Smart News | LPA Law’s Global Legal Insights

9th July 2025

Smart News | LPA Law’s Global Legal Insights

Welcome to LPA Law’s Global Legal Insights Smart News, your go-to resource for legal developments and strategic insights from across our international network.

With 14 offices worldwide and five dedicated international desks based in Paris, our firm remains committed to supporting clients and partners in navigating cross-border legal challenges.

Legal news

Europe | LPA-GGV becomes LPA – one unified brand
Africa | The new payment services framework in the West African Economic and Monetary Union (WAEMU)
Asia | LPA Law expands further in Asia with the integration of APFL Partners Vietnam LLC
Asia | The Great Investment Liberation – A Vietnamese legal fiction
Asia | Abolition of MPF Offsetting Arrangement in Hong Kong has come into force
Asia | New Regulations on the Chinese Tax Resident Certificate
Asia | Hong Kong companies Re-Domiciliation Regime has come into effect
Asia | Expected amendments to the Act on the Protection of Personal Information in 2025
Asia | Legal update on Singapore Employment Law: key developments

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Europe | LPA-GGV becomes LPA – one unified brand

Our German partners from LPA-GGV now operate solely under the name LPA – a clear step towards a stronger international presence and a sharper brand strategy. The merger with LPA (formerly LPA-CGR avocats) in Paris has been a success: for over 12 years, our teams in Germany, France, and beyond have worked closely together on cross-border mandates. To reflect this collaboration, national suffixes like “GGV” and “CGR” are no longer used. Going forward, we present ourselves internationally under the unified name: LPA. Our German teams look forward to continuing this journey with clients and partners under the unified brand.

\\ Dr. Kay Jess \ Olivier Kirfel

 

Africa | The new payment services framework in the West African Economic and Monetary Union (WAEMU)

The European Directive 2015/2366 of November 25, 2015 on payment services (commonly known as “PSD2”) has had a significant impact on the payment ecosystem within the European market by integrating the technological advances brought by fintech companies.

Since the adoption of PSD2, banking institutions have been required to provide a secure Application Programming Interface (API) that allows all authorized operators to securely exchange their customers’ banking data between different applications—a practice known as “open banking.” This cooperation has enabled the emergence of new third-party payment service providers that can access accounts, aggregate account data, and initiate payment services.

PSD2 also introduced security requirements that payment service providers must comply with when processing payments or offering related services. One such measure is strong customer authentication, which became mandatory with PSD2.

In the member states of the West African Economic and Monetary Union (“WAEMU”) including Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo, payment service regulation had become outdated and was largely limited to Instruction No. 011-12-2010, which covered the classification, operations, and legal structure of financial institutions with banking characteristics. As a result, there was considerable uncertainty regarding the regulatory status of fintech companies operating in the WAEMU region.

To adapt to developments in the banking sector—especially the disruptive impact of fintechs on regulators—a new Uniform Law was adopted on June 16, 2023, by the WAEMU finance ministers and entered into force on January 1, 2024 (the “Uniform Law”).

Following this, the Central Bank of West African States (BCEAO) issued a new Instruction No. 001-01-2024 on January 23, 2024, concerning payment services in the WAEMU. The key innovations introduced are outlined below.

1. Payment Services

1.1. Expansion of Payment Service Offerings

Under Instruction No. 011-12-2010, payment services were defined as any professional activity that provides the public with instruments or services enabling the execution—regardless of the infrastructure, medium, or technical process used—of the following operations considered payment transactions:

• Collections;
• Deposits;
• Withdrawals;
• Transfers;
• Payments;
• Direct debits.

Although somewhat ambiguous, these elements bore resemblance to the first Payment Services Directive (PSD1 – Directive 2007/64/EC), but their scope remained difficult to interpret.

Instruction No. 001-01-2024 is far more precise and aligns more closely with PSD2. It now defines the following as payment services:

1. Cash deposits and withdrawals, and account management operations;
2. Execution of the following payment transactions:
3. One-time or recurring transfers and direct debits;
4. Payment transactions made with a card or similar device;

iii. Money remittance operations;

1. Payment transactions conducted via any means of communication;
2. Issuance of payment instruments;
3. Acquisition of payment transactions;

vii. Payment initiation services;

viii. Account aggregation or account information services.

1.2. Introduction of Account Aggregation and Payment Initiation

Simplifying somewhat, Instruction No. 011-12-2010 essentially mirrored the services under PSD1, while Instruction No. 001-01-2024, like PSD2, introduces account aggregation and payment initiation services.

Account aggregation is defined by Instruction No. 001-01-2024 as a service that allows a payment services user to access, through a single interface—such as a website and/or a mobile application—consolidated information regarding one or more of their accounts held with one or more payment service providers.

Payment initiation is defined as a service that enables a payment order to be initiated at the request of the payment service user concerning an account held with another payment service provider.

Payment initiation has grown significantly in recent years and involves a new actor: the Payment Initiation Service Provider (PISP). This service allows customers to initiate payments through an interface—either online or mobile—that may differ from their bank’s interface. The customer chooses the bank and account to debit and selects the type of transfer (standard or instant). The PISP transmits the payment order to the bank, which then transfers the funds to the recipient’s institution.

