Working poor

From Wikipedia, the free encyclopedia

https://en.wikipedia.org/wiki/Working_poor 

 

Poor women working on a railway track

The working poor are working people whose incomes fall below a given poverty line due to low-income jobs and low familial household income. These are people who spend at least 27 weeks in a year working or looking for employment, but remain under the poverty threshold.

In the US, the official measurement of the working poor is controversial. Many social scientists argue that the official measurements used do not provide a comprehensive overview of the number of working poor. One recent study proposed over 100 ways to measure this and came up with a figure that ranged between 2% and 19% of the total US population.

There is also controversy surrounding ways that the working poor can be helped. Arguments range from increasing welfare to the poor on one end of the spectrum to encouraging the poor to achieve greater self-sufficiency on the other end, with most arguing varying degrees of both.

Measurement

Absolute

According to the US Department of Labor, the working poor "are persons who spent at least 27 weeks [in the past year] in the labor force (that is, working or looking for work), but whose incomes fell below the official poverty level." In other words, if someone spent more than half of the past year in the labor force without earning more than the official poverty threshold, the US Department of Labor would classify them as "working poor". (Note: The official poverty threshold, which is set by the US Census Bureau, varies depending on the size of a family and the age of the family members.) As of 2018, the poverty threshold for a family of four people is $25,701 and for a single person $12,784. The official poverty threshold is calculated by using the Consumer Price Index for goods, multiplying the cost of a minimum food diet in 1963 by three, a family's gross income (before tax), and the number of family members. In 2017, there were 6.9 million individuals defined as working poor. Because there has been, and still is, debate on how accurate using this metric is, the US Census Bureau began publishing a Supplemental Poverty Measure in 2011. The main difference using this metric is that a person's poverty status is determined after subtracting taxes, food, clothing, shelter, utilities, childcare and work-related expenses, and including government benefits and people living in the home that do not fit the "family" definition (such as an unmarried couple, or dependent foster children). Using the SPM, the poverty rate overall increases, particularly the rate of the working poor. In 2018, the official rate was 5.1% vs the SPM's measure of 7.2%.

Relative

In Europe and other non-US, high-income countries, poverty and working poverty are defined in relative terms. A relative measure of poverty is based on a country's income distribution rather than an absolute amount of money. Eurostat, the statistical office of the European Union, classifies a household as poor if its income is less than 60 percent of the country's median household income. According to Eurostat, a relative measure of poverty is appropriate because "minimal acceptable standards usually differ between societies according to their general level of prosperity: someone regarded as poor in a rich developed country might be regarded as rich in a poor developing country."

According to the latest data the UK's working poor rate is 10%, with the median income being £507 per week in 2018.

A profile of the working poor in the US

According to a 2017 report from the US Bureau of Labor Statistics 4.5% of all people working or looking for work for at least 27 weeks in the previous year had incomes below the poverty level. 10.9% of those were employed part-time, and 2.9% were employed full-time. The occupations that have the highest poverty rate are agricultural jobs, such as farming, service sector jobs, such as fast food or retail, and the construction industry, at 9.7%, 9.0% and 7.1% respectively. The largest ethnicity groups of the working poor are African-American and Hispanics or Latinos, both at 7.9%, with whites at 3.9% and Asian at 2.9%. Women are far more likely than men to be working and in poverty, 10% vs 5.6%. While the majority of the working poor have a high school diploma or less, 5% have some college education, 3.2% have an associate degree, and 1.5% have a bachelor's degree or higher. Families with children are four times as likely as a single person to live in poverty, with families headed by single women making up 16% of all working poor families.

Prevalence and trends

In 2018, according to the US Census Bureau's official definition of poverty, 38.1 million US citizens were below the poverty line (11.8% of the population). However this number includes children under 18 years of age, elders over 65, and people with disabilities who cannot work. The poverty rate of people between the ages of 18 to 64 was 10.7%, or 21.1 million people. Of these, nearly half, 5.1%, were working at least part-time.

Using the US Census Bureau's definition of poverty, the working poverty rate seems to have remained relatively stable since 1978. There is quite a bit of controversy around this measurement, namely how the dollar amounts that make up the poverty threshold are calculated. In 1961, the Department of Agriculture came out with an "economy food plan" to be used as a temporarily during an emergency or when a family is in need. This plan did not account for any food consumption outside of the home, and while it was considered nutritious, it was limited in variety and monotonous, thus the temporary designation. The US government took this number and—because the average family at the time spent one-third of their income on food—multiplied it by three. This has remained the standard way to set the poverty thresholds. The food plan has not changed, it has only been adjusted for inflation. One argument is that this is no longer an accurate way to measure poverty because the average lifestyle has changed dramatically since the 1960s

US compared to Europe

Other high-income countries have also experienced declining manufacturing sectors over the past four decades, but most of them have not experienced as much labor market polarization as the United States. Labor market polarization has been the most severe in liberal market economies like the US, Britain, and Australia. Countries like Denmark and France have been subject to the same economic pressures, but due to their more "inclusive" (or "egalitarian") labor market institutions, such as centralized and solidaristic collective bargaining and strong minimum wage laws, they have experienced less polarization.

Cross-national studies have found that European countries' working poverty rates are much lower than the US's. Most of this difference can be explained by the fact that European countries' welfare states are more generous than the US's. The relationship between generous welfare states and low rates of working poverty is elaborated upon in the "Risk factors" and "Anti-poverty policies" sections.

The following graph uses data from Brady, Fullerton, and Cross (2010) to show the working poverty rates for a small sample of countries. Brady, Fullerton, and Cross (2010) accessed this data through the Luxembourg Income Study. This graph measures household, rather than person-level, poverty rates. A household is coded as "poor" if its income is less than 50% of its country's median income. This is a relative, rather than absolute, measure of poverty. A household is classified as "working" if at least one member of the household was employed at the time of the survey. The most important insight contained in this graph is that the US has strikingly higher working poverty rates than European countries.

Risk factors

Race

Minorities in the US are disproportionately affected by poverty. Blacks and Hispanics are twice as likely to be part of the working poor than Whites. In 2017, the rate for Blacks and Hispanics was 7.9%, and 3.9% for Whites, 2.9% for Asians.

Education

Higher levels of education generally leads to lower levels of poverty. However, higher education is not a guarantee of escaping poverty. 5.0% of the working poor have some college experience, 3.2% have an associate degree, and 1.5% have a bachelor's degree or higher. Using the Supplemental Poverty Report and looking at everyone in poverty, not just those working, these percentages actually rise to 14.9% with a high school diploma, 9.7% with some college, and 6.2% with a bachelor's degree of higher. Blacks and Hispanics have higher rates of poverty than Whites and Asians at every education level. Student loan debt in the USA can also contribute to poverty due to capitalized interest if the borrower does not earn enough wages keep up with the loan payments.

Families

Married and cohabiting partners are less likely to experience poverty than individuals and single parents. The percentage of married and cohabiting partners living in poverty in 2018 was 7.7% and 13.9% versus 21.9% for individuals. Single mothers are more likely than single fathers to experience poverty, 25% and 15.1% respectively.

