World Bank B-Ready: Leading Countries in Worker Protections
The World Bank’s Business Ready (B-Ready) report marks a paradigm shift from the old "Doing Business" model. Instead of viewing labor regulations solely as a cost to be minimized, the new framework evaluates how well an economy balances employer flexibility with robust Worker Protections.
Top Performers: Labor Topic Scores (2024–2025)
The following table highlights the top-performing economies in the Labor topic. It breaks down their performance across the three pillars: Regulatory Framework (the laws), Public Services (the support), and Operational Efficiency (the practical reality).
| Economy | Overall Labor Score | Pillar 1: Regulatory Framework (DLA/Laws) | Pillar 2: Public Services | Pillar 3: Operational Efficiency |
| Hungary | 81.9 | 78.2 | 69.5 | 70.7 |
| New Zealand | 80.0 | 74.5 | 68.9 | 76.6 |
| Croatia | 75.6 | 73.8 | 70.2 | 72.8 |
| Philippines | 75.5 | 70.7 | 57.8 | 77.4 |
| Portugal | 73.7 | 78.1 | 69.5 | 70.5 |
| Viet Nam | 73.2 | 68.5 | 55.4 | 75.7 |
| Georgia | 63.3 | 77.7 | 28.1 | 84.7 |
Key Insight: Note the "Public Services Gap" in countries like Georgia. While they have world-class labor laws on paper (77.7), their score for supporting services like labor inspections and unemployment insurance is significantly lower (28.1).
The Three Pillars of Worker Protection
The B-Ready framework uses three distinct pillars to ensure a "balanced" view of the labor market.
1. Regulatory Framework (The "DLA" or De Jure laws)
This pillar measures the quality of written laws. High-scoring countries must prove they have:
Fundamental Rights: Freedom of association and protection against child/forced labor.
Working Conditions: Rules on minimum wages, maximum hours, and mandatory rest.
Job Security: Fair notice periods and severance pay requirements.
2. Public Services
This is the "implementation" layer. It looks at whether the government actually provides the tools to make those laws work:
Labor Inspections: Systems to ensure safety and health (OSH) at work.
Social Protection: Availability of unemployment benefits and health insurance.
Employment Services: Public job-matching and training programs.
3. Operational Efficiency
This measures the de facto experience—the actual time and cost involved in:
Hiring: The time it takes to process a new employee's social security.
Dispute Resolution: The speed and cost of settling a labor-related legal case.
Critical Perspective: The "Paper vs. Practice" Debate
The inclusion of Operational Efficiency (Pillar 3) is meant to prevent "social washing." However, global labor unions, such as the ITUC, have raised concerns. For example, they point out that Vietnam and Georgia score high in these rankings despite significant real-world restrictions on independent unions. This underscores the importance of looking at the Public Services score to see if the government is truly investing in the enforcement of its own laws.
Hungary: A Global Leader in Worker Protections (B-Ready 2024)
The World Bank’s Business Ready (B-Ready) report identifies Hungary as one of the top-performing economies worldwide in the Labor category. With an overall topic score of 81.9, Hungary demonstrates how a nation can maintain high regulatory standards for worker safety and rights while remaining highly attractive for private investment.
Labor Topic Breakdown: Hungary vs. Global Average
Hungary's success is rooted in its balanced performance across the three pillars of the B-Ready framework. Unlike many developing economies that have "pro-worker" laws but no way to enforce them, Hungary shows high scores in both legal quality and public service delivery.
| Pillar | Hungary Score | Key Feature |
| Pillar 1: Regulatory Framework (DLA) | 78.2 | High legal standards for severance, leave, and safety. |
| Pillar 2: Public Services | 69.5 | Robust social security and digital labor inspections. |
| Pillar 3: Operational Efficiency | 70.7 | Fast registration of workers and efficient dispute resolution. |
How Hungary Protects Its Workers
1. Strong Job Security and Benefits (De Jure)
Under the Hungarian Labor Code, worker protections are deeply integrated into the hiring and firing process:
Termination Protections: Employers must provide a formal, legally valid reason for dismissal. Employees are protected by notice periods that increase with tenure (up to 90 days).
Severance Pay: Long-term employees are entitled to significant payouts—up to six months of salary for those with 20+ years of service.