1.3. Payment Account

The payment services mentioned in points i) to vi) above are linked to a payment account opened by the user with the payment institution. Certain operations are prohibited on these accounts—such as interest payments or using funds for investment purposes.

2. Introduction of Strong Customer Authentication

Payment service providers must implement strong customer authentication (SCA) when the payer:

1. Accesses their payment account online;
2. Initiates an electronic payment transaction;
3. Performs any other action that may pose a fraud risk.

SCA involves verifying the identity of the user or validating their use of a payment instrument by combining at least two of the following three elements:

Strong authentication is the procedure for strengthening the verification of the identity of a payment service user or the validity of the use of a given payment instrument, through the combination of at least two of the following three elements:

(a) Knowledge, i.e. information that only the payment service user knows, such as a password or secret code;

(b) Possession, i.e. the use of an item belonging to the payment service user, such as a mobile phone, smart card or dedicated device provided by their payment service provider;

(c) Inherent characteristics, i.e. a personal feature of the payment service user, such as their voice, face, fingerprint or other biometric data.

3. Clarification of Market Participants

3.1. Payment Institutions

Under Instruction No. 011-12-2010, payment institutions were included under the category of financial institutions.

According to Instruction No. 001-01-2024, payment institutions form a separate category from credit institutions (banks and financial institutions) and also from electronic money institutions, financial companies, and microfinance institutions, which carry out banking operations and are authorized to provide payment services on a regular basis.

Unlike credit institutions, payment institutions cannot perform banking operations and are authorized to offer only payment services. However, banks, financial institutions, and electronic money institutions can provide payment services as part of their broader licenses.

Payment institutions are authorized to provide one or more payment services. In practice, there are four types of payment institutions:

• Those offering all services listed in Section 1.1;
• Those offering only aggregation services;
• Those offering only payment initiation services;
• Those offering both aggregation and initiation services.

Payment institutions may not under any circumstances use payment service users’ funds for their own account or use funds in a payment account to make investments on behalf of the customer.

In both the 2010 and 2024 regulations, payment institutions must obtain authorization from the Central Bank in order to operate.

• Payment Service Agents and Outsourcing

Under the 2010 regulatory framework, in order to avoid the constraint of obtaining a license, foreign payment service providers generally operated under a mandate agreement with a licensed institution—such as a credit institution, a payment institution, or an electronic money issuer. This mandate agreement, particularly with credit institutions, allowed these providers to operate under the license and responsibility of the licensed entity without having to apply for their own license, often justified by the fact that these providers were only involved in the technical part of the payment service.

This arrangement had already been addressed for electronic money under Instruction No. 008-05-2015, through the introduction of the concepts of distributor/sub-distributor and technical operators.

Distributors or sub-distributors are only responsible for carrying out money transfer or payment operations, but may under no circumstances engage in the regulated activity of issuing electronic money. They operate under the responsibility of the issuer.

Technical operators, on the other hand, are solely responsible for providing the issuing institution with technical services, as well as the material and software infrastructure required for processing electronic money transactions, without being themselves electronic money issuers.

Instruction No. 001-01-2024 introduced similar concepts for payment institutions.

• Agents

Instruction No. 001-01-2024 clarified two types of agent contracts:

The first applies to agents acting on behalf of one or more credit institutions, referred to as “banking agents”, whose main activity consists of presenting, offering, or assisting in the conclusion of all or part of banking operations, or performing any preparatory work or advisory services related to such operations.

The second applies to agents acting on behalf of one or more payment institutions, referred to as “payment service agents”, whose main activity is the provision of the specific payment service(s) for which they are mandated.

Both banking agents and payment service agents are now required to be registered (rather than licensed) with the Central Bank.

The payment institution remains fully liable to third parties for any acts carried out in its name and on its behalf by the payment service agent(s) it appoints.

It can therefore be inferred that the previous model of mandate-based operation—used to avoid the need for licensing—may continue, with the important distinction that the mandated service provider must now be registered with the BCEAO.

3.4. Outsourcing and Partnerships

Under Instruction No. 001-01-2024, a payment service provider may outsource its activities by relocating infrastructure or systems under the responsibility of a third party, or by entrusting, on a long-term and regular basis, the performance of service delivery or other operational tasks through subcontracting, mandate, or delegation. Outsourcing thus appears to differ from agency arrangements in that the former typically concerns only part of the service, whereas the latter may involve the entire service.

Any proposed outsourcing agreement involving critical operational functions (defined as “any function whose partial or total failure could impair the payment service provider’s ability to continuously meet licensing requirements or other regulatory obligations, the quality or continuity of its payment services, or negatively impact its financial performance”) must be submitted in advance to the Central Bank and the Banking Commission for notification.

Payment service providers may also enter into service provision partnerships for the delivery of their payment services, provided that they comply with the applicable outsourcing rules. Exclusivity clauses are not permitted in such partnerships.

4. Licensing and Registration Requirements

Instruction No. 001-01-2024 specifies the requirements based on the nature of the service provided.

Account aggregation requires registration with the BCEAO. All other services require a license.