Age

Older workers are less likely to be working and poor than their younger counterparts. The age group with the highest rate of poverty at 8.5% is 20 to 24 year olds, and 16 to 19 year olds at 8.4%. As workers age, the rate of poverty decreases to 5.7% for 25 to 34 year olds and 5% for 35 to 44 year olds. Workers ages 45 to 50, 55 to 64 and 65+ had much lower working poor rates, 3.1%, 2.6% and 1.5%, respectively.

Gender

Women of all races are more likely than men to be classified as working poor, especially if they are single mothers. The overall rate for women in 2017 was 5.3%, compared to 3.8% for men. The rate for Black women and Hispanic women was significantly higher than their male counterparts, at 10% and 9.1%, compared to Black men at 5.6% and Hispanic men at 7.0%. The rate for White women was closer to White males, at 4.5% and 3.5%, respectively. Only Asian women had a lower rate of working poverty than Asian males, at 2.5% and 3.2%, respectively.

Transgender persons are more likely than cisgender men or women to be classified as working poor. In the United States, transgender people are three times more likely than the average population have a household income between $1 and $9,999, and nearly twice as likely to have a household income between $10,000 and $24,999.

Obstacles to uplift

The working poor face many of the same daily life struggles as the nonworking poor, but they also face some unique obstacles. Some studies, many of them qualitative, provide detailed insights into the obstacles that hinder workers' ability to find jobs, keep jobs, and make ends meet. Some of the most common struggles faced by the working poor are finding affordable housing, arranging transportation to and from work, buying basic necessities, arranging childcare, having unpredictable work schedules, juggling two or more jobs, and coping with low-status work.

Housing
Working poor people who do not have friends or relatives with whom they can live often find themselves unable to rent an apartment of their own. Although the working poor are employed at least some of the time, they often find it difficult to save enough money for a deposit on a rental property. As a result, many working poor people end up in living situations that are actually more costly than a month-to-month rental. For instance, many working poor people, especially those who are in some kind of transitional phase, rent rooms in week-to-week motels. These motel rooms tend to cost much more than a traditional rental, but they are accessible to the working poor because they do not require a large deposit. If someone is unable or unwilling to pay for a room in a motel, they might live in their car, in a homeless shelter, or on the street. This is not a marginal phenomenon; in fact, according to the 2008 US Conference of Mayors, one in five homeless people are currently employed.

Some working poor people are able to access housing subsidies (such as a Section 8 Housing Choice Voucher) to help cover their housing expenses. However, these housing subsidies are not available to everyone who meets the Section 8 income specifications. In fact, less than 25% of people who qualify for a housing subsidy receive one.

Education
The issue with education starts many times with the working poor from childhood and follows them into their struggle for a substantial income. Children growing up in families of the working poor are not provided the same educational opportunities as their middle-class counterpart. In many cases the low income community is filled with schools that are lacking necessities and support needed to form a solid education. This follows students as they continue in education. In many cases this hinders the possibility for America's youth to continue on to higher education. The grades and credits just are not attained in many cases, and the lack of guidance in the schools leaves the children of the working poor with no degree. Also, the lack of funds for continuing education causes these children to fall behind. In many cases, their parents did not continue on into higher education and because of this have a difficult time finding jobs with salaries that can support a family. Today a college degree is a requirement for many jobs, and it is the low skill jobs that usually only require a high school degree or GED. The inequality in available education continues the vicious cycle of families entering into the working poor.

Transportation
Given the fact that many working poor people do not own a car or cannot afford to drive their car, where they live can significantly limit where they are able to work, and vice versa. Given the fact that public transportation in many US cities is sparse, expensive, or non-existent, this is a particularly salient obstacle. Some working poor people are able to use their social networks—if they have them—to meet their transportation needs. In a study on low-income single mothers, Edin and Lein found that single mothers who had someone to drive them to and from work were much more likely to be able to support themselves without relying on government aid.

Basic necessities
Like the unemployed poor, the working poor struggle to pay for basic necessities like food, clothing, housing, and transportation. In some cases, however, the working poor's basic expenses can be higher than the unemployed poor's. For instance, the working poor's clothing expenses may be higher than the unemployed poor's because they must purchase specific clothes or uniforms for their jobs. Also, because the working poor are spending much of their time at work, they may not have the time to prepare their own food. In this case, they may frequently resort to eating fast food, which is less healthful and more expensive than home-prepared food.

Childcare
Working poor parents with young children, especially single parents, face significantly more childcare-related obstacles than other people. Often, childcare costs can exceed a low-wage earners' income, making work, especially in a job with no potential for advancement, an economically illogical activity. However, some single parents are able to rely on their social networks to provide free or below-market-cost childcare. There are also some free childcare options provided by the government, such as the Head Start Program. However, these free options are only available during certain hours, which may limit parents' ability to take jobs that require late-night shifts. The U.S. "average" seems to suggest that for one toddler, in full-time day care, on weekdays, the cost is approximately $600.00 per month. But, that figure can rise to well over $1000.00 per month in major metro areas, and fall to less than $350 in rural areas. The average cost of center-based daycare in the United States is $11,666 per year ($972 a month), but prices range from $3,582 to $18,773 a year ($300 to $1,564 monthly), according to the National Association of Child Care Resource & Referral Agencies.

Work schedules
Many low-wage jobs force workers to accept irregular schedules. In fact, some employers will not hire someone unless they have "open availability," which means being available to work any time, any day. This makes it difficult for workers to arrange for childcare and to take on a second job. In addition, working poor people's working hours can fluctuate wildly from one week to the next, making it difficult for them to budget effectively and save up money.

Multiple jobs
Many low-wage workers have to work multiple jobs in order to make ends meet. In 1996, 6.2 percent of the workforce held two or more full- or part-time jobs. Most of these people held two part-time jobs or one part-time job and one full-time job, but 4% of men and 2% of women held two full-time jobs at the same time. This can be physically exhausting and can often lead to short and long-term health problems.

Low-Status Work
Many low-wage service sector jobs require a great deal of customer service work. Although not all customer service jobs are low-wage or low-status, many of them are. Some argue that the low status nature of some jobs can have negative psychological effects on workers, but others argue that low status workers come up with coping mechanisms that allow them to maintain a strong sense of self-worth. One of these coping mechanisms is called boundary work. Boundary work happens when one group of people valorize their own social position by comparing themselves to another group, who they perceive to be inferior in some way. For example, Newman (1999) found that fast food workers in New York City cope with the low-status nature of their job by comparing themselves to the unemployed, who they perceive to be even lower-status than themselves. Thus, although the low-status nature of working poor people's jobs may have some negative psychological effects, some, but probably not all, of these negative effects can be counteracted through coping mechanisms such as boundary work.

Anti-poverty policies

Scholars, policymakers, and others have come up with a variety of proposals for how to reduce or eliminate working poverty. Most of these proposals are directed toward the United States, but they might also be relevant to other countries. The remainder of the section outlines the pros and cons of some of the most commonly proposed solutions.

