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How Logistics Companies Are Navigating Labor Laws in Multi-Country Operations

In today’s global supply chain ecosystem, logistics companies are facing an unprecedented challenge: managing compliance across multiple jurisdictions while maintaining operational efficiency. As cross-border commerce surges, the ability to hire, onboard, and retain a distributed workforce without breaching labor laws has become not just a compliance matter—but a competitive advantage.

The Complexity of Cross-Border Employment

Logistics firms, by nature, operate in several countries simultaneously. Whether it’s warehouse workers in Mexico, drivers in Colombia, or administrative teams in Argentina, each country brings its own labor codes, payroll requirements, and benefit obligations.

For example:

  • In Mexico, all employees must be registered with the IMSS, and companies must issue CFDI payroll receipts in compliance with SAT (Learn more about CFDI compliance).
  • In Argentina, collective bargaining agreements (CBAs) influence wages, schedules, and termination rights.
  • In Peru, remote workers must receive the same rights and benefits as on-site employees, including health coverage and proper working hour records.

Labor Compliance: More Than Just Paperwork

Failure to meet local labor standards can result in significant fines, operational disruption, and even bans from conducting business. A 2023 report from Deloitte found that over 40% of logistics companies faced audits due to employee misclassification or non-compliance with benefits laws across borders.

Ensuring lawful hiring practices, local employment contracts, and benefits provisioning requires deep legal and HR expertise in each jurisdiction—a tall order for in-house teams.

The EOR Advantage for Logistics

To stay compliant without opening legal entities in every country, many logistics providers are turning to Employer of Record (EOR) solutions. An EOR acts as the legal employer on behalf of the company, managing payroll, contracts, taxes, and compliance locally.

Benefits include:

  • Rapid workforce deployment across new markets.
  • Reduced risk of labor law violations.
  • Streamlined HR processes for cross-border teams.

Explore our detailed guide on how an EOR supports international expansion.

Case Study: Expanding Warehousing in Colombia

A European logistics provider recently expanded into Bogotá to meet regional e-commerce demands. Instead of navigating complex labor registration and contract drafting alone, they partnered with an EOR.

Outcomes:

  • Onboarded 15 employees within 10 business days.
  • Achieved 100% compliance with Colombian labor laws, including benefits and termination regulations.
  • Avoided legal entity setup and its associated tax obligations.

Navigating Labor and Logistics at Scale

The rise of multi-modal operations (sea, air, and land) also means managing shift workers, independent contractors, and unionized labor forces—each governed by distinct laws.

Consider these internal resources to understand key compliance issues:

Conclusion: Compliance is a Strategic Asset

For logistics companies scaling globally, compliance is no longer a back-office concern—it’s central to successful operations. From ensuring benefits are delivered equitably to adhering to local termination laws, the risks of non-compliance are too high to ignore.

Leveraging EOR solutions enables logistics companies to expand with confidence, knowing that labor law complexities won’t derail growth. In an industry defined by speed and precision, compliance is the unsung hero driving sustainability.

Want to explore how Global Touch can support your international logistics workforce? Contact us here.