Examining the Relationship between Labor Law Compliance and Employee Perceptions, Attitudes and Behaviors

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This study examined the effect of legal compliance in the context of labor laws, and the role of organizational justice in mediating its relationship among organizational citizenship behavior (OCB), organizational commitment, and turnover intention. Utilizing a quantitative approach, two hundred forty-two (242) employees participated through online and face to face survey. Structural equation modeling was employed to test the relationships among the variables. Results showed that employees’ self-reports of employer legal compliance is a significant predictor of organizational justice, and that organizational justice fully mediated the relationship between legal compliance and organizational outcomes such as OCB, organizational commitment, and turnover intention. The results of the study highlighted the value of legal compliance in shaping employee attitudes and behaviors. In providing employees their legally mandated rights, employers can expect, as the results suggest, an increase in conscientiousness and involvement as well as commitment among employees and a decrease in employee turnover.