Welfare state generosity

Cross-national studies like Lohmann (2009) and Brady, Fullerton, and Cross (2010) clearly show that countries with generous welfare states have lower levels of working poverty than countries with less-generous welfare states, even when factors like demography, economic performance, and labor market institutions are taken into account. Having a generous welfare state does two key things to reduce working poverty: it raises the minimum level of wages that people are willing to accept, and it pulls a large portion of low-wage workers out of poverty by providing them with an array of cash and non-cash government benefits. Many think that increasing the United States' welfare state generosity would lower the working poverty rate. A common critique of this proposal is that a generous welfare state would not work because it would stagnate the economy, raise unemployment, and degrade people's work ethic. However, as of 2011, most European countries have a lower unemployment rate than the US. Furthermore, although Western European economies' growth rates can be lower than the US's from time to time, their growth rates tend to be more stable, whereas the US's tends to fluctuate relatively severely. Individual states offer financial assistance for child care, but the aid varies widely. Most assistance is administered through the Child Care and Development Block Grants. Many subsidies have strict income guidelines and are generally for families with children under 13 (the age limit is often extended if the child has a disability). Many subsidies permit home-based care, but some only accept a day care center, so check the requirements. However, in an academic research, half of the respondents linked aspirations to their tax refunds for financial support, even though they did not ask for specific governmental aid.

Some states distribute funds through social or health departments or agencies (like this one in Washington State). For example, the Children's Cabinet in Nevada can refer families to providers, help them apply for subsidies and can even help families who want to pay a relative for care. North Carolina's Smart Start is a public/private partnership that offers funding for child care. Check the National Women's Law Center for each state's child care assistance policy.

Wages and benefits

In the conclusion of her book, Nickel and Dimed (2001), Barbara Ehrenreich argues that Americans need to pressure employers to improve worker compensation. Generally speaking, this implies a need to strengthen the labor movement. Cross-national statistical studies on working poverty suggest that generous welfare states have a larger impact on working poverty than strong labor movements. The labor movements in various countries have accomplished this through political parties of their own (labor parties) or strategic alliances with non-labor parties, for instance, when striving to put a meaningful minimum wage in place. The federal government offers a Flexible Spending Account (FSA) that's administered through workplaces.

If a job offers an FSA (also known as a Dependent Care Account), one can put aside up to $5,000 in pre-tax dollars to pay for child care expenses. If both you and your spouse have an FSA, the family limit is $5,000—but you could get as much as $2,000 in tax savings if your combined contributions reach the maximum.

Education and training

Some argue that more vocational training and active labour market policies, especially in growth industries like healthcare and renewable energy, is the solution to working poverty. To be sure, wider availability of vocational training could pull some people out of working poverty, but the fact remains that the low-wage service sector is a rapidly growing part of the US economy. Even if more nursing and clean energy jobs were added to the economy, there would still be a huge portion of the workforce in low-wage service sector jobs like retail, food service, and cleaning. Therefore, it seems clear that any significant reduction in the working poverty rate will have to come from offering higher wages and more benefits to the current, and future, population of service sector workers.

Child support assurance

Given the fact that such a large proportion of working poor households are headed by a single mother, one clear way to reduce working poverty would be to make sure that children's fathers share the cost of child rearing. In cases where the father cannot provide child support, scholars like Irwin Garfinkel advocate for the implementation of a child support guarantee, whereby the government pays childcare costs if the father cannot. Child support is not always a guarantee if the father or mother does not work. For example, if the parent without custody is not working then the parent with custody does not receive any child support unless the non working parent is employed at their job longer than 90 days, excluding if the non begins to work for its a city or government. Also, the government does not pay for childcare cost if you make more than the cut off range (your gross, per county or state.)

Marriage

Households with two wage-earners have a significantly lower rate of working poverty than households with only one wage-earner. Also, households with two adults, but only one wage-earner, have lower working poverty rates than households with only one adult. Therefore, it seems clear that having two adults in a household, especially if there are children present, is more likely to keep a household out of poverty than having just one adult in a household. Many scholars and policymakers have used this fact to argue that encouraging people to get married and stay married is an effective way to reduce working poverty (and poverty in general). However, this is easier said than done. Research has shown that low-income people marry less often than higher-income people because they have a more difficult time finding a partner who is employed, which is often seen as a prerequisite for marriage. Therefore, unless the employment opportunity structure is improved, simply increasing the number of marriages among low-income people would be unlikely to lower working poverty rates.

Ultimately, effective solutions to working poverty are multifaceted. Each of the aforementioned proposals could help reduce working poverty in the United States, but they might have a greater impact if at least a few of them were pursued simultaneously.

Labour law

From Wikipedia, the free encyclopedia

https://en.wikipedia.org/wiki/Labour_law 

Labour laws (also known as labor laws or employment laws) are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

Individual labour law concerns employees' rights at work also through the contract for work. Employment standards are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors are allowed to work. Government agencies (such as the former US Employment Standards Administration) enforce labour law (legislature, regulatory, or judicial).

History

Main articles: History of labour law, Collegium (ancient Rome), Guild, and Trade union

Following the unification of the city-states in Assyria and Sumer by Sargon of Akkad into a single empire ruled from his home city circa 2334 BC, common Mesopotamian standards for length, area, volume, weight, and time used by artisan guilds in each city was promulgated by Naram-Sin of Akkad (c. 2254–2218 BC), Sargon's grandson, including for shekels. Code of Hammurabi Law 234 (c. 1755–1750 BC) stipulated a 2-shekel prevailing wage for each 60-gur (300-bushel) vessel constructed in an employment contract between a shipbuilder and a ship-owner. Law 275 stipulated a ferry rate of 3-gerah per day on a charterparty between a ship charterer and a shipmaster. Law 276 stipulated a 21⁄2-gerah per day freight rate on a contract of affreightment between a charterer and shipmaster, while Law 277 stipulated a 1⁄6-shekel per day freight rate for a 60-gur vessel. In 1816, an archeological excavation in Minya, Egypt (under an Eyalet of the Ottoman Empire) produced a Nerva–Antonine dynasty-era tablet from the ruins of the Temple of Antinous in Antinoöpolis, Aegyptus that prescribed the rules and membership dues of a burial society collegium established in Lanuvium, Italia in approximately 133 AD during the reign of Hadrian (117–138) of the Roman Empire.

A collegium was any association in ancient Rome that acted as a legal entity. Following the passage of the Lex Julia during the reign of Julius Caesar as Consul and Dictator of the Roman Republic (49–44 BC), and their reaffirmation during the reign of Caesar Augustus as Princeps senatus and Imperator of the Roman Army (27 BC–14 AD), collegia required the approval of the Roman Senate or the Emperor in order to be authorized as legal bodies. Ruins at Lambaesis date the formation of burial societies among Roman Army soldiers and Roman Navy mariners to the reign of Septimius Severus (193–211) in 198 AD.^[9] In September 2011, archeological investigations done at the site of the artificial harbour Portus in Rome revealed inscriptions in a shipyard constructed during the reign of Trajan (98–117) indicating the existence of a shipbuilders guild. Rome's La Ostia port was home to a guildhall for a corpus naviculariorum, a collegium of merchant mariners. Collegium also included fraternities of Roman priests overseeing ritual sacrifices, practicing augury, keeping scriptures, arranging festivals, and maintaining specific religious cults.

