Employment Law or also known as the Labor Law is a branch of law with administrative ruling, restrictions, and precedents for working people inside an organization. This law involves many different aspects concerning relationship between employees, employers, and trade unions. The employment laws in Canada that are related to unification of companies are differentiated from those laws relating to particular people. This distinction is not made in most countries in the world.
There are two broad classifications of Employment Law. The first classification is the Collective Employment Law that relates to the tripartite relationships between the union, employer, and employee. The second classification is the Individual Employment Law that concerns the rights at work of the employees through the organization’s contract. Between the 19th and 20th centuries, labor movements have been active in enacting laws protecting the labor rights. Since the industrial revolutions, labor rights have been an integral part of the economic and social development of many countries.
The Employment Law arose due to the demands of many laborers for the right to organize and better conditions. There were also simultaneous demands from employers to restrict the many organization powers of workers as well as keeping the labor costs low. The costs of employers can increase due to the organization of workers in winning higher wages or imposing costly requirements by laws such as equal opportunities conditions, health, and safety. The organizations of the workers such as the trade unions can also go above the industrial disputes and gain political authority, which many employers may disagree. Thus, the Employment Law came to materialize to protect the struggles between the different interests of the employers and the workers.
The basic component of Employment Law in most countries is the obligations and rights of every worker and employer between each other. This component is mediated through a contract. This has been the scenario since the breakdown of feudalism. In many modern economic relations, the scenario had also become the core reality. The conditions and terms implied on the contract have been authorized by the common and legislation decree of the Employment Law.
Another important component covered by the Employment Law is the minimum wage. Most of the countries in the world have this basic component in their employment laws. The minimum wage is normally different from the lowest gross determined by the forces of demand and supply in the free market. Thus, it only acts as the price floor. Every country in the world has its own set of laws and regulations concerning minimum wage. Apparently, many developing countries in the world may not have minimum wage but some industrialized countries set its minimum wage.
The working time of eight-hour everyday is also covered by the Employment Law. Before the Industrial Revolution happened, the working time varies between 11-14 hours every day. The introduction of machineries and growth of industrialism have helped the working time shortened.
Other important components of Employment Law include healthy and safety, anti-discrimination law, unfair dismissal, and child labor.