Bargaining Power in Labour Law and the Employment Contract

Drinking Water FiltersThere are a range of ways of thinking about the role and purpose of labor law in our society. The first way of thinking is called the protective philosophy of labor law which is that the main object of labor labor law is to be a countervailing force in society to counteract the inequality of bargaining power between employers and employees. This sentiment is attributed to the work of Ott Kahn-Freund who was a German jurispudential philosopher. The perceived power imbalance derives from the perpetual pattern observed in economics of the power imbalance between those willing to purchase labor and those seeking to sell it. It is generally considered to be much easier for an employer to replace their employees than for an employee to find a new job.

There are pressures on workers from the need for geographical mobility and the desire to maintain their existing personal and familial ties which means that many workers cannot easily meet the demands of workers.

Labor Law Sentiments