Labour law arose in parallel with the Industrial Revolution as the relationship between worker and employer changed from small-scale production studios to large-scale factories. Workers sought better conditions and the right to join a labour union, while employers sought a more predictable, flexible and less costly workforce. The state of labour law at any one time is therefore both the product of and a component of struggles between various social forces.

As England was the first country to industrialize, it was also the first to face the often appalling consequences of the industrial revolution in a less regulated economic framework. Over the course of the late 18th and early to the mid-19th century the foundation for modern labour law was slowly laid, as some of the more egregious aspects of working conditions were steadily ameliorated through legislation. This was largely achieved through the concerted pressure from social reformers, notably Anthony Ashley-Cooper, 7th Earl of Shaftesbury, and others.

Child labour

A serious outbreak of fever in 1784 in cotton mills near Manchester drew widespread public opinion against the use of children in dangerous conditions. A local inquiry presided over by Dr Thomas Percival, was instituted by the justices of the peace for Lancashire, and the resulting report recommended the limitation of children's working hours. In 1802, the first major piece of labour legislation was passed − the Health and Morals of Apprentices Act. This was the first, albeit modest, step towards the protection of labour. The act limited working hours to twelve a day and abolished night work. It required the provision of a basic level of education for all apprentices, as well as adequate sleeping accommodation and clothing.

The rapid industrialisation of manufacturing at the turn of the 19th century led to a rapid increase in child employment, and public opinion was steadily made aware of the terrible conditions these children were forced to endure. The Cotton Mills and Factories Act 1819 was the outcome of the efforts of the industrialist Robert Owen and prohibited child labour under nine years of age and limited the working hours to twelve. A great milestone in labour law was reached with the Factories Act 1833, which limited the employment of children under eighteen years of age, prohibited all night work, and, crucially, provided for inspectors to enforce the law. Pivotal in the campaigning for and the securing of this legislation were Michael Sadler and the Earl of Shaftesbury. This act was an important step forward, in that it mandated skilled inspection of workplaces and rigorous enforcement of the law by an independent governmental body.

A lengthy campaign to limit the working day to ten hours was led by Shaftesbury and included support from the Anglican Church. Many committees were formed in support of the cause and some previously established groups lent their support as well. The campaign finally led to the passage of the Factory Act 1847, which restricted the working hours of women and children in British factories to effectively 10 hours per day.

Working conditions

These early efforts were principally aimed at limiting child labour. From the mid-19th century, attention was first paid to the plight of working conditions for the workforce in general. In 1850, systematic reporting of fatal accidents was made compulsory, and basic safeguards for health, life and limb in the mines were put in place from 1855. Further regulations, relating to ventilation, fencing of disused shafts, signalling standards, and proper gauges and valves for steam-boilers and related machinery were also set down.

A series of further Acts, in 1860 and 1872 extended the legal provisions and strengthened safety provisions. The steady development of the coal industry, an increasing association among miners, and increased scientific knowledge paved the way for the Coal Mines Act of 1872, which extended the legislation to similar industries. The same Act included the first comprehensive code of regulation to govern legal safeguards for health, life and limb. The presence of more certified and competent management and increased levels of inspection were also provided for.

By the end of the century, a comprehensive set of regulations was in place in England that affected all industries. A similar system (with certain national differences) was implemented in other industrializing countries in the latter part of the 19th century and the early 20th century..

Individual labour law

Employment terms

Main articles: Employment contract, At-will employment, and Intellectual capital

The basic feature of labour law in almost every country is that the rights and obligations of the worker and the employer are mediated through a contract of employment between the two. This has been the case since the collapse of feudalism. Many contract terms and conditions are covered by legislation or common law. In the US for example, the majority of state laws allow for employment to be "at-will", meaning the employer can terminate an employee from a position for any reason so long as the reason is not explicitly prohibited, and, conversely, an employee may quit at any time, for any reason (or for no reason), and is not required to give notice.

A major issue for any business is to understand the relationship between the worker and the master. There are two types of workers, independent contractors and employees. They are differentiated based on the level of control the master has on them. Workers provided tools and resources, closely supervised, paid regularly, etc., are considered employees of the company. Employees must act in the best interest of the employer.

One example of employment terms in many countries is the duty to provide written particulars of employment with the essentialia negotii (Latin for "essential terms") to an employee. This aims to allow the employee to know concretely what to expect and what is expected. It covers items including compensation, holiday and illness rights, notice in the event of dismissal and job description.

The contract is subject to various legal provisions. An employer may not legally offer a contract that pays the worker less than a minimum wage. An employee may not agree to a contract that allows an employer to dismiss them for illegal reasons.

Intellectual property is the vital asset of the business, employees add value to the company by creating Intellectual Property. As per Trade Related Aspects of Intellectual Property Rights (TRIPS), Intellectual Property is personal property. Intellectual property is used as competitive advantage by big companies to protect themselves from rivalry. Given the conditions, if the worker is in the agent-principal relationship, he is the employee of the company, and if the employee's invention is in the scope of employment i.e. if the employee creates a new product or process to increase the productivity and create organizations' wealth by utilizing the resources of the company, then the Intellectual property solely belongs to the company. New business products or processes are protected under Patents.

There are differing opinions on what constitutes a patentable invention. One area of disagreement is with respect to software inventions, but there have been court cases that have established some precedents. For example, in the case Diamond v. Diehr the United States Supreme Court decided that Diehr is patent- eligible because they improved the existing technological process, not because they were implemented on a computer.

Minimum wage

Main article: Minimum wage

Many jurisdictions define the minimum amount that a worker can be paid per hour. Algeria, Australia, Belgium, Brazil, Canada, China, France, Greece, Hungary, India, Ireland, Japan, South Korea, Luxembourg, the Netherlands, New Zealand, Paraguay, Portugal, Poland, Romania, Spain, Taiwan, the United Kingdom, the United States, Vietnam, Germany (in 2015) and others have laws of this kind. The minimum wage is set usually higher than the lowest wage as determined by the forces of supply and demand in a free market and therefore acts as a price floor. Each country sets its own minimum wage laws and regulations, and while a majority of industrialized countries has a minimum wage, many developing countries do not.

Minimum wages are regulated and stipulated in some countries that lack explicit laws. The United States of America is regulated by the Fair Labor Standars Act and has explicit laws, whereas other countries such as Sweden might lack explicit laws. In Sweden minimum wages are negotiated between the labour market parties (unions and employer organizations) through collective agreements that also cover non-union workers at workplaces with collective agreements. At workplaces without collective agreements there exist no minimum wages. Non-organized employers can sign substitute agreements directly with trade unions but far from all do. The Swedish case illustrates that in countries without statutory regulation part of the labour market may not have regulated minimum wages, as self-regulation only applies to workplaces and employees covered by collective agreements (in Sweden about 90 per cent of employees).