Minimum capital requirements vary based on service type:

• 10 million CFA francs for aggregators;
• 20 million CFA francs for PISPs;
• 30 million CFA francs for combined aggregator and PISP services;
• 100 million CFA francs for other payment services (points i to vi above).

The application for authorization as a payment institution must be addressed to the Governor of the Central Bank and submitted to the National Directorate of the BCEAO in the country of establishment. This means that authorization can only be granted in the country where the entity is incorporated.

The application process for obtaining payment institution status must be completed within six (6) months from the date of receipt of the complete application file. For the registration of an aggregator, the processing period is three (3) months.

Payment institutions must be incorporated as a public limited company (société anonyme), a limited liability company (société à responsabilité limitée), or a cooperative society (société coopérative). However, in light of the governance requirements set out in Instruction No. 001-01-2024—particularly the obligation to have a deliberative body and an executive body—the public limited company form appears to be the most appropriate.

Payment institutions must have their head office in the territory of a WAEMU member state.

5. Authorization Requirements

The instruction requires BCEAO authorization for a number of operations relating to payment institutions, such as:

• Changes in legal form;
• Relocation of the registered office;
• any acquisition or disposal of a shareholding that would result in the shareholding of the same person, directly or indirectly, in the institution first exceeding the blocking minority and then the majority of voting rights, or reducing that shareholding below those thresholds;
• Disposal of more than 25% of assets.

6. Financial Innovation Lab

Regulatory sandboxes are designed to guide and inform promoters of innovative projects about the regulatory framework applicable to their activities. Created by central banks, they provide innovators in financial products and services with a secure environment in which to test their projects on a limited segment of the population, under a relaxed regulatory regime and for a limited period of time.

Innovation hubs, on the other hand, are the most commonly implemented structures by regulatory authorities. They serve as channels of communication and dialogue with project promoters and developers of new financial services. Their purpose is to clarify the regulatory scope and related licensing requirements, as well as to collect feedback from innovators—feedback that can, in turn, help shape future regulatory adjustments.

The BCEAO has chosen to establish a financial innovation lab, allowing companies offering innovative services in the financial sector to test their products, services, or solutions within a defined period and under a simplified regulatory framework.

Under the new Uniform Law, the BCEAO may grant any eligible legal entity access to the Financial Innovation Lab through a temporary exemption allowing it to carry out one or more banking operations in a controlled testing environment. The duration of the exemption and the applicable conditions are determined by the Central Bank.

This raises the question of how the role of this lab, as provided for in the Uniform Law, overlaps with that of the UMOA FinTech Knowledge and Monitoring Office (BCSF-UMOA).

7. Regularization and Sanctions

The Instruction initially provided a six (6) month compliance period, ending on July 31, 2024. This deadline was first extended to January 31, 2025, and then, by BCEAO Notice No. 004-03-2025, to May 1, 2025. In Notice No. 006-05-2025, the BCEAO reversed its position and granted a new compliance deadline of August 31, 2025.

As of that date, any non-licensed entity must cease offering payment services within the WAEMU.

It is important to note that, under the Uniform Law, no person may, without having been duly licensed and registered on one of the official lists of approved institutions:

1. Engage in banking activities;
2. claim to be a financial institution, payment institution, electronic money institution, or FinTech company, or create the appearance of being such, in particular by using terms such as bank, banker, banking, financial institution, payment institution, electronic money institution, or FinTech in its corporate name, trade name, advertising, or in any other way in its business activities; or carry out the activity of issuing and managing electronic money.
3. Engage in the issuance and management of electronic money.

Anyone who violates these provisions, acting on their own behalf or on behalf of a third party, shall be subject to a prison sentence of one (1) to two (2) years and/or a fine ranging from twenty million (20,000,000) to two hundred million (200,000,000) CFA francs.

It should also be noted that no one may act as a mandated intermediary without first being registered in the register maintained by the Central Bank. Anyone who violates this provision, whether acting on their own behalf or on behalf of a third party, shall be subject to a fine ranging from ten million (10,000,000) to one hundred million (100,000,000) CFA francs.

Sébastien Thouvenot

 

Asia | LPA Law expands further in Asia with the integration of APFL Partners Vietnam LLC

As part of its international strategy, LPA Law is strengthening its commitment to clients in Asia through the integration, in February 2025, of APFL Partners Vietnam LLC into the LPA Law network. APFL is a leading international law firm in Vietnam, with offices in Hanoi and Ho Chi Minh City.

This strategic growth, based on complementarity and a shared vision, enables companies looking to invest in Vietnam to benefit from the legal support of a proven multicultural team with deep experience across key sectors such as real estate, manufacturing, energy, agri-food, hospitality, infrastructure, retail, and media in Asia.

Arnaud Bourrut-Lacouture

 

Asia | The Great Investment Liberation – A Vietnamese legal fiction 

Vietnam takes a bold leap forward by abolishing the Law on Investment, transforming its economic landscape overnight. For decades, businesses struggled with bureaucratic hurdles, stagnant approvals, and investment bottlenecks. Now, with this legal burden lifted, the country embraces a market-driven, permission-free investment environment. 

