With a notification of the Indian government, four codes on labour and social law, which been passed years ago, have now come into force on 21^st November 2025—that is, the „Code on Wages, 2019“, the „Industrial Relations Code, 2020“, the „Code on Social Security, 2020“ and the „Occupational Safety, Health and Working Conditions Code, 2020”. The new statutes run over almost 300 pages of text with a little less than 500 sections and with 13 schedules. Most importantly, they replace 29 separate acts. Unfortunately, unification has its limits—within the new codes, one finds the old rules, section by section, in surprising detail. Material change, thus, is in the detail, which we will address on LinkedIn step by step. Unfortunately, again, the legislative process is not complete: India’s states need to pass rules for the implementation of the codes, and those rules are still missing.

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Your point of contact in India: Dr. Jörg Schendel

Suman Khaitan & Co.

W-13, West Wing, Greater Kailash Part-II
Delhi 110048, Indien

www.sumankhaitanco.in
germandesk@sumankhaitanco.in
schendel@adwa-law.com

New Compliance Obligations from January 2026

A major reform of the Japanese Subcontract Act will enter into force on 1 January 2026. In light of rising raw material, labour and energy costs, the government aims to ensure fair pricing practices across supply chains. For foreign companies and their Japanese subsidiaries or partners, the amendments will bring a number of new compliance requirements.

The Subcontract Act is designed to protect small and medium-sized suppliers by ensuring fair contractual terms and timely payment when dealing with larger contracting businesses.

Under the amended rules, the Act will apply to contracting companies once they exceed certain employee headcount thresholds. Whereas applicability previously depended almost entirely on a company’s stated capital, it will now also extend to businesses with more than 300 employees in the manufacturing sector and more than 100 employees in the services sector. As a result, many companies will fall under the Act for the first time, even if their stated capital is low. The reform also broadens the range of covered transactions, including certain transport and other services.

For the first time, the law will also require contracting companies to respond to subcontractor requests for price adjustments. Unilaterally set prices that remain unchanged despite rising cost pressures will no longer be acceptable where suppliers can demonstrate increased cost burdens. Companies will need to document pricing decisions more clearly and align their internal processes with the new rules.

Foreign companies should begin assessing which entities and contracts will be affected from January 2026 onward, and update their procurement, payment and documentation processes accordingly. Early preparation will help reduce compliance risks and support smooth operations in Japan.

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Your point of contact in Japan: Michael Müller

Mueller Foreign Law Office

Shin-Kasumigaseki Building
3-3-2 Kasumigaseki, Chiyoda-ku
Tokyo 100-0013, Japan

TEL       +81 3 6805 5161
FAX       +81 3 6805 5162

www.mueller-law.jp
info@mueller-law.jp

The Philippines is poised for a major trade breakthrough: The formal accession process to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could begin in 2026, following official recognition of its membership bid by the bloc's 12 member states at their ministerial meeting in Melbourne. The Department of Trade and Industry (DTI) confirmed this milestone, which follows the country's formal application submitted to New Zealand in August 2025, amid efforts to diversify markets and counter global protectionism like U.S. tariffs.

Opportunities for the Philippines

Joining the CPTPP—a high-standard trade pact covering Australia, Japan, Canada, the UK, and others—would unlock preferential market access for Philippine exports in agriculture, electronics, and services, boosting resilience against trade barriers. It promises to attract quality investments, enhance governance, and drive sustainable growth, especially as exports rose 13% to $63 billion in the first nine months of 2025. This positions the Philippines as a key player in Asia-Pacific integration, alongside applicants like Indonesia and the UAE.

Accession Process Overview

• Bid Recognition: CPTPP members acknowledged the Philippines' application in November 2025, scheduling talks for 2026 alongside Indonesia and UAE; Uruguay starts immediately.
• Negotiations: Applicants must align with rules on tariffs, IP protection, and labor standards, requiring unanimous approval from all members.
• Challenges Ahead: Success demands competitive industries and reforms, with no guaranteed entry to uphold the pact's integrity.

This reflects bold trade ambitions amid shifting global dynamics. A game-changer for businesses—how will your firm capitalize?