National minimum wage laws were first introduced in the United States in 1938, Brazil in 1940 India in 1948, France in 1950 and in the United Kingdom in 1998. In the European Union, 18 out of 28 member states have national minimum wages as of 2011.

Living wage

Main article: Living wage

The living wage is higher than the minimum wage and is designed so that a full-time worker should be able to support themselves and a small family at that wage.

Hours

See also: Eight-hour day

The maximum number of hours worked per day or other time intervals are set by law in many countries. Such laws also control whether workers who work longer hours must be paid additional compensation.

Before the Industrial Revolution, the workday varied between 11 and 14 hours. With the growth of industrialism and the introduction of machinery, longer hours became far more common, reaching as high as 16 hours per day.

The eight-hour movement led to the first law on the length of a working day, passed in 1833 in England. It limited miners to 12 hours and children to 8 hours. The 10-hour day was established in 1848, and shorter hours with the same pay were gradually accepted thereafter. The 1802 Factory Act was the first labour law in the UK.

Germany was the next European country to pass labour laws; Chancellor Otto von Bismarck's main goal was to undermine the Social Democratic Party of Germany. In 1878, Bismarck instituted a variety of anti-socialist measures, but despite this, socialists continued gaining seats in the Reichstag. To appease the working class, he enacted a variety of paternalistic social reforms, which became the first type of social security. In 1883 the Health Insurance Act was passed, which entitled workers to health insurance; the worker paid two-thirds and the employer one-third of the premiums. Accident insurance was provided in 1884, while old-age pensions and disability insurance followed in 1889. Other laws restricted the employment of women and children. These efforts, however, were not entirely successful; the working class largely remained unreconciled with Bismarck's conservative government.

In France, the first labour law was voted in 1841. It limited under-age miners' hours. In the Third Republic labour law was first effectively enforced, in particular after Waldeck-Rousseau 1884 law legalising trade unions. With the Matignon Accords, the Popular Front (1936–38) enacted the laws mandating 12 days each year of paid vacations for workers and the law limiting the standard workweek to 40 hours.

Health and safety

Main article: Occupational safety and health

Other labour laws involve safety concerning workers. The earliest English factory law was passed in 1802 and dealt with the safety and health of child labourers in textile mills.

Discrimination

Main article: Anti-discrimination law

Such laws prohibit discrimination against employees, in particular racial discrimination or gender discrimination.

Dismissal

Main articles: Unfair dismissal, Wrongful dismissal, and At-will employment

Convention no. 158 of the International Labour Organization states that an employee "can't be fired without any legitimate motive" and "before offering him the possibility to defend himself". Thus, on April 28, 2006, after the unofficial repeal of the French First Employment Contract, the Longjumeau (Essonne) conseil des prud'hommes (labour law court) judged the New Employment Contract contrary to international law and therefore "illegitimate" and "without any juridical value". The court considered that the two-years period of "fire at will" (without any legal motive) was "unreasonable", and contrary to convention.

Child labour

Main article: Child labour

 

Two girls wearing banners in Yiddish and English with the slogan "Abolish child slavery!!" at the 1909 International Workers' Day parade in New York City

Child labour was not seen as a problem throughout most of history, only disputed with the beginning of universal schooling and the concepts of labourers' and children's rights. Use of child labour was commonplace, often in factories. In England and Scotland in 1788, about two-thirds of persons working in water-powered textile factories were children. Child labour can be factory work, mining or quarrying, agriculture, helping in the parents' business, operating a small business (such as selling food), or doing odd jobs. Children work as guides for tourists, sometimes combined with bringing in business for shops and restaurants (where they may also work). Other children do jobs such as assembling boxes or polishing shoes. However, rather than in factories and sweatshops, most child labour in the twenty-first century occurs in the informal sector, "selling on the street, at work in agriculture or hidden away in houses — far from the reach of official inspectors and from media scrutiny."

Collective labour law

Main article: Freedom of association

Collective labour law concerns the relationship between employer, employee and trade unions. Trade unions (also "labour unions" in the US) are organizations which generally aim to promote the interests of their members. This law regulates the wages, benefits, and duties of the employees, and the dispute management between the company and the trade union. Such matters are often described in a collective labour agreement (CLA).

Trade unions

Main article: Trade union

Trade unions are organized groups of workers who engage in collective bargaining with employers. Some countries require unions and/or employers to follow particular procedures in pursuit of their goals. For example, some countries require that unions poll the membership to approve a strike or to approve using members' dues for political projects. Laws may govern the circumstances and procedures under which unions are formed. They may guarantee the right to join a union (banning employer discrimination), or remain silent in this respect. Some legal codes allow unions to obligate their members, such as the requirement to comply with a majority decision in a strike vote. Some restrict this, such as "right to work" legislation in parts of the United States.

In the different organization in the different countries trade union discuses with the employee on behalf of employer. At that time trade union discussed or talk with the manpower of the organization. At that time trade union perform his roles like a bridge between the employee and employer.

Workplace participation

Main articles: Co-determination and Industrial democracy

A legally binding right for workers as a group to participate in workplace management is acknowledged in some form in most developed countries. In a majority of EU member states (for example, Germany, Sweden, and France), the workforce has a right to elect directors on the board of large corporations. This is usually called "codetermination" and currently most countries allow for the election of one-third of the board, though the workforce can have the right to elect anywhere from a single director, to just under a half in Germany. However, German company law uses a split board system, in which a "supervisory board" appoints an "executive board". Under the Mitbestimmunggesetz 1976, shareholders and employees elect the supervisory board in equal numbers, but the head of the supervisory board with a casting vote is a shareholder representative. The first statutes to introduce board-level codetermination were in Britain, however, most of these measures, except in universities, were removed in 1948 and 1979. The oldest surviving statute is found in the United States, in the Massachusetts Laws on manufacturing corporations, introduced in 1919, however, this was always voluntary.

In the United Kingdom, similar proposals were drawn up, and a command paper produced named the Bullock Report (Industrial Democracy) was released in 1977 by the James Callaghan Labour Party government. Unions would have directly elected half of the board. An "independent" element would also be added. However, the proposal was not enacted. The European Commission offered proposals for worker participation in the "fifth company law directive", which was also not implemented.

In Sweden, participation is regulated through the "Law on board representation". The law covers all private companies with 25 or more employees. In these companies, workers (usually through unions) have a right to appoint two board members and two substitutes. If the company has more than 1,000 employees, this rises to three members and three substitutes. It is common practice to allocate them among the major union coalitions.

Information and consultation

Workplace statutes in many countries require that employers consult their workers on various issues.