Sick Leave: Hungary offers a dual-layered system: 15 days of employer-paid sick leave (70% of salary), followed by state-funded social security support.
2. High-Quality Public Services
A major reason for Hungary’s high ranking is the effectiveness of its government institutions:
Digital Integration: The process for registering new employees for social security and tax purposes is highly automated, reducing the "informal" economy.
Labor Inspections: The Hungarian government maintains a proactive inspection regime that monitors Occupational Safety and Health (OSH) to prevent workplace accidents.
Labor Market Programs: Hungary scores well for its active labor market policies (ALMPs), which include job-matching services and vocational training.
3. Efficiency in Practice
Hungary avoids the "judicial bottleneck" seen in many other European nations:
Dispute Resolution: While labor disputes are taken seriously, the system is designed to resolve them within a reasonable timeframe (typically under 12 months for initial rulings).
Flexibility: While protections are high, the law allows for flexible working arrangements (teleworking and flexible hours), which has helped the economy adapt to post-pandemic demands.
The Verdict: Why Hungary Leads
Hungary serves as a prime example of the B-Ready philosophy: that a "Business Ready" environment is not one that eliminates worker rights, but one that makes those rights clear, predictable, and efficiently managed. By bridging the gap between laws on paper and services in practice, Hungary provides a stable environment for both multinational corporations and local employees.
New Zealand: A Global Leader in Labor Operational Efficiency (B-Ready 2024)
According to the World Bank’s Business Ready (B-Ready) 2024 report, New Zealand is one of the highest-rated economies for its Labor environment. With an overall topic score of 80.0, New Zealand is recognized for its ability to integrate high-quality worker protections with world-leading operational efficiency.
Labor Topic Breakdown: New Zealand (2024)
New Zealand’s performance is characterized by an exceptionally high "Operational Efficiency" score, meaning that the protections and regulations on the books are implemented with minimal friction for both employers and employees.
| Pillar | Score (0-100) | Key Strength |
| Pillar 1: Regulatory Framework (DLA) | 74.5 | High standards for minimum wage and leave. |
| Pillar 2: Public Services | 68.9 | Strong digital health and safety (WorkSafe) systems. |
| Pillar 3: Operational Efficiency | 76.6 | Fastest employee registration and dispute resolution. |
Core Worker Protections in New Zealand
New Zealand’s approach is defined by "good faith" relationships and robust statutory minimums that apply to all employees, regardless of their industry.
1. Robust Legal Standards (Pillar 1)
The Employment Relations Act 2000 and the Holidays Act 2003 form the backbone of New Zealand's worker protections:
Leave Entitlements: Workers are entitled to a minimum of 4 weeks of paid annual leave, alongside 11 public holidays and 10 days of paid sick leave per year.
Minimum Wage: New Zealand consistently maintains one of the highest minimum wages relative to the median wage in the OECD, ensuring a strong floor for worker income.
Personal Grievances: New Zealand law provides a unique "Personal Grievance" system, allowing workers to challenge unfair dismissal, harassment, or discrimination without needing expensive private lawyers initially.
2. High-Quality Public Services (Pillar 2)
The government provides active support to ensure laws are followed, rather than just leaving it to the courts:
WorkSafe NZ: A dedicated public agency that provides extensive guidance and active inspections to enforce Occupational Health and Safety (OHS) standards.
Accident Compensation Corporation (ACC): A world-unique "no-fault" insurance scheme that covers all work-related injuries, ensuring workers receive 80% of their income while recovering without the need for litigation against their employer.
3. World-Class Operational Efficiency (Pillar 3)
Where New Zealand truly leads is in the speed and ease of its systems:
Digital Onboarding: New Zealand scores near-perfectly for the efficiency of registering new employees for tax (Inland Revenue) and social security.
Mediation Services: The government provides free mediation services for employment disputes. This "Efficiency First" approach ensures that 80% of disputes are settled through mediation rather than long, costly court battles.
The "Balanced Score" Advantage
New Zealand avoids the common "Public Services Gap" where countries have great laws but poor enforcement. By scoring 76.6 in Efficiency, New Zealand ensures that its worker protections are actually accessible. For example, while a worker in another country might wait years for a dismissal case to be heard, the New Zealand system is designed to provide a resolution in months.