The Immediate Aftermath Without the requirement for investment approval, investors simply comply with existing laws and register businesses like in the United States, Japan, and Germany. Entrepreneurs, once entangled in approval layer, now face a simplified regulatory process focused solely on operational licenses, tax compliance, and environmental protection. 

Within weeks of the law’s abolition, over billions worth of stalled projects begin construction. Industrial parks expand at unprecedented rates, garment factories secure land without waiting years, and high-tech zones attract foreign investors with streamlined procedures. 

The Transformation of Government Oversight Vietnam’s provincial governments, previously caught in excessive red tape, shift from gatekeeping approvals to enforcing compliance. The administration focuses on project delivery rather than controlling market entry. 

To prevent loopholes, new sector-specific frameworks emerge: 

• Environmental agencies tighten pollution regulations without slowing investment.
• Financial authorities ensure transparency in foreign direct investment (FDI) without burdening firms.
• New operational licenses applications develop. 

Private sector booms with institutional barriers removed, Vietnam witnesses an explosion of private sector activity: 

• Foreign investors flood the market, bringing in high-tech manufacturing and pharmaceutical innovation. 
• Startups launch effortlessly, bypassing lengthy approval chains that previously stalled business creation. 
• Local enterprises flourish, as businesses gain the ability to expand without excessive licensing demands. 

Vietnam’s economy enters an era of unparalleled dynamism, setting a new ASEAN benchmark for investment efficiency. 

Returning to Reality: Vietnam’s Current Economic Landscape and Potential Gains 

Vietnam’s economic trajectory has been remarkably resilient, with GDP growth projected at 6.8% in 2025. The country has successfully recovered from global trade disruptions, maintaining strong export performance and attracting foreign direct investment (FDI). However, challenges remain, including global economic uncertainties, financial sector risks, and infrastructure gaps. 

The potential abolition of the Law on Investment in Vietnam which is currently being considered would mark a significant shift, comparable to the passing of the unified Law on Enterprise and Law on Investment in 2005. 

The 2005 reform was a milestone in Vietnam’s economic liberalization, creating a single legal framework for both domestic and foreign enterprises, streamlining business registration, and enhancing investor confidence. It was a critical step in Vietnam’s WTO accession, signalling commitment to market-oriented reforms. 

However, while the 2005 laws simplified procedures, they still maintained regulatory oversight to ensure economic stability. In contrast, abolishing the Law on Investment entirely would remove approval requirements altogether, potentially accelerating investment flows but also raising concerns about unchecked market entry, monopolization risks, and regulatory gaps. The key difference lies in balance—the 2005 reform harmonized regulations, whereas a full abolition would shift Vietnam toward a more laissez-faire investment model, requiring stronger sector-specific governance to mitigate risks. 

Source: A call to scrap Vietnam’s tangled investment approval system 

Etienne Laumonier

 

Asia | Abolition of MPF Offsetting Arrangement in Hong Kong has come into force

The abolition of the MPF offsetting arrangement has been in effect since 1 May 2025, following its enactment on 9 June 2022 through the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022.

From now on, the accrued benefits derived from employer’s MPF mandatory contributions (ERMC) can no longer offset employee’s severance payment (SP) or long service payments (LSP) for service after this date, though they can still offset payments for service before it. However, the accrued benefits derived from employer’s MPF voluntary contributions and gratuities based on years of service remain eligible for offsetting SP and LSP.

Nicolas Vanderchmitt

 

Asia | New Regulations on the Chinese Tax Resident Certificate

The State Administration of Taxation (« SAT ») has issued an Announcement on Matters Relating to the China Tax Resident Certificate (the « New Announcement« ), which came into effect on  April 1, 2025.

Based on the announcements previously promulgated by the SAT in 2016 and 2019, the New Announcement optimizes the issuance of the China Tax Resident Certificate and expands its application scope, so as to provide protection and convenience for Chinese tax residents to conduct cross-border activities.

The ‘China Tax Resident Certificate’ is an important document used by taxpayers outside China to prove their Chinese tax resident status. It is mainly used to enjoy the treatment of tax treaties. Until now, China has signed tax treaties with 114 countries and regions.

In addition to the purpose of enjoying treatment of treaty, it is the first time that the New Announcement confirms that the ‘China Tax Resident Certificate’ can be used for other purposes, such as establishment of overseas subsidiaries or branches, opening of bank accounts in foreign countries, and registration of non-operational entity (no personnel, no tangible assets) in foreign countries to benefit from favorable tax treatment.

For the first time, domestic partnership enterprises can apply for the ‘China Tax Resident Certificate’ by their Chinese resident partners and indicate the partnership on the Certificate.

Enterprises and individuals can easily apply for the ‘China Tax Resident Certificate’ through online tax bureau platform.

The New Announcement also allows to issue the tailor-made ‘China Tax Resident Certificate’ if foreign authorities have specific format requirements. In such case, applicants shall communicate with the competent authorities of the foreign country to clarify the special requirements for the Certificate.

The release of the New Announcement provides more efficient support for « going out » enterprises and individuals for their investment.

