This study examines the relationships between employees’ perception of labor law compliance, organizational justice, and employee performance to understand how compliance perceptions influence fairness and performance outcomes. Drawing on social exchange theory and organizational justice theory, the study explores both direct and indirect effects, emphasizing the mediating role of organizational justice. Data were collected from employees using a structured survey questionnaire based on validated measurement scales. The research employed partial least squares structural equation modeling (PLS-SEM) for data analysis to test the hypothesized relationships. The findings reveal that labor law compliance significantly influences organizational justice and employee performance. Organizational justice also has a significant positive effect on employee performance, highlighting its role as a critical predictor of employee performance. Additionally, the results confirm that organizational justice mediates the relationship between labor law compliance and employee performance, demonstrating its importance as a mechanism through which compliance perceptions impact employee performance. These findings contribute to the theoretical understanding of compliance, fairness, and employee performance while offering practical implications for organizational leaders and policymakers.