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Your point of contact in the Philippines: Lutz Kaiser

Villanueva Gabionza & Dy Law Offices

20th/F Corporate Center
139 Valero St., Salcedo Village
Makati City 1227, Philippines

CELL      +63 995 985 4957
TEL        +63 2 8813 3351
FAX       +63 2 8816 6741

www.vgdlaw.ph
manila@adwa-law.com

On 9 December 2025, the Thai Cabinet adopted a resolution approving Thailand’s accession to the “Hague Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents (Apostille Convention),” one of the key instruments developed under the framework of the Hague Conference on Private International Law (HCCH).

Thailand’s accession to the Apostille Convention is expected to significantly simplify the authentication of foreign public documents, as the traditional (time-consuming) legalisation procedure will no longer be required. This development will reduce both procedural complexity and associated costs, thereby increasing convenience for individuals and businesses that require document authentication.

Following Cabinet approval, the Ministry will proceed with the deposit of Thailand’s instrument of accession with the Ministry of Foreign Affairs of the Kingdom of the Netherlands, which acts as the depositary of the Convention. Upon completion of this process, the Convention will officially enter into force for Thailand.

This milestone reflects the joint efforts of the Subcommittee on the Review of Thailand’s Accession to the Apostille Convention, chaired by Ambassador Vilawan Mangklatanakul. The Subcommittee operates under the direction of the National Committee on the Implementation of Thailand’s Membership in the HCCH, which is chaired by the Minister of Justice.

This article is intended to provide a general overview and does not constitute legal advice. If you have any questions or require tailored legal advice, please contact the team at Respondek & Fan.

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Your point of contact in Thailand: Dr. Andreas Respondek

Respondek & Fan Ltd

United Center, 39th Floor, Suite 3904 B
323 Silom Road
Bangkok 10500, Thailand

CELL     +66 89 896 4048
TEL       +66 2 635 5498
FAX       +66 2 635 5499

www.rflegal.com
respondek@rflegal.com

Regional Minimum Wage

Effective 01 January 2026, the so-called regional minimum wages will be adjusted as follows pursuant to Decree 293/2005/ND-CP of 10 November 2025:

In light of the extensive territorial reforms and restructurings at the beginning of July 2025 (merger of various provinces/self-governed cities, abolition of districts, and reallocation of wards (vietn.: phường)), the annex to Decree 293/2005/ND-CP must be reviewed carefully and checked against the current address of your representative office, branch or company. Since in everyday life—at least for taxi rides and delivery services—the new ward-based structure has not yet been widely adopted and the use of the now-abolished district names remains common, please pay attention to the local scope of application of the new regional minimum wages as stated in the annex to Decree 293/2005/ND-CP.

In practice, the above listed minimum wages are often significantly exceeded, depending on location and industry. However, it can be expected that your employees, at least on the shop-floor/production level, will expect a similar percentage increase in their current remuneration (average increase approx. 7.2%).

The regional minimum wages must be taken into account when determining the contribution assessment ceiling for unemployment insurance contributions (20-times the respective regional minimum wage). For the central districts of Ho Chi Minh City and Hanoi (Region I), this means that, as of 01.01.2026, unemployment insurance contributions must be paid on salaries up to 106,200,000 VND (approx. 3,491 EUR).

The statutory minimum wages (applicable to public servants and employees of state-owned enterprises) which are relevant for determining the assessment ceilings for health and social insurance contributions, have not yet been increased.

Tax Allowances

In accordance with the resolution of the Standing Committee of the National Assembly No. 110/2025/UBTVHQ15 dated 17.10.2025 the personal income tax threshold as well as the permissible increases for dependents will be changed from 01.01.2026 as follows:

Last but not least

The Ministry of Home Affairs announced the Tết holidays (Lunar New Year celebrations) for civil servants and state employees in its Announcement No. 9441/TTB-BNV dated 16 October 2025. The New Year holidays in 2026 will begin on Monday, 16 February 2026, and end on Friday, 20 February 2026. Privately owned enterprises will adopt such schedule and may extend such depending on their seasonal workload.

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Your point of contact in Vietnam: Christian Brendel

Brendel & Associates Law Co., Ltd.

D&D Tower, 10th Floor
458 Nguyen Thi Minh Khai Ward 2, District 3
Ho-Chi-Minh-Stadt, Vietnam

CELL     +84 98 978 4791
TEL       +84 28 3911 2008
FAX       +84 28 3911 2010

www.brendel-associates.com
info@brendel-associates.com