Labour law (American English: labor) or employment law is the body of laws, administrative rulings, and precedents which addresses the legal rights of, and restrictions on, workers and their organisations. As such, it mediates many aspects of the relationship between trade unions, employers and employees. In some countries (such as Canada), employment laws related to unionised workplaces are differentiated from those relating to particular individuals. In most countries however, no such distinction is made. The labour movement, heavily influenced by socialism, has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries.

The function and origins of labour law

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Labour law arose due to the demands of workers for better conditions and the right to organise, and the simultaneous demands of employers to restrict the powers of workers' organisations and keep labour costs low. Employers costs can increase due to workers organising to win better wages, or by laws emposing costly requirements, such as health and safety or equal opportunities conditions. Workers' organisations, such as trade unions, can also transcend purely industrial disputes, and gain political power - certain interests in society may be opposed to this. The state of labour law at any one time is therefore both the product of, and a component of the conditions for, struggles between different interests in society.

For example, workers' and trade union legal rights in the United States are relatively restricted, compared to most European countries. However, the compartmentalization between different laws systems mean that illegal aliens, for example, may work in the same sectors as full citizens (although they most often work in difficult and tiring jobs which natives don't want). As a counter-example, if labor laws are more protective in France, due to social, historic and cultural differences, illegal aliens may not be legally contracted. Thus, they have a more difficult time finding jobs and often work in the underground economy. However, if they do manage to get residency or, better yet, be naturalized, than they will get better labor conditions than US immigrants.

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