Enterprise　digital　transformation　can　reshape　corporate　internal　governance　models,　but　it　may　also　influence　the　workforce　in　the　firms.　This　study　explores　the　impact　of　enterprise　digital　transformation　on　employee　treatment.　We　find　that,　enterprise　digital　transformation　significantly　promotes　better　employee　treatment.　Mechanism　analysis　reveals　that　the　improvement　of　internal　control　and　labor　income　share　are　potential　pathways.　Furthermore,　the　positive　correlation　between　digital　transformation　and　employee　treatment　is　more　pronounced　in　non-state-owned　enterprises,　technology-oriented　firms,　and　firms　with　higher　operational　risk.　Moreover,　the　results　suggest　that　enterprise　digital　transformation　can　further　enhance　corporate　value　by　improving　employee　treatment.　The　research　suggests　that　the　improvement　of　digital　transformation　can　be　an　effective　factor　for　the　firms　to　enhance　labor　relations.　©　2024　Elsevier　Inc.