What are labor laws?

Labor law refers to the vast body of law concerning all aspects of employment, from working conditions and pay to worker protections. For instance, the U.S. Trade Act of 1974 defines internationally recognized worker rights to include "acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health."

Labor laws vary by location. The laws in the United States will be distinct from those in Canada, Germany, or Mexico, for instance. Employers who hire employees internationally need to recognize the labor laws in the various countries in which they hire, ensuring compliance with diverse pieces of legislation.

What are employee labor laws?

Employee labor laws are regulations that define worker rights and employer responsibilities in the workplace. These laws govern everything from wages and working hours to safety standards and anti-discrimination protections.

Looking for specific details on how to hire compliantly around the world? Check out our hiring guides. (There are over 50!)

The variety of legislation falling under the broad umbrella of "labor laws" is enormous. Such laws may govern areas such as:

• Health and safety: Workplace protection standards

• Terms of employment: Contract conditions and job requirements

• Working hours: Maximum hours and break requirements

• Minimum wages: Fair compensation standards

• Working conditions: Physical and environmental workplace standards

• Health insurance: Medical coverage requirements

• Disability insurance: Protection for injured workers

• Paid time off: Vacation and sick leave entitlements

• Discrimination: Equal treatment protections

• Dismissal: Termination procedures and protections

• Trade unions: Collective bargaining rights

Examples of common labor laws

While labor laws are country-specific, they generally cover a few core areas to ensure fair and safe working conditions. Understanding these categories is the first step to building a compliant global team.

Common examples of labor laws include regulations related to:

• Wages and hours: This includes minimum wage requirements, rules for overtime pay, and the maximum number of hours an employee can work in a week. Minimum wage is a near-universal concept; a Pew Research Center study found that of 197 countries examined, 173 with some sort of generally applicable minimum-wage system.

• Workplace safety: These laws mandate that employers provide a safe environment, free from known hazards, and establish procedures to prevent accidents and injuries.

• Anti-discrimination: These laws protect employees from unfair treatment based on factors like age, gender, race, religion, or disability during hiring, promotion, and daily work.

• Employee benefits: This covers legally required benefits, such as paid time off, sick leave, parental leave, and contributions to social security or pension funds.

Worker rights and employer responsibilities

At their core, labor laws establish a clear balance of rights and responsibilities. For employers, this means recognizing the fundamental rights of your employees and upholding your duties to protect them.

Key employee rights typically include:

• The right to fair compensation for their work.

• The right to a safe and healthy work environment.

• The right to be free from discrimination and harassment, a standard ratified by more than 150 ILO member countries.

• The right to time off, including holidays and leave.

As an employer, your responsibilities are the other side of that coin. You are obligated to pay your team accurately and on time, maintain a safe workplace, ensure equitable treatment for all employees, and honor all statutory leave policies. Fulfilling these duties isn't just about compliance—it's about building trust and creating a positive work environment.

The importance of labor law compliance

So, what happens if you don't comply with labor laws? Employers face serious consequences, including steep financial penalties and legal action.

Consider worker misclassification violations. Companies can face back taxes, social security payments, criminal liability, and employee lawsuits. Your company's reputation takes a hit, too—and that makes attracting top talent much harder.

Here's the thing: as more companies hire globally, compliance becomes even more critical. While this requires extra effort, it's well worth it given the potential penalties. Luckily, there are tools available to help—like Oyster. By ensuring labor law compliance globally, Oyster helps companies avoid legal penalties and maintain good corporate ethics. A strong reputation in fair labor standards is also critical to attracting the best and the brightest in the workforce—the key to any company's success.

How international labor laws differ today

Modern international labor and employment laws vary significantly according to the country. For example, research shows that at least 90 countries have anywhere from two to several dozen minimum wages that can vary by region, industry, or occupation. Take something as seemingly simple as the number of hours workers are permitted to work every week, plus overtime pay. Local labor laws differ on this point.

For example, the standard working week in Brazil is 44 hours, while in Colombia it's 48 hours. Meanwhile, in Australia, the standard workweek is just 38 hours. International labor laws governing working hours are just one example of how disparate these rules can be.

Maternity leave around the world is another good example. The paid weeks of maternity leave vary drastically between countries. In Bulgaria, women get 58.6 weeks, for example, while in the Czech Republic, they get 28 weeks.

Simplify global labor law compliance with Oyster

Navigating the complexities of labor laws in different countries can feel overwhelming, but it doesn't have to block your growth. With the right partner, you can build a global team confidently, knowing that compliance is handled at every step.

Oyster's global employment platform is designed to make this easy. We provide the local expertise and automated workflows to help you hire, pay, and care for your team in over 180 countries—all while ensuring you meet local legal standards. Instead of spending months setting up entities or deciphering foreign regulations, you can focus on what matters most: finding and supporting great talent, wherever they are. Start hiring globally and turn compliance from a challenge into an advantage.