Every country has its own labor laws covering everything from minimum wage and union representation to pension and parental leave. Some countries offer workers a great deal of protection, others … not so much.
These eight countries are leading the way in providing strong worker protections governing working conditions, legal rights, and benefits.
Key takeaways:
- Labor laws can cover a variety of workers’ rights, including working hours, minimum wage, parental leave, and more.
- While every country’s employment laws differ, some countries have unique requirements that international employers must abide by, such as French employees’ “right to disconnect.”
- Partnering with an Employer of Record like RemoFirst simplifies international hiring because we’re experts in employment law across the globe.
1. Norway
All three (four, if you count Finland) Scandinavian countries are on this list because the region is very supportive of workers and has many strong labor laws in place to protect them.
In Norway, the average employee works 36 to 38 hours per week, but employees have the right to work fewer hours due to health or welfare reasons. Employers also generally allow employees to arrange for flexible working hours.
While there’s no national minimum wage, specific labor sectors — including building, agriculture, and hotel and tourism — have their own minimum wages. Employees who work overtime are entitled to receive a minimum of 40% more than their standard pay for those additional hours.
The country’s Holiday Act provides for 25 days of paid annual leave to give employees a chance to relax and unwind.
Norway also provides generous parental leave policies. Parents can choose between 49 weeks at full pay or 59 weeks of leave at 80% pay following the birth of a child. It applies to both parents and can’t be changed once leave begins. Adoptive and foster parents have similar rights for children under the age of 15.
Each parent is also entitled to one additional year of leave for each birth, which must be taken directly after the first year.
Employees who are too ill to work are entitled to up to 52 weeks of sick leave. The employer pays 100% of the employee’s salary for the first 16 days, and then the Norwegian National Insurance scheme takes over payments. This scheme also guarantees a pension upon retirement.
Unions to protect workers’ rights are common in Norway, with 22 trade unions representing various professions.
2. Denmark
Labor laws in Denmark aren’t as comprehensive as in Norway, but they’re still very protective of workers’ rights.
There’s no country-wide minimum wage, but wages and salaries are negotiated through collective agreements between employers and labor unions. The average workweek is 37 hours and can’t exceed 48.
As for overtime pay, it depends on collective bargaining agreements but is typically 50% in additional pay for the first three hours worked and 100% for any subsequent hours.
Workers receive five weeks of annual paid vacation leave. Sick leave in Denmark depends on the individual employment contract, but it’s common for Danish employees to receive full pay during illness for a certain period of time.
Both mothers and fathers are entitled to paid parental leave. Maternity leave consists of four weeks before birth, and both parents are entitled to 24 weeks of leave after birth if they live together when the child is born.
3. Sweden
Like Denmark, trade unions and collective agreements play a significant role in Sweden. In fact, about 70% of Swedish employees are union members, and nearly 90% of employees have their pay and conditions set via collective bargaining. Employers must also negotiate with any labor union to which their employees belong.
There is no statutory minimum wage in Sweden. Instead, employers and unions negotiate wages through collective bargaining agreements. Working hours must not exceed 40 per week, and employees must not accrue more than 48 hours of overtime during a four-week period.
Annual paid vacation time is a minimum of five weeks per year, and employers are required to cover paid sick leave for the first two weeks. After that, workers must apply for sickness benefits via the Swedish Social Insurance Agency.
Parents are entitled to 480 days of paid parental leave per child, with each parent entitled to take up to 240 days.
4. Canada
In Canada, the standard workweek is 40 hours, and all employees — including most salaried ones — are eligible for overtime. Overtime rules vary by jurisdiction, but pay is typically 1.5 times the worker’s standard rate.
The federal minimum wage is currently CAD 17.30 and will increase to CAD 17.75 on April 1, 2025; however, it’s essential to remember that minimum wage can vary by province.
Canada’s provinces and territories also set vacation time for their workers, so this can vary. The only exceptions are for federal employees and people who work in federally regulated industries, such as telecommunications and healthcare, which the federal government regulates.
Pregnant employees are entitled to both maternity and shared parental leave. For more information, check out our guide to maternity leave in Canada.
As for sick leave, these regulations are outlined under the Employment Insurance program and provide workers up to 26 weeks of financial assistance for medical reasons up to a maximum of CAD 695.
Canada is also highly labor union-friendly, with numerous groups advocating for employees across many industries.
5. Netherlands
Labor unions are active in the Netherlands, with a fifth of Dutch employees belonging to a union.
