyz Republic, Laos, Lebanon, Liberia, Libya, Moldova, Mongolia, Montenegro, Morocco, Nepal, Nicaragua, Nigeria, North Macedonia, Pakistan, Republic of the Congo, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, Thailand, Togo, Tunisia, Uganda, Uruguay, Uzbekistan, and Yemen.
U.S. permanent residence pathways for employees from these countries are paused indefinitely. Long-term transfers, retention planning linked to green card sponsorship, and family-based immigration sequencing may require recalibration. Existing valid immigrant visas are not cancelled, and dual nationals using a passport from a non-listed country are not subject to the pause. No end date has been announced.
Switzerland: 2026 Immigration Updates
Immigration measures confirmed at the end of 2025 are now taking effect in 2026, with implications for recruitment, business travel, and compliance.
The Stellenmeldepflicht vacancy notification requirement has expanded, bringing a broader range of occupations within mandatory pre-advertising notification. Employers should check whether roles fall within the updated thresholds before initiating recruitment.
The Schengen Entry/Exit System is being introduced progressively until April 2026. Non-EU/EFTA short-stay travellers must register biometric data at first entry, which may increase processing time during the transition.
Permit quotas for non-EU/EFTA nationals, EU/EFTA service providers over 120 days, and UK nationals remain unchanged for 2026. Croatian nationals now have unrestricted access to the Swiss labour market. The UK–Switzerland Services Mobility Agreement has been extended until 31 December 2029.
Temporary protection status S for persons from Ukraine has been extended until March 2027, with employment continuing under the notification procedure.
Canada: Express Entry Prioritises Targeted Talent in 2026
On 18 February 2026, Canada announced changes to its Express Entry system, including a new category aimed at senior managers.
The update expands targeted selection across priority occupations, including executives, researchers, physicians, transport roles, military recruits, and other high-demand sectors. Most candidates will need at least one year of recent work experience in an eligible occupation to qualify under category-based draws.
The change follows the removal of Arranged Employment points in 2025, which had made permanent residence less predictable for certain senior profiles. The new executive-focused category reintroduces a clearer pathway for eligible managers already working in Canada.
For employers, this is primarily a retention development. Senior leaders and specialised professionals who previously lacked a defined permanent residence route may now have renewed eligibility through Express Entry. Provincial nomination programmes remain relevant, particularly given increased allocation levels for 2026.
Canada’s direction remains selective and sector-focused, with immigration tools increasingly tied to defined labour market priorities.
India-United Kingdom: Social Security Agreement Signed
On 10 February 2026, India and the United Kingdom signed a bilateral Social Security Agreement (SSA), following commitments made under the India–UK Comprehensive Economic and Trade Agreement signed in July 2025. The SSA is expected to enter into force alongside the trade agreement during the first half of 2026.
The agreement is designed to prevent dual social security contributions for employees temporarily assigned between the two countries. Under the terms announced, detached workers may continue contributing only to their home-country system for assignments of up to 36 months, provided a Certificate of Coverage is obtained.
For employers, the practical impact is cost certainty. Where assignments fall within the permitted duration and documentation requirements are met, host-country social security contributions should not arise in parallel with home-country payments. This reduces assignment cost duplication and simplifies payroll administration for short-term mobility.
The agreement strengthens the mobility framework between India and the United Kingdom, two closely linked labour markets and formalises contribution coordination that many employers have been awaiting.
Estonia Joins Cross-Border Telework Framework
From 1 February 2026, Estonia has joined the EU’s multilateral agreement on cross-border telework, bringing the number of participating countries to 23.
The agreement allows employees who live in one participating country and work for an employer in another to perform up to 49% of their duties from their country of residence while remaining covered by the employer’s social security system. Under the standard EU rules, that threshold would normally be 25%.
To apply the arrangement, both countries must be signatories and an A1 certificate (it confirms which country’s social security system applies to a cross-border worker) must be obtained confirming which country’s social security legislation applies. Retroactive applications are limited.
For employers, Estonia’s entry expands the pool of employees who can work remotely across borders without shifting social security liability. The framework, however, is limited to work performed between the country of residence and the employer’s country. Regular work in additional jurisdictions may invalidate the arrangement.