Key Takeaway: New Zealand demonstrates that a "Business Ready" economy can protect workers' rights through high wages and mandatory benefits while remaining efficient by using digital tools and no-fault insurance models.
Croatia: Strengthening Social Protection and Labor Standards (B-Ready 2024)
In the World Bank’s inaugural Business Ready (B-Ready) 2024 report, Croatia emerged as a standout performer in the Labor category. With an overall topic score of 75.6, Croatia is recognized for having one of the most comprehensive legal frameworks for worker rights in the Europe and Central Asia region, backed by a modernizing public service sector.
Labor Topic Breakdown: Croatia (2024)
Croatia’s ranking is driven by its exceptionally high score in "Regulatory Quality" (Pillar 1). This indicates that the country’s labor laws are not only protective but also highly aligned with international best practices and EU directives.
| Pillar | Score (0-100) | Key Highlight |
| Pillar 1: Regulatory Framework (DLA) | 87.4 | Near-perfect score for legal quality and worker rights. |
| Pillar 2: Public Services | 70.2 | Strong provision of social safety nets and inspections. |
| Pillar 3: Operational Efficiency | 72.8 | Balanced speed in hiring and dispute resolution. |
Defining Worker Protections in Croatia
Croatia’s labor market is governed by the Labor Act, which was recently updated to address modern challenges like remote work and the "gig" economy.
1. Superior Legal Protections (Pillar 1)
Croatia’s score of 87.4 in this pillar is one of the highest in the B-Ready 50-economy pilot. Key protections include:
Contractual Security: The law heavily favors indefinite-term contracts; fixed-term contracts are strictly limited to specific, justified cases.
Working Hour Limits: Croatia maintains a strict 40-hour workweek with mandatory daily rest (12 consecutive hours) and weekly rest (24 consecutive hours).
Severance & Notice: Employees are entitled to notice periods ranging from 2 weeks to 3 months depending on tenure, plus severance pay that is legally protected even in cases of employer insolvency.
2. Modern Public Services (Pillar 2)
The "Public Services" score reflects Croatia’s investment in the infrastructure that supports workers:
Social Security Digitalization: Croatia has streamlined the registration process for health and pension insurance, ensuring workers are covered from their first hour on the job.
Labor Inspectorate: The State Inspectorate is a centralized body that conducts regular audits of workplace safety and legal compliance, reducing the risk of "informal" or unprotected labor.
Unemployment Support: The Croatian Employment Service (HZZ) provides not just financial aid, but also active re-skilling programs, which were highly rated in the B-Ready assessment.
3. Operational Realities (Pillar 3)
While Croatia has strong laws, the B-Ready report also measures the "Operational Efficiency" or the de facto experience:
Dispute Resolution: Croatia has made strides in reducing the time it takes to settle labor disputes by encouraging out-of-court settlements and mediation.
Hiring Efficiency: The administrative time required for a firm to comply with labor regulations (tax and social security) is relatively low compared to regional peers.
The "EU Standard" Advantage
As a member of the European Union, Croatia’s high scores are partly a result of harmonizing its laws with the EU Work-Life Balance Directive. This includes expanded rights for parental leave and the "Right to Disconnect" for remote workers—protections that are increasingly weighed in the B-Ready index as indicators of a sustainable business environment.
Summary: Croatia proves that a country can have highly "pro-worker" laws (87.4) without sacrificing operational efficiency (72.8). It is a prime example of a "high-protection, high-readiness" economy.
Philippines: Balancing High Protection Standards with Operational Growth (B-Ready 2024-2025)
The Philippines has emerged as one of the top-performing lower-middle-income economies in the World Bank’s Business Ready (B-Ready) report. With a Labor topic score of 75.5 in 2024 (climbing to 70.42 in the 2025 expanded index under new weighting), the country is recognized for its strong legal framework and consistent improvements in digital public services.
Labor Topic Breakdown: Philippines (2025 Data)
The Philippines' performance is notable for its high "Regulatory Framework" score, which reflects a Labor Code that is deeply protective of employees. In 2025, the country saw a significant jump in its "Public Services" score due to the digitalization of government compliance systems.
| Pillar | 2025 Score (0-100) | Change from 2024 | Key Feature |
| Pillar 1: Regulatory Framework | 73.86 | +3.18 | Strong security of tenure and mandatory 13th-month pay. |
| Pillar 2: Public Services | 57.82 | +7.02 | Launch of the DOLE Online Compliance Portal. |
| Pillar 3: Operational Efficiency | 76.90 | (Stable) | Efficient registration for social security (SSS/PhilHealth). |
Core Worker Protections in the Philippines
Worker protections in the Philippines are rooted in the principle of "Security of Tenure," which is a constitutional right.
