That would be an issue, but thankfully isn't necessarily the case.

you're usually bound by the locality where the contract is signed, so you dont suddenly gain rights just by moving abroad until the employer actually creates a new contract. for that to happen, the employer would have to create a legal entity in that legal region.

do note however, that some nations dont allow you to work while on their soil, unless you specifically get a visa permitting it.

This is not true in the US as state laws apply for where the employee conducts the work, not the location of the employer.

The employer will need to withhold taxes for the state of the employee as well.

This is frequently hard to detect with everyone teleworking, but rest assured that HR is getting a call if someone works in a state with maternity leave laws requiring it.

While not generally applicable for digital jobs that telework, I think the most obvious would be minimum wage. If I live in Seattle and telework to a job in Alabama that pays only $11, that’s a liability for the employer.

Of course, I think that if an employee was teleworking from a location without approval that’s likely grounds for dismissal.

A nation who has laws as you suggest opens their population up to remote slave labor. Ie. Some foreign company encourages citizens to work for less than minimum wage, paying no employment taxes, in conditions that would otherwise be illegal. That in turn also hurts local employers competing for the same labor pool.

Therefore I believe all nations will decide that work done on their soil must follow their employment laws, even if done for a foreign company.

There is precident for that interpretation pre-pandemic in many western countries.

This may or may not be true in all locales, but one issue described to me is that having a legal entity in one jurisdiction with employees in another jurisdiction can expose the company to be also tax liable in the workers jurisdiction