Fanny Nguyen | Hélène Liu

 

Asia | Hong Kong companies Re-Domiciliation Regime has come into effect

On 23 May 2025, Hong Kong’s new inward company re-domiciliation regime officially came into effect following the passage of the Companies (Amendment) (No. 2) Bill 2024. This reform allows eligible companies incorporated outside Hong Kong to transfer their place of incorporation to Hong Kong while preserving their legal identity, which is a significant simplification compared to the previous requirement of winding up the foreign entity and establishing a new Hong Kong company.

This new framework is expected to significantly strengthen Hong Kong’s position as a leading corporate hub in the Asia-Pacific region.

Nicolas Vanderchmitt

 

Asia | Expected amendments to the Act on the Protection of Personal Information in 2025

The Act on the Protection of Personal Information (Act No. 57 of 30 May 2003 – the “APPI”) is the main law regulating data privacy in Japan. It applies to all business operators (natural persons or legal entities) located in Japan that handle personal information, with the purpose to strike a balance between the protection of the rights and interests of individuals and the use of personal information.

Originally enacted in 2003, the APPI has been subject to several amendments pursuant to the so-called ‘triennal review’ provisions added in 2015, which provide a reform procedure every 3 year to adapt the APPI to the significant progress in information and communication technology.

Accordingly, the Personal Information Protection Commission (“PPC”) is preparing for the next amendment to the APPI expected to be finalized in 2025. Following the release of the interim report on 27 June 2024 and a public consultation phase, the PPC has released on 5 March 2025 the “Proposal for an approach to the system issues surrounding the Personal Information Protection Act” (the “Proposal Draft”) which may have a substantial impact on businesses handling personal data.

Being noted that, as the Proposal Draft only reflects regulatory intentions, it is not legally binding at this stage. The timeline for the finalization and enforcement of the amendments to the APPI has not yet been officially confirmed.

Key issues and proposals

The Proposal Draft aims to address three key main issues as identified in the interim report, 1) tailoring consent requirements based on the nature of the individual or the intended use of data, 2) mitigating risks associated with biometric data collection, and 3) ensuring effective compliance with the APPI; all without hindering innovation or progress.

1. Tailoring consent requirements to individuals or data use

The PPC proposes a more flexible framework for obtaining consent, this requirement being either tightened or relaxed depending on the context of data collection and characteristics of data subjects.

As the APPI does not currently contain any provision in relation to the processing of information of children, guidelines regarding the APPI generally provide that, in circumstances where consent is required for the processing of personal data of minors aged 12 to 15, such as in cases involving the use of personal data for purposes beyond those originally specified, the collection of sensitive personal information, or the provision of such data to third parties, consent should be obtained from a legal representative or other duly authorized guardian. However, such guidance remains merely advisory in nature and may not, in and of itself, constitute a sufficient or comprehensive legal basis for compliance.

Therefore, the PPC discusses introducing specific rules for such children under age of 16. It is proposed that, where consent is required, it would need to be obtained from the legal guardian. It is also considered granting minors (or their guardians) the right to request suspension of data use, even if no unlawful processing has occurred. Businesses would further be required to act in the best interest of the child when handling such data, and guardians must do the same when granting consent. In light of the vulnerability of children and past incidents involving serious breaches of children’s personal information, consideration is also being given to strengthening the obligations of businesses to implement appropriate security control measures.

At the same time, the PPC suggests to allow personal data to be processed or shared with third parties without individual consent (and therefore, no longer require it) when (i) data is used solely for statistical purposes or general-purpose analysis (i.e., for AI training), (ii) data is shared for the fulfillment of a contract or in situations where such use clearly aligns with the individual’s intent (for example, hotel booking intermediaries or international fund transfers) and (iii) data is used for public health or medical and scientific research. Overall, the idea is to relax consent requirements when it is used for research purposes and/or is very unlikely to infringe individual rights. In any case, such exemptions would be subject to strict safeguards, such as prior disclosure of processing purposes, contractual limitations, and prohibiting further use or onward transfer.

In extension, the Proposal Draft considers exempting businesses from immediate reporting of personal data breaches in low-risk cases (especially when only one individual is affected or when internal identifiers are leaked), particularly if the business has obtained certification from a third party attesting to adequate security safeguards.

2. Mitigating risks associated with biometric data collection

With the development of AI-powered cameras and facial recognition technologies, the Proposal Draft highlights the need to reinforce the legal framework applicable to facial feature data as it holds high privacy sensitivity due to its permanence and ease of collection without the individual’s knowledge. It is envisioned that the term “facial feature data” would be defined as information extracted from the structure of the face, skin tone, and the position and shape of facial components such as the eyes, nose, and mouth, which enables the identification of an individual through devices or software designed for that purpose. It should be noted that ordinary facial photographs would not fall under the definition of “facial feature data.”

With that in mind, key proposals include:

• requiring businesses to disclose detailed information on the use of facial feature data such as purpose of use, data collection methods, and how individuals can request suspension of processing;
• prohibiting the third-party transfer of facial feature data under the opt-out model as provided for by the APPI; and
• allowing individuals to request suspension of use, even if the data was lawfully obtained.

3. Ensuring effective compliance with the APPI

The third issue identified through the review process of the APPI is the need for a better response to system or large-scale violations, both before and after such violations occur.