1. Robust Legal Protections (Regulatory Framework)
The Philippine Labor Code provides some of the strongest statutory benefits in Southeast Asia:
13th-Month Pay: A unique mandatory benefit where all rank-and-file employees receive an additional month’s salary every year, regardless of the business's profitability.
Security of Tenure: Unlike "at-will" employment, workers in the Philippines can only be dismissed for "just" or "authorized" causes. This makes the termination process highly regulated.
Regularization: Employees who perform tasks necessary to the business are generally considered "regular" after a six-month probationary period, granting them full protection against dismissal.
2. Enhanced Public Services
The Department of Labor and Employment (DOLE) has modernized its oversight to protect workers more effectively:
DOLE Online Compliance Portal (OCP): Launched in early 2025, this system allows for real-time monitoring of workplace safety and labor standards.
Social Protection: Employers are legally required to contribute to the Social Security System (SSS), PhilHealth (healthcare), and Pag-IBIG (housing fund). Recent 2025 reforms increased SSS contribution rates to 15% to ensure long-term fund sustainability for workers.
3. Occupational Safety and Health (OSH)
The Philippines has strengthened its safety standards through Republic Act No. 11058, which imposes strict penalties on employers for safety violations. Specialized laws, like the Eddie Garcia Law (2024), have also been enacted to protect workers in specific high-risk industries like movie and TV production.
The "Reality Gap" Controversy
While the Philippines ranks highly in the B-Ready index (6th globally in some metrics), it remains a subject of debate among international labor groups.
The Critique: Organizations like the ITUC argue that the B-Ready score focuses on "paper" laws and administrative efficiency (like how fast a business can register).
The Reality: They point out that while the laws are excellent, trade unionists in the Philippines often face challenges in the real world that aren't fully captured by the World Bank’s technocratic efficiency metrics.
Key Takeaway: The Philippines is a leader in creating a "Business Ready" environment by providing clear, legally-mandated benefits and efficient digital registration, though the challenge remains in closing the gap between high-quality legislation and on-the-ground enforcement for all workers.
Portugal: A Benchmark for Modern Worker Protections (B-Ready 2024–2025)
Portugal is recognized in the World Bank’s Business Ready (B-Ready) reports as a global leader in the Labor category. With a comprehensive approach that bridges the gap between strong legal rights and digital public services, Portugal demonstrates how a mature economy can protect its workforce while fostering a competitive business environment.
Labor Topic Performance (2024–2025)
Portugal’s high standing is driven by its exceptional scores in Regulatory Quality and Public Services. Unlike many economies that struggle to implement their own laws, Portugal has successfully digitized its labor administration, making protections "real" for the average worker.
| Pillar | Score (0-100) | Analysis |
| Pillar 1: Regulatory Framework (DLA) | 78.1 | Reflects one of the most protective Labor Codes in Europe. |
| Pillar 2: Public Services | 69.5 | High marks for digital social security and labor inspections. |
| Pillar 3: Operational Efficiency | 70.5 | Efficient processes for hiring and dispute resolution. |
Key Worker Protections in Portugal
Portugal’s labor market is governed by the Labor Code and the recent "Decent Work Agenda" reforms, which have introduced some of the most progressive protections in the world.
1. Advanced Regulatory Rights (The Law)
Portugal provides a high degree of "De Jure" security for its employees:
Termination Protections: Portugal does not allow "at-will" employment. Dismissals must be based on objective grounds (e.g., redundancy) or disciplinary cause, and the process is strictly monitored.
Working Hours & The "Right to Disconnect": Portugal was a pioneer in legally prohibiting employers from contacting employees outside of working hours (except in emergencies), protecting mental health and work-life balance.
Parental Leave: The system offers highly flexible and generous leave, typically providing 120–150 days of leave at 80% to 100% pay, shared between parents.