The hourly minimum wage in the Netherlands is EUR 14.06 for workers 21 years of age or older, and the Working Hours Act governs the number of hours people are allowed to work based on industry, employee age, and whether an employee is pregnant or has recently given birth.
Pregnant employees are entitled to six weeks of paid leave before giving birth and at least 10 weeks of paid maternity leave post-birth. The partner of a person who gives birth is allowed one week of paid leave.
As for sick leave, employers must pay at least 70% of an ill employee’s salary for a maximum period of two years, and they must also take proactive steps to support the employee’s transition back to work.
6. Germany
An average workday for Germans is eight hours; however, the Federal Employment Agency permits workdays to be extended for up to 10 hours — but only for a short period. As of January 1, 2025, the country’s minimum wage is EUR 12.82 per hour.
All employees in Germany — including seasonal workers — are entitled to paid leave of at least two days per month. Full-time workers receive a minimum of 20 days of annual leave, but it’s common for employers to offer 25-30 days per year to remain competitive.
Germany’s labor laws provide unlimited sick leave, during which the employer pays the worker’s full salary for the first six weeks. After that, the employee’s health insurance takes over and pays a large portion of that salary.
Maternity leave is quite generous, with employed mothers receiving 14 weeks of paid leave, which can begin up to six weeks before giving birth. Parents can also extend parental leave until the child is 3 years old; however, this leave is unpaid.
In addition to labor unions, Germany also has works councils and groups of employees who collaborate with workplace management. A works council is mandatory for companies with five or more full-time employees; however, a works council is formed only at the request of employees, so it is possible to operate in Germany without one.
7. France
Under France’s Aubry Law, the standard workweek is 35 hours. Employees can work additional hours, but they’re entitled to overtime pay, which is generally 25% of their hourly wage for the first eight hours of overtime and 50% of their wage for any hours worked beyond that.
Another unique aspect of French labor regulations is its “right to disconnect” law, which applies to all companies with more than 50 employees. This law — designed to promote work-life balance —requires businesses to define regular working hours and permits workers to be unreachable via phone, email, Slack, etc., once their work day ends.
The minimum wage for French workers is EUR 11.65 as of January 2024, but labor unions often negotiate higher wages for their members.
French law mandates that all full-time employees receive five weeks of paid vacation leave annually, but 16% of companies provide additional leave, with 5% offering unlimited holidays.
Employment law ensures paid sick leave for employees who have worked at least 150 hours during the previous three months. While on sick leave, the employee is paid 50% of their average basic daily wage over the last three months.
France’s maternity leave is even more generous than Germany’s, with 16 weeks of fully paid leave, while fathers are guaranteed 28 days.
8. Finland
Under Finnish employment law, a standard workweek is 40 hours; any hours worked beyond this require overtime pay. According to the Working Hours Act, employees who work beyond this must be compensated at 1.5 times their standard pay for the first two hours and double for each following hour.
There’s no minimum wage in Finland, but most employees are covered by collective agreements negotiated by unions, which specify minimum pay rates for individual sectors.
If there’s no collective agreement for a specific type of work, it’s common to negotiate pay rates based on recently published statistics of wages, salaries, and labor costs. You can see some examples of median wages here.
Full-time employees accrue between 24 to 30 paid days of vacation leave annually, and employees are entitled to up to 10 days of paid sick leave. Employees can take additional sick leave after that but must apply for compensation via Finnish social security.
As for parental leave, Finland’s policies are both generous and flexible. Mothers receive 105 working days of maternity leave, which starts 30 working days before birth and ends 75 days after.
New fathers can take up to 18 working days off for paternity leave. The maximum paternity leave length is 54 working days, and fathers can take the remaining paternity leave after the mother no longer receives a maternity or parental allowance.
What It Means For Employers Going Global
As these eight countries illustrate, some countries’ laws are very protective of workers’ rights. This doesn’t mean your company shouldn’t consider hiring employees in these countries — you simply need to ensure that you do so in full compliance with local employment laws.
Failure to do so could result in legal issues, damage to your company’s reputation, and serious financial fines. For example, a minimum wage violation in Germany can result in a fine of up to EUR 500,000.
For more international hiring information, check out our comprehensive guide to avoiding compliance pitfalls.
Ensure Compliance with International Employment Laws with RemoFirst
Hiring globally can be confusing and overwhelming with so many different components of labor laws. However, an employer of record like RemoFirst can simplify international hiring. We’re the experts when it comes to employment laws in more than 180 countries.
In addition to ensuring your business is compliant with the labor laws in every country where you have a presence, we also manage global payroll, handle HR tasks, and more.
Ready to hire a global workforce without all the headaches? Schedule a demo.