In the light of this, the PPC aims to first ensure the effectiveness of recommendations and orders, suggesting that emergency orders may be issued before a violation results in actual harm if there is a clear risk of significant infringement. The PPC also suggested to provide legal basis for, when a business fails to comply with an order, the PPC may be authorized to request cooperation from third parties, such as hosting providers or search engines to suspend access to services that facilitate continued non-compliant data processing.

In addition, it is considered to create a ‘surcharge system’, a new administrative fine system targeting serious or large-scale violations such as unlawful data transfers for economic gain or major data breaches. Under the APPI, administrative supervisory authorities over personal information handling business operators that have committed violations of the law include the authority to issue guidance and advice, recommendation, and orders. However, if a violating business operator discontinues the unlawful conduct after receiving a recommendation or order, no penalties will be imposed. Consequently, the operator may retain the economic benefits gained from the violation without facing any punitive consequences.

Therefore, the PPC suggested that the fine amount should be equal to the financial benefit obtained from the use of personal data in violation of the APPI, by multiplying for instance the sales by a certain rate, keeping in mind that this should not cause excessive loss either. To be noted that the PPC maintained this proposal although strong opposition has been expressed at hearings by stake holders at the relevant organizations following the publication of the interim report.

Another key proposition comes from the realisation that it is, in practice, complicated (not to say impossible) for victims of violation of the APPI to obtain rightful compensation, for reasons relating to proof or the amount of damages per victim. To address this issue, the PPC considers the introduction of an injunction mechanism allowing certified consumer organizations to request the cessation of unlawful processing practices. A collective damage recovery system is also under review, to enable compensation for data subjects in cases of mass data leaks.

Impact on businesses

Based on the content of the Proposal Draft, businesses who process such personal data are advised to review their internal systems to assess whether they may benefit from the relaxation of consent requirements and reporting obligations, and to prepare to amend the rules related to the processing of biometric data and children’ personal information, that are very likely to be enhanced. More specifically, it is necessary to examine whether the services collecting personal information are directed at individuals under the age of 16, to ensure that users are properly notified of the purposes of use, to review the methods by which consent is obtained, and to assess the design of personal information input interfaces and terms of use.

As additional requirements may be placed on businesses depending on future discussions or public comments to the Proposal Draft, it is recommended to closely monitor what kind of impact these changes will have, even prior to formal amendment of the law, and to consider establish an internal system to ensure alignment with the possible new rules.

Megumi Murakami | Shahzel Asghar

 

Asia | Legal update on Singapore Employment Law: key developments

Labor Market 4Q 2024[1]

On 19 March 2025, the Ministry of Manpower released the Labour Market Report for Q4 2024, which reflects the continued resilience and positive trajectory of Singapore’s labour market. Total employment expanded by 44,500, including 8,800 additional resident positions, thereby reversing the prior year’s contraction. Unemployment remained low and stable (1.9% overall; 2.8% among residents), while retrenchments declined to 13,020 for the full year. Notably, job vacancies rose to 77,500 in December, resulting in a ratio of 1.64 vacancies per unemployed person, indicative of a sustained tightness in labour market conditions. Resident employment gains were concentrated in high-skilled sectors such as financial services, healthcare, and information and communications. Meanwhile, the growth in non-resident employment moderated. Business sentiment remained positive, with a growing proportion of firms indicating intentions to increase headcount and wages in the first quarter of 2025.

I. Work Injury Compensation Act 2019: Workplace-related injuries maximum compensation will rise significantly in November 2025[2]

Work Injury Compensation Act 2019 (“WICA”) is an Act “to provide for the payment of compensation to employees for injury suffered arising out of and in the course of their employment and to platform workers for injury suffered arising out of and in the course of their provision of platform services for platform operators, and to regulate providers of insurance for liability”[3] under the WICA.

Important amendments to the WICA were announced by the Ministry of Manpower (“MOM”) in February 2024, set to come into effect in November 2025. These changes aim to adjust compensation limits in line with wage growth and rising healthcare costs, while maintaining a low-cost, efficient process for employees to seek compensation for work-related injuries and diseases:

• The maximum compensation for a workplace death will increase from S$225,000 to S$269,000.
• Compensation for workers suffering total permanent incapacity will rise from S$289,000 to S$346,000.

The WICA continues to provide compensation regardless of fault, with caps in place to limit large payouts for employers.

In addition to increasing the compensation thresholds, the MOM implemented in March 2024 new Workplace Safety Measures including compulsory safety training for CEOs (the Top Executive WSH Programme).

Employers are encouraged to review their WICA insurance coverage in advance of the November 2025 amendments, to ensure alignment with the revised compensation limits and related regulatory requirements, allowing adequate time for any necessary adjustments.

II. Measures from the National Wage Council Guidelines effective as of 1 January 2025[4]

The National Wage Council of Singapore (the “NWC”) convened between August and October 2024 to formulate wage guidelines for the period from 1 December 2024 to 30 November 2025.