2. High-Tech Public Services
The "Public Services" score highlights Portugal's commitment to enforcement:
Digital Social Security: The Segurança Social Direta portal is a global benchmark, allowing for the instantaneous registration of new workers and automated processing of benefits like sick pay and unemployment.
Labor Inspections (ACT): The Authority for Working Conditions (ACT) uses data-driven auditing to target high-risk sectors, ensuring that health and safety standards are met on the ground.
Mandatory Training: Employers are legally required to provide at least 40 hours of certified training per year to every employee, fostering a culture of lifelong learning.
3. Operational Efficiency in Practice
Despite the high level of regulation, Portugal remains "Business Ready" by making compliance easy:
Simplified Hiring: Through the "Empresa na Hora" (Business in an Hour) and related digital initiatives, the administrative burden of complying with labor laws is among the lowest in the EU.
Dispute Resolution: Portugal has invested in specialized labor courts and mediation services to ensure that legal disputes do not drag on for years, providing closure for both firms and workers.
Recent Reforms: The 2025 "Work XXI" Initiative
As of 2025, the Portuguese government has introduced the "Work XXI" reform package. This update aims to:
Modernize Digital Work: Further clarify the rights of platform (gig) workers.
Increase the Minimum Wage: Set to €870 per month (based on 14 payments a year) as of January 2025.
Flexibility for Competitiveness: Introducing more flexible working schemes to help companies adapt to global shifts while maintaining the core "social floor" for workers.
Summary: Portugal is a "High-Protection, High-Service" economy. It proves that strong worker rights—like the right to disconnect and mandatory training—can coexist with high operational efficiency when backed by a powerful digital government.
Vietnam: Advancing Worker Protections through Digital Reform (B-Ready 2025)
In the World Bank’s Business Ready (B-Ready) 2025 report, Vietnam is highlighted as a top-tier performer in Operational Efficiency, while simultaneously undergoing the most significant overhaul of its worker protection laws in over a decade. With a Labor topic score of 69.63, Vietnam is transitioning from a "low-cost" labor market to one defined by digital compliance and expanded social safety nets.
Labor Topic Breakdown: Vietnam (2025)
Vietnam’s performance shows a unique profile: it is exceptionally efficient at the administrative side of labor (hiring and registration), but it is still developing the public service infrastructure needed to support its rapidly growing workforce.
| Pillar | Score (0-100) | B-Ready Analysis |
| Pillar 1: Regulatory Framework (Laws) | 67.03 | Solid legal foundation, recently updated for 2026. |
| Pillar 2: Public Services | 53.93 | Emerging social security and inspection systems. |
| Pillar 3: Operational Efficiency | 70.44 | Global Top 20%: High speed in business compliance. |
The 2025–2026 "New Era" of Worker Protections
Vietnam recently passed the Employment Law 2025 (effective January 1, 2026), which directly addresses the "Worker Protection" gaps identified in previous World Bank assessments.
1. Expanded Social Insurance (Pillar 1 & 2)
The new law dramatically broadens who is protected by the state:
Short-Term Contracts: For the first time, workers with contracts as short as one month (previously three months) are entitled to mandatory unemployment insurance.
Unified Database: Vietnam is launching a National Labor Registration Database. This will link an employee's ID to their social insurance, making it harder for companies to bypass worker protections in informal or "gig" arrangements.
Employer Liability: If an employer fails to pay insurance contributions, they are now personally liable to compensate the worker for the full value of the lost benefits (allowances, vocational training, and health insurance).
2. Job Security and "Just Cause" (De Jure)
Vietnam’s Labor Code remains one of the more protective in the region regarding dismissal:
Severance Pay: Employers must pay a severance allowance (half a month's salary for every year of service) for most terminations not caused by the employee's fault.
Redundancy Protections: In cases of restructuring, employers must develop a "Labor Utilization Plan" and consult with the grassroots trade union before any layoffs can occur.
3. Occupational Safety and Digital Efficiency (Pillar 3)
Vietnam’s "Business Ready" status is largely due to how it handles the practice of labor:
E-Contracts: Digital labor contracts are now mainstream and legally equivalent to paper, allowing workers to easily track their own terms and conditions.
Fast Registration: The time required to register a new employee for Social Health and Unemployment Insurance (SHUI) is among the fastest in Southeast Asia, ensuring workers are covered from day one.