Collective bargaining

Main article: Collective bargaining

Collective action

Main articles: Strike action and Picketing (protest)

 

Strikers gathering in Tyldesley, Greater Manchester in the 1926 United Kingdom general strike

Strike action is the worker tactic most associated with industrial disputes. In most countries, strikes are legal under a circumscribed set of conditions. Among them may be that:

• The strike is decided on by a prescribed democratic process (wildcat strikes are illegal).
• Sympathy strikes, against a company by which workers are not directly employed, may be prohibited.
• General strikes may be forbidden for example, among public safety workers, to maintain public order.

A boycott is a refusal to buy, sell, or otherwise trade with an individual or business. Other tactics include go-slow, sabotage, work-to-rule, sit-in or en-masse not reporting to work. Some labour law explicitly bans such activity, none explicitly allows it.

Picketing is often used by workers during strikes. They may congregate near the business they are striking against to make their presence felt, increase worker participation and dissuade (or prevent) strike breakers from entering the workplace. In many countries, this activity is restricted by law, by more general law restricting demonstrations, or by injunctions on particular pickets. For example, labour law may restrict secondary picketing (picketing a business connected with the company not directly with the dispute, such as a supplier), or flying pickets (mobile strikers who travel to join a picket). Laws may prohibit obstructing others from conducting lawful business; outlaw obstructive pickets allow court orders to restrict picketing locations or behaving in particular ways (shouting abuse, for example).

International labour law

See also: International Labour Organization, World Trade Organization, and Private international law

The labour movement has long been concerned that economic globalization would weaken worker bargaining power, as their employers could hire workers abroad to avoid domestic labour standards. Karl Marx said:

The extension of the principle of free trade, which induces between nations such a competition that the interest of the workman is liable to be lost sight of and sacrificed in the fierce international race between capitalists, demands that such organizations [unions] should be still further extended and made international.

The International Labour Organization and the World Trade Organization have been a primary focus among international bodies for regulating labour markets. Conflicts arise when people work in more than one country. EU law has a growing body of workplace rules.

International Labour Organization

Main articles: International Labour Organization and ILO Conventions

Following World War I, the Treaty of Versailles contained the first constitution of a new International Labour Organization (ILO) founded on the principle that "labour is not a commodity", and for the reason that "peace can be established only if it is based upon social justice". ILO's primary role has been to coordinate international labour law by issuing Conventions. ILO members can voluntarily adopt and ratify the Conventions. For instance, the first Hours of Work (Industry) Convention, 1919 required a maximum of a 48-hour week, and has been ratified by 52 out of 185 member states. The UK ultimately refused to ratify the Convention, as did many current EU members, although the Working Time Directive adopts its principles, subject to individual opt-out. ILO's constitution comes from the 1944 Declaration of Philadelphia and under the 1998 Declaration on Fundamental Principles and Rights at Work classified eight conventions as core.

These require freedom to join a union, bargain collectively and take action (Conventions No. 87 and 98), abolition of forced labour (29 and 105), abolition of labour by children before the end of compulsory school (138 and 182), and no discrimination at work (No. 100 and 111). Member compliance with the core Conventions is obligatory, even if the country has not ratified the Convention in question. To ensure compliance, the ILO is limited to gathering evidence and reporting on member states' progress, relying on publicity to create pressure to reform. Global reports on core standards are produced yearly, while individual reports on countries who have ratified other Conventions are compiled on a bi-annual or less frequent basis.

As one of the only international organizations with real enforcement power through trade sanctions, the WTO has been the target for calls by labour lawyers to incorporate global standards of the International Labour Organization.

Because the ILO's enforcement mechanisms are weak, incorporating labour standards in the World Trade Organization's (WTO) operation has been proposed. WTO oversees, primarily, the General Agreement on Tariffs and Trade treaty aimed at reducing customs, tariffs and other barriers to import and export of goods, services and capital between its 157 member countries. Unlike for the ILO, contravening WTO rules as recognized by the dispute settlement procedures opens a country to retaliation through trade sanctions. This could include reinstatement of targeted tariffs against the offender.

Proponents have called for a "social clause" to be inserted into the GATT agreements, for example, by amending Article XX, which provides an exception that allows imposition of sanctions for breaches of human rights. An explicit reference to core labour standards could allow comparable action where a WTO member state breaches ILO standards. Opponents argue that such an approach could undermine labour rights, because industries, and therefore workforces could be harmed with no guarantee of reform. Furthermore, it was argued in the 1996 Singapore Ministerial Declaration 1996 that "the comparative advantage of countries, particularly low-age developing countries, must in no way be put into question." Some countries want to take advantage of low wages and fewer rules as a comparative advantage to boost their economies. Another contested point is whether business moves production from high wage to low wage countries, given potential differences in worker productivity. Since GATT, most trade agreements have been bilateral. Some of these protect core labour standards. Moreover, in domestic tariff regulations, some countries give preference to countries that respect core labour rights, for example under the EC Tariff Preference Regulation, articles 7 and 8.

Work in multiple countries

Main article: Conflict of laws

Conflicts of laws (or private international law) issues arise where workers work in multiple jurisdictions. If a US worker performs part of her job in Brazil, China and Denmark (a "peripatetic" worker) an employer may seek to characterize the employment contract as governed by the law of the country where labour rights are least favourable to the worker, or seek to argue that the most favourable system of labour rights does not apply. For example, in a UK labour law case, Ravat v Halliburton Manufacturing and Services Ltd Ravat was from the UK but was employed in Libya by a German company that was part of Halliburton. He was dismissed by a supervisor based in Egypt. He was told he would be hired under UK law terms and conditions, and this was arranged by a staffing department in Aberdeen. Under the UK Employment Rights Act 1996 he would have a right to claim unfair dismissal, but the Act left open the question of the statute's territorial scope. The UK Supreme Court held that the principle would be that an expatriate worker, would be subject to UK rules if the worker could show a "close connection" to the UK, which was found in Rabat's case.

This fits within the general framework in the EU. Under EU Rome I Regulation article 8, workers have employment rights of the country where they habitually work. They may have a claim in another country if they can establish a close connection to it. The Regulation emphasises that the rules should be applied with the purpose of protecting the worker.

It is also necessary that a court has jurisdiction to hear a claim. Under the Brussels I Regulation article 19, this requires the worker habitually works in the place where the claim is brought or is engaged there.

EU law

Main articles: EU law, European labour law, and Directive on services in the internal market

The European Union has extensive labour laws that officially exclude (according to the Treaty on the Functioning of the European Union) matters around direct wage regulation (e.g. setting a minimum wage), the fairness of dismissals and collective bargaining. A series of Directives regulate almost all other issues, for instance the Working Time Directive guarantees 28 days of paid holiday, the Equality Framework Directive prohibits all forms of discrimination and the Collective Redundancies Directive requires that proper notice is given and consultation takes place on decisions about economic dismissals.