The provisions of paragraph 10 of the 2024/2025 guidelines came into effect on 1 January 2025, as follows:

• It was provided that the monthly wage ceiling for contributions to the CPF would increase from SGD 6,800 to SGD 8,000 by 2026, in order to keep pace with wage growth. This increase is being implemented in phases to allow employers and employees time to adjust. The most recent increase, raising the ceiling to SGD 7,400, came into effect on 1 January 2025.
• As of 1 January 2025, employer CPF contributions for employees aged between 55 and 65 have increased by 0.5 percentage points. A transitional support measure, known as the CPF Transition Offset, was introduced to partially offset the rise in CPF contributions borne by employers for the year 2025.
• Employers are expected to take these CPF contribution increases into account when reviewing salary adjustments.

For further details, please refer to the following link to the guidelines: https://www.mom.gov.sg/-/media/mom/documents/press-releases/2023/annex-a—nwc-2023-2024-guidelines.pdf

III. Adoption of a New Bill on Workplace Fairness in Singapore[5]

Overview. In January 2025, Singapore passed a key piece of legislation aimed at strengthening protections for employees against workplace discrimination. The Workplace Fairness Bill (the “Bill”) is part of a two-phase legislative framework, with implementation expected in either 2026 or 2027.

Main objective. The Bill explicitly prohibits discriminatory practices in employment-related decisions, including:

• Recruitment,
• Dismissals,
• Performance assessments.

Protected characteristics include age, gender, pregnancy, family responsibilities, race, religion, nationality, and disabilities and mental health conditions.

Employer obligations. Employers will be required to establish internal mechanisms to:

• Handle employee complaints,
• Ensure the confidentiality of any procedures undertaken.

Application to small businesses. A five-year transitional period is planned for small businesses with fewer than 25 employees, to allow them time to comply with the new requirements.

Support measures. Several local organisations and HR professionals have already introduced support initiatives, including:

• Targeted training programmes,
• Practical tools to prevent discrimination,
• Efforts to enhance employee well-being in the workplace.

Complementarity with existing guidelines. The new legislation is designed to complement, rather than replace, the current Tripartite Guidelines on Fair Employment Practices.

This reform is expected to transform Singapore’s workplace culture by promoting fair employment practices and strengthening employee’s rights, while fostering an inclusive and respectful working environment.

IV. New Guidelines on Flexible Work Arrangement Requests[6]

As highlighted in our Q4 2024 newsletter, updates on Flexible Work Arrangements (“FWAs”) were anticipated. On 1 December 2024, the new guidelines came into effect, establishing the procedure for employees to formally submit requests for FWAs and requiring employers to review and respond to these requests appropriately.

Employers have to implement an internal process for handling such requests. They provide a framework for both parties to jointly assess three types of FWAs:

• Flexi-time: adjustable working hours,
• Flexi-load: a modifiable workload,
• Flexi-place: a flexible work location, such as telecommuting or remote work.

For more information, please refer to the guidelines available at the following link: https://www.mom.gov.sg/-/media/mom/documents/press-releases/2024/tripartite-guidelines-on-flexible-work-arrangement-requests.pdf

V. Update on Paid Shared Parental Leave Entitlements under the Child Development Co-Savings (Amendment) Bill – Effective 1 April 2025[7]

As noted in our Q4 2024 newsletter, from 1 April 2025, working parents are entitled to an additional six weeks of paid shared parental leave—on top of maternity leave—under the Child Development Co-Savings (Amendment) Bill (“CDCSAB”). This entitlement will increase to ten weeks from 1 April 2026.

As of 1 April 2025, the paternal leave entitlement for eligible fathers will also double from two to four weeks. The additional 2 weeks of government paid paternity leave (which employers currently have the option to offer on a voluntary basis) will be made mandatory. As such, eligible fathers will be entitled to 4 weeks of government paid paternity leave.

The CDCSAB introduced a new shared parental leave scheme that replaces the previous framework and provides additional paid leave on top of existing maternity and paternity entitlements. By default, these additional weeks are equally allocated between both working parents, though the allocation can be adjusted based on their respective caregiving needs.

To be eligible for shared parental leave, the following conditions must be met:

• The child must be a Singapore citizen; and
• The employee must provide their employer with at least four weeks’ notice before taking maternity, paternity, or shared parental leave, and should aim to inform their employer as early as possible upon confirmation of pregnancy.

VI. Coming into effect of the Platform Workers Act[8]

On 17 December 2024, the MOM announced the entry into force of the Platform Workers Act 2024 (“PWA”) as of 1 January 2025, following its adoption in September 2024.

The implementation of the PWA represents a major milestone in regulating digital platform work in Singapore and is expected to enhance the protection of platform workers, such as Grab or Gojek workers, in several areas, notably with regard to housing and retirement adequacy through the Central Provident Fund (“CPF”), by providing financial compensation in the event of a work injury, as well as by establishing a legal framework for representation. The new administrative and financial obligations, include mandatory registration, insurance compliance, payroll system adjustments to incorporate the new CPF contributions.

