This paper examines the legal efficacy of regulating labor relations involving a foreign element amid intensifying globalization and migration. The study aims to clarify the jurisdictional nuances of international labor law and evaluate the theoretical and practical frameworks governing these interactions. By applying comparative legal analysis and systematic statutory interpretation, the research provides a comprehensive overview of choice-of-law mechanisms and the practical application of the party autonomy principle in employment contracts. The findings reveal that while current Ukrainian legislation largely mirrors international standards, there is a distinct need for further alignment regarding specific points of contact, particularly the lex loci laboris principle. The study concludes with a set of legislative recommendations designed to strengthen employee protections and maintain a balanced equilibrium between the parties within the framework of private international law.