With advances in communication, infrastructure, and logistics technology, the world is getting smaller day by day. As a result, we are witnessing an unprecedented connection between different regions of the world, unobstructed by borders. This translates to businesses as well. Companies are looking to expand their operations that cover multiple regions to tap into these markets. This phenomenon is not borne of expansionist ideals but is the basis of survival for businesses as competition increases, resources become scarce, and risk becomes more eminent.

However, not every nation governs its people by the same rules and regulations. And, to protect the rights of their labor, laws for foreign businesses may change during operations. Before going ahead with an international venture, companies need to realize what they’re getting into and have to take necessary initiatives to exhibit labor law compliance, not just regionally but globally as well.

Time and time again, we’ve incorporated the use of technological means to find solutions for our problems. Here, too, companies can adhere to legislation by using a global labor law compliance platform. Let’s take a look at what kind of features it should have and why they’re necessary.

Legal Requirements

The primary function of a labor law compliance platform is outlining the legal requirements for employees. This includes the following concerns put forth by many judicial bodies that protect the rights of their workforce.

Employee Relations and Obligations

In developed countries of the world, employment in the formal sector is realized by a contractual agreement. It outlines the employee relations with a company, that is to say, the capacity in which a person will conduct their employment. Developing countries also have such requirements but may lack the judicial infrastructure for compliance. Nonetheless, it is best to remain informed of their statutory requirements concerning labor.

The contract highlights how the relationship between the employee and companies will come to be, how it is subject to change, and what acts may lead to termination. Additionally, it may include:

  • The duration of employment
  • Remuneration for employees’ services
  • Working hours
  • Leaves
  • Compensation
  • Medical benefits

This information is important because a country may allow different kinds of contracts with different requirements. Considering how contractual agreements limit freedom to conduct business, knowing what kind of contract best fits an employee won’t infringe on their rights and makes your workforce efficient.