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The purpose of this article is to examine the problems associated with the digital competence of the parties in the employment relationship. Employers and employees have a different set of rights and obligations which are in correlation dependence not only within themselves, but also in view of the processes of digitalization. In this aspect, the authors, for the first time in the labor law doctrine, bring forward in the field of doctrinal research the questions related to the digital competences in employment relationships about subjective rights and obligations. Subjected to normative analysis are relatable norms of the national legislation as well as European Acts concerning the problem. Based on the research topical questions are posed for scientific debate and overviews and conclusions are formulated so that the legal framework is updated. The study makes use of conventional legal study methods – normative analysis, comparative law analysis, induction and deduction. The processes of digitalization of labor call for urgent reforms in legislation as well as in the good practices of hiring and performance of labor. There are increasingly distinguishable and widely adopted European policies on prioritizing digital skills as a decisive factor for employment, on the one hand, and as a prerequisite for upgrading employment relationships in terms of stimulus for career advancement, adequate payment and various employers’ policies based on effective incentives and quality digital skills.