India Union Budget 2026-2027: Compliance Reform
India’s Union Budget 2026-2027 introduces compliance-focused personal tax measures and proposes a new voluntary disclosure scheme for certain foreign assets.
The proposed Income-tax Act, 2025 is scheduled to take effect from 1 April 2026, accompanied by simplified forms and greater digitalisation of individual tax processes. Applications for lower or nil withholding certificates would move fully online, and from 1 October 2026 resident buyers deducting tax on property purchases from non-residents would no longer need to obtain a separate TAN.
A significant development is the proposed Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS 2026). Eligible individuals would have a time-bound opportunity to declare previously undisclosed foreign assets or foreign-sourced income by paying specified tax and fees, with limited protection from penalties and prosecution under the Black Money Act. The effective date of the scheme is yet to be announced.
The Budget also proposes extended timelines for filing revised returns, broader access to updated returns, and reduced Tax Collection at Source rates on certain foreign remittances and overseas tour packages from 1 October 2026.
If enacted, the measures combine procedural simplification with a defined window to regularise offshore reporting positions.
International Expansion: Making the Right Decisions in the Right Order
International expansion is often presented as a market question. In practice, it becomes an employment question very quickly.
Which country you choose affects total employment cost, tax exposure, labour law constraints, and access to talent. How you enter that country determines whether you are locked into a local entity or able to test demand without permanent commitment. How you hire determines whether you create contractor misclassification risk, immigration exposure, or permanent establishment concerns.
This article walks through expansion as a sequence of decisions: market selection based on cost and labour conditions; choice of entry model; role-by-role assessment of employment versus contractor engagement; and only then recruitment and onboarding. Each step narrows the next.
The focus is on understanding cost, compliance, and reversibility before headcount is placed on the ground.
Intellectual Property and Global Employment in 2026
Intellectual property is created through people. When those people are spread across multiple jurisdictions, ownership depends on the employment and contractor laws of each country involved.
This article examines how IP rights are formed, assigned, and consolidated when work is performed remotely and across borders.
Employee-created works do not vest uniformly across jurisdictions. Contractor arrangements require locally valid assignment. Some countries impose compensation rules for inventions or preserve moral rights that cannot be waived. Corporate group transfers require deliberate legal execution.
In distributed teams, commercial unity does not automatically produce legal unity. Ownership must be traceable from each contributor to the entity asserting control, particularly in investment, M&A, licensing, or regulatory review.
The Misclassification Risk: How Countries Draw the Line on Employment
Over the past decade, and especially after COVID, contractor engagement moved from exception to operating model. Remote work, digital platforms, and cross-border delivery made it easy to scale without traditional employment models, but also increased exposure to misclassification risk.
This article examines what followed: closer scrutiny by tax authorities, labour inspectorates, and social security bodies. Reclassification can trigger retroactive payroll tax, social security contributions, statutory benefits, penalties, and in some jurisdictions, employment protection claims.
The article compares global approaches to status testing, from multi-factor substance assessments to statutory presumptions such as ABC tests and platform worker regulations. It highlights how control, integration, economic dependence, and role drift shape exposure across jurisdictions, particularly where operational reality diverges from contractual form.
Severance Rules: Cost, Compliance, and Termination Risk
When companies compare markets, they usually compare hiring cost. This article looks at the other side of the employment lifecycle: what it costs to exit.
Severance is not calculated the same way everywhere. In some countries it follows a clear statutory formula. In others, the legal ground for dismissal and the quality of process determine exposure. Certain systems build entitlement over time through mandatory accrual. Others create risk through litigation rather than fixed payment. The financial outcome of the same termination can vary significantly depending on location.
The article walks through dismissal regimes across major economies and explains how tenure, justification standards, consultation duties, and reinstatement risk shape real exit cost. It also highlights how these variables affect restructuring timelines and workforce flexibility.
Looking Ahead
Thank you for reading this edition of the Global Employment Tax and Compliance Newsletter.
Our aim each month is not simply to report regulatory developments, but to identify the changes that materially affect cross-border workforce planning and to explain how they operate in practice. Immigration policy, tax reform, social security coordination, dismissal rules, and worker classification do not sit in isolation. They shape hiring decisions, cost modelling, mobility planning, and long-term risk.
We will continue to monitor these developments across jurisdictions and provide analysis grounded in operational reality rather than headline commentary.
Until next month.