However, the European Court of Justice has recently extended the Treaties provisions via case law. Trade unions have sought to organize across borders in the same way that multinational corporations have organized production globally. Unions have sought to take collective action and strikes internationally. However, this coordination was challenged in the European Union in two controversial decisions. In Laval Ltd v Swedish Builders Union a group of Latvian workers were sent to a construction site in Sweden. The local union took industrial action to make Laval Ltd sign up to the local collective bargaining agreement. Under the Posted Workers Directive, article 3 lays down minimum standards for foreign workers so that workers receive at least the minimum rights that they would have in their home country in case their place of work has lower minimum rights. Article 3(7) says that this "shall not prevent application of terms and conditions of employment which are more favourable to workers". Most people thought this meant that more favourable conditions could be given than the minimum (e.g., in Latvian law) by the host state's legislation or a collective agreement. However the European Court of Justice (ECJ) said that only the local state could raise standards beyond its minimum for foreign workers. Any attempt by the host state, or a collective agreement (unless the collective agreement is declared universal under article 3(8)) would infringe the business' freedom under TFEU article 56. This decision was implicitly reversed by the European Union legislature in the Rome I Regulation, which makes clear in recital 34 that the host state may allow more favourable standards. However, in The Rosella, the ECJ held that a blockade by the International Transport Workers Federation against a business that was using an Estonian flag of convenience (i.e., saying it was operating under Estonian law to avoid labour standards of Finland) infringed the business' right of free establishment under TFEU article 49. The ECJ said that it recognized the workers' "right to strike" in accordance with ILO Convention 87, but said that its use must be proportionately to the right of the business' establishment.

National labour laws

Australia

Main article: Australian Labour Law

The Fair Work Act of 2009 provides the regulations governing Australian workplaces and employers. Australia has a minimum wage and workplace conditions overseen by the Fair Work Commission.

Canada

Interior of one of the Eaton's factories in Toronto, Canada

 

Main article: Canadian labour and employment law

In Canadian law, "labour law" refers to matters connected with unionized workplaces, while "employment law" deals with non-unionized employees.

In 2017, Premier Brad Wall announced that Saskatchewan's government is to cut 3.5 per cent from its workers and officers' wages in 2018. This salary cut includes MLA ministers and the Premier's office staff along with all people employed by the government. Unpaid days off will also be implemented as well as limiting overtime to assist the wage cut.

China

Further information: Labour Law of the People's Republic of China and Labour Contract Law of the People's Republic of China

In China the basic labour laws are the Labour Law of People's Republic of China (promulgated on 5 July 1994) and the Labour Contract Law of the People's Republic of China (adopted at the 28th Session of the Standing Committee of the 10th National People's Congress on June 29, 2007, effective from January 1, 2008). The administrative regulations enacted by the State Council, the ministerial rules and the judicial explanations of the Supreme People's Court stipulate detailed rules concerning various aspects of employment. The government-controlled All China Federation of Trade Unions is the sole legal labour union. Strikes are formally legal, but in practice are discouraged.

France

Main article: French labour law

In France, the first labour laws were Waldeck Rousseau's laws passed in 1884. Between 1936 and 1938 the Popular Front enacted a law mandating 12 days (2 weeks) each year of paid vacation for workers, and a law limited the work week to 40 hours, excluding overtime. The Grenelle accords negotiated on May 25 and 26th in the middle of the May 1968 crisis, reduced the working week to 44 hours and created trade union sections in each enterprise. The minimum wage was increased by 25%. In 2000, Lionel Jospin's government enacted the 35-hour workweek, reduced from 39 hours. Five years later, conservative prime minister Dominique de Villepin enacted the New Employment Contract (CNE). Addressing the demands of employers asking for more flexibility in French labour laws, the CNE sparked criticism from trade unions and opponents claiming it favoured contingent work. In 2006, he then attempted to pass the First Employment Contract (CPE) through a vote by emergency procedure, but that was met by students and unions' protests. President Jacques Chirac finally had no choice but to repeal it.

India

Main article: Indian labour law

Over fifty national and many more state-level laws govern work in India. So for instance, a permanent worker can be terminated only for proven misconduct or habitual absence. In the Uttam Nakate case, the Bombay High Court held that dismissing an employee for repeated sleeping on the factory floor was illegal – the decision was overturned by the Supreme Court of India two decades later. In 2008, the World Bank criticized the complexity, lack of modernization and flexibility in Indian regulations. In the Constitution of India from 1950, articles 14–16, 19(1)(c), 23–24, 38, and 41-43A directly concern labour rights. Article 14 states everyone should be equal before the law, article 15 specifically says the state should not discriminate against citizens, and article 16 extends a right of "equality of opportunity" for employment or appointment under the state. Article 19(1)(c) gives everyone a specific right "to form associations or unions". Article 23 prohibits all trafficking and forced labour, while article 24 prohibits child labour under 14 years old in a factory, mine or "any other hazardous employment".

Articles 38–39, and 41-43A, however, like all rights listed in Part IV of the Constitution are not enforceable by courts, rather than creating an aspirational "duty of the State to apply these principles in making laws".[3] The original justification for leaving such principles unenforceable by the courts was that democratically accountable institutions ought to be left with discretion, given the demands they could create on the state for funding from general taxation, although such views have since become controversial. Article 38(1) says that in general the state should "strive to promote the welfare of the people" with a "social order in which justice, social, economic and political, shall inform all the institutions of national life. In article 38(2) it goes on to say the state should "minimise the inequalities in income" and based on all other statuses. Article 41 creates a "right to work", which the National Rural Employment Guarantee Act 2005 attempts to put into practice. Article 42 requires the state to "make provision for securing just and human conditions of work and for maternity relief". Article 43 says workers should have the right to a living wage and "conditions of work ensuring a decent standard of life". Article 43A, inserted by the Forty-second Amendment of the Constitution of India in 1976,[4] creates a constitutional right to codetermination by requiring the state to legislate to "secure the participation of workers in the management of undertakings". The recently released New Labour Codes 2022 mentions that organizations can convert 9-hour shifts to 12-hour shifts and provide three days of leave every week. The 4-day workweek policy will be effective from 1st July 2022.

Also read: Labour Reforms by Government of India Ministry of Labour & Employment (https://labour.gov.in/labour-reforms)

Indonesia

Indonesia essentially rebuilt its labour law system in the early 2000s following regime change and with support of the ILO. These three statutes also constituted a new legislative framework for industrial relations:

1.     Law No. 21 of 2000 on Trade Unions, which allowed free unionization; and

2.     Law No. 13 of 2003 on Manpower, which legislated other minimum labour rights; and

3.     Law No. 2 of 2004 on Industrial Relations Disputes Settlement, established a new industrial relations dispute resolution system.

Iran

Main article: Iranian labour law

Iran has not ratified the two basic Conventions of the International Labour Organization on freedom of association and collective bargaining and one abolishing child labour.

Israel

Main article: Israeli labor law

Japan

Main article: Japanese labor law

Mexico

Main article: Mexican labor law

Mexican labour law reflects the historic interrelation between the state and the Confederation of Mexican Workers. The confederation is officially aligned with the Institutional Revolutionary Party (the Institutional Revolutionary Party, or PRI). While the law promises workers the right to strike and to organize, in practice it is difficult or impossible for independent unions to organize.