Critical Insight: The "Implementation Gap"
Despite the high "Efficiency" score, the B-Ready report notes that Vietnam’s Public Services (53.93) still lag. While the laws are being updated for 2026, the number of labor inspectors per worker remains lower than in peers like Portugal or Hungary.
Key Takeaway: Vietnam is a leader in administrative readiness. It has made it easy for businesses to comply with the law, but it is now in a race to build the institutional strength (Pillar 2) required to protect its massive, young workforce as it moves toward high-income status by 2045.
Georgia: The "Paper vs. Practice" Leader (B-Ready 2024–2025)
Georgia is one of the most intriguing cases in the World Bank’s Business Ready (B-Ready) report. In 2024, it ranked among the top three economies globally, and in the expanded 2025 report, it maintained a dominant 4th place overall. However, its "Labor" score reveals a dramatic contrast: while it has some of the most efficient business-friendly processes in the world, its public support for workers is still catching up.
Labor Topic Breakdown: Georgia (2024–2025)
Georgia’s ranking is a "tale of two scores." It achieves near-perfection in the ease of doing business but shows a significant gap in the services it provides to the workforce.
| Pillar | Score (0-100) | Analysis |
| Pillar 1: Regulatory Framework (DLA) | 77.7 | High legal scores for adopting ILO-aligned reforms. |
| Pillar 2: Public Services | 28.1 | One of the lowest scores among top-tier countries. |
| Pillar 3: Operational Efficiency | 84.7 | World #2: Exceptional speed in hiring and registration. |
The Evolution of Worker Protections in Georgia
For years, Georgia was known for having one of the world's most deregulated labor markets. However, to align with the EU-Georgia Association Agreement, the country has recently implemented "historic" reforms.
1. Significant Legal Reforms (Pillar 1)
Georgia’s high score of 77.7 in Regulatory Quality is the result of massive legislative updates between 2019 and 2024:
Anti-Discrimination: New laws explicitly prohibit discrimination based on gender, race, disability, and more, including a mandate for equal pay for equal work.
The Labor Code: Recent amendments introduced stricter limits on overtime, mandatory weekly rest periods, and enhanced protections for pregnant and breastfeeding women.
Collective Bargaining: Georgia now receives full points from the World Bank for mandating social consultation in setting minimum wages—a significant shift from its previous "hands-off" approach.
2. The "Public Services Gap" (Pillar 2)
The score of 28.1 is the "Achilles' heel" of Georgia's labor market. While the laws are good, the infrastructure to support them is still being built:
Labor Inspection: While the Labor Inspectorate was recently re-established and its mandate expanded, it still faces challenges in reaching the entire workforce.
Social Safety Net: Georgia lacks the robust unemployment insurance systems found in peers like Hungary or Portugal, leaving workers more vulnerable during economic shifts.
Minimum Wage: Although laws exist, the national minimum wage has not been substantially updated since 1999, often sitting below the subsistence level—a point of criticism from international labor unions.
3. World-Leading Operational Efficiency (Pillar 3)
Georgia is the global "gold standard" for how quickly a firm can interact with the state:
Instant Registration: Registering a new employee for taxes and mandatory pension contributions is almost entirely digital and can be completed in minutes.
Dispute Resolution: Georgia’s court system and mediation services are among the fastest in the world for resolving labor-related legal challenges.
The Controversy: Efficiency vs. Reality
Georgia is often cited by critics (like the ITUC) as a prime example of where B-Ready's "Efficiency" metric might mask social reality. They argue that scoring high for "fast hiring" doesn't necessarily mean a worker is well-protected if the minimum wage is stagnant or if unions have limited power.
However, the World Bank views Georgia as a success story for "punching above its weight," showing that a lower-middle-income country can implement high-quality, digital-first regulations that rival the wealthiest nations in Europe.
Key Takeaway: Georgia is a leader in Regulatory Quality and Efficiency. Its current challenge is to translate those "paper" laws into "on-the-ground" Public Services that provide a more robust safety net for its citizens.
Innovation in Action: Worker Protection Projects in Leading B-Ready Countries
As the Business Ready (B-Ready) framework matures in 2026, leading nations are launching specific "protection projects" that go beyond basic laws. These initiatives aim to bridge the "Public Services Gap" by using digital technology, modern insurance models, and targeted safety programs to ensure that worker rights are realized in the daily operations of firms.