Additional information can be found via the link below: https://sso.agc.gov.sg/Act/PWA2024

Astrid Cippe | Charline Levasseur

[1] Ministry of Manpower, “Labour Market in 4Q 2024”, 19 March 2025.
[2] Ministry of Manpower, “Higher Compensation Limits Under the Work Injury Compensation Act”, 8 February 2024.
[3] Singapore’s Work Injury Compensation Act 2019.
[4] National Wage Council of Singapore, Guidelines 2024-2025.
[5] Singapore’s Workplace Fairness Act 2024, Bill No. 50/2024, November 2024; Ministry of Manpower, “Passing Of Workplace Fairness Bill Marks Next Step In Building Fair and Harmonious Workplaces”, 8 January 2025.
[6] Ministry of Manpower, “Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR)”, https://www.mom.gov.sg/employment-practices/good-work-practices/flexible-work-arrangements.
[7] Ministry of Social and Family Development, “Amendments to Child Development Co-Savings Act: Enhanced Paternity Leave and New Shared Parental Leave Scheme from 1 April 2025 to Strengthen Support for Working Parents”, 13 November 2024; Government-Paid Leave Portal, Shared Parental Leave (SPL), https://www.profamilyleave.msf.gov.sg/schemes/shared-parental-leave.
[8] Ministry of Manpower, “Commencement of Platform Workers Act from 1 January 2025”, 17 December 2024.

 

Our latest deals

LPA advises Trix Fund s.r.o. on acquisition of German cosmetics provider

LPA has advised Trix Fund s.r.o. on the successful acquisition of a German company active in the cosmetic and beauty products sector. The transaction highlights LPA’s cross-border advisory strength in the Private Equity and M&A space.
Dr. Leif Gösta Gerling | Matthias Krämer

 

LPA Law advised Leoni on the establishment of its new factory in Agadir

LPA Law advised the LEONI Group, a global leader in wiring systems for the automotive industry, on the setup of its new factory within the Souss-Massa Industrial Acceleration Zone (ZAI) in Agadir.

This facility, dedicated to the production of wiring systems for heavy-duty vehicles, powertrains, and off-road vehicles, represents an investment of over 20 million euros. The innovative plant emphasizes digitalization, energy efficiency, and sustainability, contributing to Morocco’s sustainable development goals.

Romain Berthon | Marc Veuillot

LPA Law advised the seller in the sale of the Logiprod logistics platform to BLS

LPA Law acted as legal counsel to the seller, RREEF Moroccan Explorer Fund I (MEF I), a Luxembourg-based investment fund affiliated with Deutsche Bank and specialized in real estate asset management, in the sale of 100% of the shares of Logiprod to Buildings & Logistic Services (BLS).

The transaction, which received approval from the Competition Council and the Foreign Exchange Office, amounted to over 125 million dirhams. Located in the Lkhayata region, the Logiprod logistics platform spans a land area of 110,000 m², including 22,000 m² of covered facilities, and serves a portfolio of major clients such as Pharma 5 Officiel, Dislog Group, and Transmed.

Romain Berthon | Marc Veuillot

Tokyo advised Veolia Japan on the acquisition of Zeeklite from ORIX Environmental Resources Management Corporation

LPA Tokyo advised Veolia Japan, a global company based in France providing comprehensive environmental services in three fields, water, waste treatment, and energy, on the acquisition of Zeeklite from ORIX Environmental Resources Management Corporation.
This acquisition allows Veolia Japan to expand its waste management services, offering end-to-end, fully integrated industrial waste management services from collection to final disposal, addressing the growing needs of Japan’s industrial sector.

Pascal Mages

 

Joiners & movers

Zineb Gaouane has joined LPA Law as a partner in the Casablanca office to strengthen our energy practice

With nearly twenty years of experience in business law, Zineb Gaouane perfectly complements the expertise of the Casablanca office, which can now rely on the Moroccan platform bringing together the largest number of senior specialists in the market, both in legal and tax advisory. Specializing in the energy sector (electricity, renewable energies, energy efficiency, green hydrogen, natural gas, hydrocarbons), infrastructure, mining, and sustainable development, she brings top-tier, unique expertise to support our clients in addressing energy challenges and the demands of the ecological transition. Discover her profile!

 

LPA Law appoints Clémence Legout as Partner and Head of the Restructuring Practice

Clémence Legout assists companies facing difficulties, as well as executives, shareholders, and creditors in the context of preventive (ad hoc mandate, conciliation) and judicial (safeguard, reorganization, liquidation) proceedings. She also advises candidates for the takeover of companies in difficulty.

Counsel at LPA Law since 2020, Clémence leads the Restructuring practice. She offers clients a comprehensive range of restructuring services, in synergy with the firm’s other areas of expertise, including M&A, employment law, financing, and real estate. She is also involved in cross-border matters in close collaboration with the firm’s international offices. Discover her profile!

 

Spotlight on success!

LPA Law recognized once again in the 2026 Edition of Best Lawyers in France!

Our LPA Law lawyers have once again been recognized in the 2026 edition of Best Lawyers in France across 19 practice areas!
The American Best Lawyers ranking is based on peer recommendations, evaluated by area of expertise and by country.
A sincere thank you to our peers for this recognition, and congratulations to our 33 ranked lawyers (Best Lawyers & Ones to Watch), including 6 newcomers this year!
Click here to view the full ranking.

 

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Disclaimer: This newsletter and its content are for information only and are not given as legal or professional advice.
They do not necessarily reflect all relevant legal provision with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.