South Africa

Main article: South African labour law

South African labour law is regulated by the Department of Employment and Labour and is based on the Labour Relations Act (LRA) 66 of 1995, which regulates the relationship between and rights of employers, employees and trade unions. The LRA also gives effect to Section 23 of the Constitution. The LRA lays out the procedures for dispute resolution via the Commission for Conciliation, Mediation and Arbitration (CCMA) and establishes the Labour Court and Labour Appeal Court as superior courts with exclusive jurisdiction to decide matters arising from the Act.

The Labour Relations Act also regulates the issue of fairness, not only in termination but during employment. In 1998, however, most of the laws on unfair labour practices were removed from the Labour Relations Act and placed into the newly formed Employment Equity Act (EEA). The EEA also deals with issues such as fairness regarding a worker's human immunodeficiency virus (HIV) status or disability, as well as the issue of affirmative action. Prior to 1995, an employee could be dismissed in terms of the contract of employment, which could permit any reason for dismissal. Since 1995 however, an employee may be dismissed only for misconduct, operational reasons and incapacity, given that procedural fairness is maintained. The Labour Relations Act 1995 is a pivotal piece of legislation, as it recognises the need for fast and easy access to justice in labour disputes. The Industrial Court had the status of a High Court, and therefore was not accessible to all labourers.

The Basic Conditions of Employment Act (BCEA), the Health and Safety Act and the Skills Development Act, must be read with the EEA. The Skills Development Act provides that a small percentage of a labourer's salary must be contributed to the Department of Labour, enabling certain workshops to be run which are designed to develop skills.

Sweden

See also: Swedish labour movement

In Sweden many workplace issues such as working hours, minimum wage and right to overtime compensation are regulated through collective bargaining agreements in accordance with the Swedish model of self-regulation, i.e. regulation by the labour market parties themselves in contrast to state regulation (labour laws). A notable exception is the Employment Protection act which regulates employment contracts and extensive employees' rights to employment under certain conditions.

Switzerland

Main article: Swiss labour law

The labour law of Switzerland covers all standards governing the employment of some kind. The regulation of the employment by private employers is largely harmonized at the federal level, while public-sector employment still prevails a variety of cantonal laws. In particular, the civil standardization is distributed to a variety of laws. Of greater importance, particularly the new Federal Constitution of 1999, the Code of Obligations, the Labour Code as well as in the public sector, the Federal Personnel Act.

United Kingdom

Main article: UK labour law

The Factory Acts (first one in 1802, then 1833) and the 1823 Master and Servant Act were the first laws regulating labour relations in the United Kingdom. Most employment law before 1960 was based upon contract law. Since then there has been a significant expansion primarily due to movements for equality and the legal requirements imposed by the UK's former membership of the European Union. UK employment law comes from Acts of Parliament, secondary legislation (made by a Secretary of State under an Act of Parliament), case law (developed by various courts), and retained Community law following the UK's departure from the EU.

The first significant expansion was the Equal Pay Act 1970, brought into to try to ensure pay equality for women in the workplace. Since 1997, changes in UK employment law include enhanced maternity and paternity rights, the introduction of a National Minimum Wage and the Working Time Regulations, which covers working time, rest breaks and the right to paid annual leave. Discrimination law has been tightened, with protection from discrimination now available on the grounds of age, religion or belief and sexual orientation as well as gender, race and disability.

United States

Main article: United States labor law

 

An American builder

The Fair Labor Standards Act of 1938 set the maximum standard work week to 44 hours. In 1950 this was reduced to 40 hours. A green card entitles immigrants to work, without requirement a separate work permit. Despite the 40-hour standard maximum work week, some lines of work require more than 40 hours. For example, farm workers may work over 72 hours a week, followed by at least 24 hours off. Exceptions to the break period exist for certain harvesting employees, such as those involved in harvesting grapes, tree fruits and cotton.

Professionals, clerical (administrative assistants), technical, and mechanical employees cannot be terminated for refusing to work more than 72 hours in a work week. These ceilings, combined with a competitive job market, often motivate American workers to work more hours. American workers on average take the fewest days off of any developed country.

The Fifth and Fourteenth Amendments of the United States Constitution limit the power of the federal and state governments to discriminate. The private sector is not directly constrained by the Constitution, but several laws, particularly the Civil Rights Act of 1964, limit the private sector discrimination against certain groups. The Fifth Amendment has an explicit requirement that the Federal Government not deprive individuals of "life, liberty, or property", without due process of law and an implicit guarantee that each person receive equal protection of the law. The Fourteenth Amendment explicitly prohibits states from violating an individual's rights of due process and equal protection. Equal protection limits the State and Federal governments' power to discriminate in their employment practices by treating employees, former employees, or job applicants unequally because of membership in a group, like a race, religion or sex. Due process protection requires that employees have a fair procedural process before they are terminated if the termination is related to a "liberty", like the right to free speech, or a property interest.

The National Labor Relations Act, enacted in 1935 as part of the New Deal legislation, guarantees workers the right to form unions and engage in collective bargaining.

The Age Discrimination in Employment Act of 1967 prohibits employment discrimination based on age with respect to employees 40 years of age or older.

Title VII of the Civil Rights Act is the principal federal statute with regard to employment discrimination, prohibiting unlawful employment discrimination by public and private employers, labour organizations, training programmes and employment agencies based on race or colour, religion, sex and national origin. Retaliation is also prohibited by Title VII against any person for opposing any practice forbidden by statute, or for making a charge, testifying, assisting, or participating in a proceeding under the statute. The Civil Rights Act of 1991 expanded the damages available to Title VII cases and granted Title VII plaintiffs the right to jury trial.

Halakhah (Jewish religious law)

The beginnings of halakhic labour law are in the Bible, in which two commandments refer to this subject: The law against delayed wages (Lev. 19:13; Deut. 24:14–15) and the worker's right to eat the employer's crops (Deut. 23:25–26). The Talmudic law—in which labour law is called "laws of worker hiring"—elaborates on many more aspects of employment relations, mainly in Tractate Baba Metzi'a. In some issues the Talamud, following the Tosefta, refers the parties to the customary law: "All is as the custom of the region [postulates]". Modern halakhic labour law developed very slowly. Rabbi Israel Meir Hacohen (the Hafetz Hayim) interprets the worker's right for timely payment in a tendency that clearly favours the employee over the employer, but does not refer to new questions of employment relations. Only in the 1920s we find the first halakhic authority to tackle the questions of trade unions (that could easily be anchored in Talmudic law) and the right of strike (which is quite problematic in terms of Talmudic law). Rabbis A.I Kook and B.M.H. Uziel tend to corporatist settling of labour conflicts, while Rabbi Moshe Feinstein clearly adopts the liberal democratic collective bargaining model. Since the 1940s the halakhic literature on labour law was enriched by books and articles that referred to growing range of questions and basically adopted the liberal democratic approach.