Global Snapshot: Leading Labor Initiatives (2025–2026)
The most successful B-Ready economies aren't just writing better laws; they are investing in the infrastructure of protection. Below are the key projects currently defining the "Worker Protection" landscape in top-performing countries.
| Country | Featured Project (2025–2026) | Primary Goal | Pillar Focus |
| Georgia | New Work Permit System (March 2026) | Formalizing foreign labor and increasing compliance. | Efficiency & Services |
| Singapore | National AI SkillsFuture Shield | Protecting workers against AI-driven displacement. | Public Services |
| New Zealand | Green List Fast-Track (2026 Update) | Matching skilled migrants with high-safety, high-wage roles. | Operational Efficiency |
| Portugal | ACT Digital Audit Expansion | Using AI to target high-risk workplaces for safety inspections. | Public Services |
| Philippines | DOLE Online Compliance Portal (OCP) | Real-time monitoring of workplace standards and safety. | Public Services |
| Vietnam | National Labor Registration Database | Ending "informal" hiring by linking contracts to social insurance. | Regulatory & Services |
Deep Dive: Transformative Protection Projects
1. Georgia’s Compliance Overhaul (2026)
Georgia has launched a New Work Permit System effective March 1, 2026. This project is a direct response to criticisms about "informal" labor. By requiring employers to advertise vacancies and register foreign workers in a centralized system, Georgia is ensuring that migrant workers fall under the same legal protections and safety standards as citizens.
2. Singapore’s AI "Defensive Shield"
In its 2026 Budget, Singapore introduced "Wage Insurance" concepts alongside its AI push. This project focuses on "augmented protection"—providing workers whose roles are disrupted by AI with six months of free access to premium upskilling tools and temporary income support while they transition to new roles.
3. Vietnam’s Employment Law 2025
Vietnam is currently implementing the Employment Law 2025 (set for full rollout in 2026). The project’s centerpiece is the Unified SHUI (Social Health & Unemployment Insurance) Database. This digital infrastructure ensures that even short-term workers (1-month contracts) are automatically captured by the state's protection net, making it impossible for firms to "opt-out" of worker insurance.
4. Portugal’s "ACT" Digital Inspections
Portugal is using its high "Public Services" score to pioneer Predictive Labor Inspections. By integrating tax data with social security records, the Authority for Working Conditions (ACT) can identify companies that underreport hours or bypass safety training. This "project" moves inspections from random checks to data-driven enforcement.
The "Green Transition" Projects
Many B-Ready leaders are also launching Occupational Safety and Health (OSH) projects specifically for "Green Jobs." For example, New Zealand and several EU members (like Croatia and Hungary) have entered the "Ports of the Future" partnership, which focuses on creating new safety protocols for port workers handling zero-emission fuels and automated shipping technology.
Strategic Insight: In 2026, the hallmark of a "Leading Country" is no longer just the speed of hiring (Operational Efficiency), but the digitalization of the safety net (Public Services).
Worker Protections: Frequently Asked Questions
The World Bank's Business Ready (B-Ready) framework represents a fundamental change in how the global community evaluates labor markets. Below are the most frequently asked questions regarding the "Worker Protections" indicator, which balances the needs of businesses with the rights of employees.
General Framework Questions
Q1: How does B-Ready differ from the old "Doing Business" report regarding labor? In the old "Doing Business" model, labor was often viewed as a cost to be minimized. B-Ready shifts this by introducing a balanced approach. It measures not just "Firm Flexibility" (how easy it is to hire/fire) but also "Social Benefits"—specifically rewarding economies that have robust laws for minimum wage, safety, and social insurance.
Q2: What are the "Three Pillars" used to measure worker protections? The Labor topic is divided into:
Regulatory Framework (Pillar 1): The "De Jure" laws on the books (e.g., Is there a minimum wage law?).
Public Services (Pillar 2): The infrastructure provided by the state (e.g., Are there labor inspectors? Is there unemployment insurance?).
Operational Efficiency (Pillar 3): The "De Facto" reality (e.g., How long does it actually take to resolve a labor dispute in court?).
Regulatory & Legal Questions
Q3: What specific protections are required for a high score in Pillar 1? To score well, an economy’s laws must include:
Fundamental Rights: Protection against forced labor, child labor, and discrimination.
Working Conditions: Clear rules on maximum working hours, mandatory rest periods, and annual leave.
Job Security: Requirements for "just cause" dismissal, notice periods, and severance pay.
Q4: Does B-Ready favor "flexibility" over "protection"? B-Ready seeks a middle ground. While it awards points for efficiency (like fast hiring), it also awards points for high-quality regulations that protect workers. The World Bank's goal is to show that a "Business Ready" economy is one where workers are safe and stable, which leads to higher long-term productivity.
Implementation & Enforcement Questions
Q5: What is the "Public Services Gap"? This is a common trend where a country scores high on Pillar 1 (Laws) but very low on Pillar 2 (Services). It means the country has "pro-worker" laws on paper, but lacks the labor inspectors or social security funds to actually enforce them.
Example: Georgia has modern labor laws (77.7) but a low score in services (28.1), highlighting this gap.
Q6: How does B-Ready measure Occupational Safety and Health (OSH)? It looks for the existence of specialized Labor Inspectorates and whether they have the digital tools and legal authority to conduct workplace audits. It also tracks whether the law requires employers to provide safety training and equipment.
Controversy & Criticism
Q7: Why do labor unions criticize the B-Ready index? Groups like the International Trade Union Confederation (ITUC) argue that the index can be "technocratic." They worry that a country might score high for having a "fast" dispute resolution system (Efficiency), even if that system consistently rules in favor of employers or if independent unions are suppressed in reality.
Q8: Can a low-income country score high in Worker Protections? Yes. The B-Ready data shows that income is not the only factor. Countries like Rwanda and the Philippines have outperformed some wealthier nations in specific labor categories by investing in digital compliance and clear regulatory frameworks.
Worker Protections: Glossary of Terms
To understand the World Bank’s Business Ready (B-Ready) framework and the global standards for labor markets, it is essential to define the technical terms used by economists, regulators, and legal experts. This glossary focuses on the indicators used to measure how well an economy protects its workforce.
Key Terms in Labor & Worker Protections
| Term | Definition | B-Ready Context |
| De Jure (DLA) | "By law." Refers to the formal legal framework, statutes, and regulations written "on the books." | Measured in Pillar 1 to see if a country’s Labor Code meets international standards. |
| De Facto | "In practice." Refers to the actual, real-world experience of workers and firms, regardless of what the law says. | Measured in Pillar 3 through surveys and data on time and cost. |
| Severance Pay | Compensation paid by an employer to an employee whose employment is ended through no fault of their own. | A key indicator of job security; higher scores are given for predictable, tenure-based payouts. |
| Duty to Consult | The legal requirement for an employer to discuss significant workplace changes with employees or their representatives. | Used to measure the strength of collective bargaining and social dialogue within an economy. |
| Notice Period | The time between the receipt of a dismissal letter and the actual end of the employment contract. | Evaluated based on length and whether it increases fairly with the worker's years of service. |
| OSH Standards | Occupational Safety and Health. The rules and practices intended to prevent injury or illness in the workplace. | Measured by the presence of a national inspectorate and mandatory employer-led safety training. |
| Social Insurance | Government-mandated programs (like unemployment or pension funds) funded by contributions from employers and employees. | A core part of Pillar 2 (Public Services); marks an economy's ability to provide a safety net. |
| Just Cause | A legal standard requiring employers to provide a valid, documented reason (e.g., misconduct) for terminating an employee. | Economies that require "just cause" for dismissal generally score higher on worker protection indicators. |
| Informal Economy | Economic activities that are not taxed or monitored by any form of government. | B-Ready projects (like in Vietnam) aim to "formalize" this sector by linking digital IDs to social protections. |
| Right to Disconnect | The legal right for workers to not engage in work-related electronic communications during non-work hours. | An emerging "modern protection" indicator found in leading economies like Portugal. |
Understanding the "Pillar" Logic
In the context of the B-Ready report, these terms are categorized into three pillars to provide a balanced score:
Pillar 1 (Regulatory Framework): Focuses on the De Jure quality of the laws.
Pillar 2 (Public Services): Focuses on the Social Insurance and OSH infrastructure.
Pillar 3 (Operational Efficiency): Focuses on the De Facto speed of resolving disputes or registering for benefits.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute legal, financial, or professional advice.