European labour law

The fundamental principle of labour law is that employees' unequal bargaining power justifies substitution of rules in property and contract with positive social rights so that people may earn a living to fully participate in a democratic society.

Originally, the Ohlin Report of 1956 recommended that labour standards did not need to be harmonised, although a general principle of anti-discrimination between men and women was included in the early Treaties.

Increasingly, the absence of labour rights was seen as inadequate given the capacity for a "race to the bottom" in international trade if corporations can shift jobs and production to countries with low wages.

[9] The consistent jurisprudence of the European Court of Justice is that an employee is generally to be defined according to the fact that he or she is invariably the weaker party in an employment contract, and works under the direction of another.

Articles 45–48 state that workers have the right to move freely and work anywhere in the EU, without discrimination on grounds of nationality, subject to exceptions to preserve public policy, security and health.

While there is no wage regulation, the Institutions for Occupational Retirement Provision Directive 2003 requires that pension benefits are protected through a national insurance fund, that information is provided to beneficiaries, and minimum standards of governance are observed.

[30] This approach, which includes affirmation of the fundamental right to strike in all democratic member states,[31] has been seen as lying in tension with some of the Court of Justice's previous case law, notably ITWF v Viking Line ABP[32] and Laval Un Partneri Ltd v Svenska Byggnadsarbetareforbundet.

[33] These decisions suggested the fundamental right of workers to take collective action was subordinate to business freedom to establish and provide services.

The Collective Redundancies Directive 1998 specifies that minimum periods of notice and consultation occur if more than a set number of jobs in a workplace are at risk.

The Transfers of Undertakings Directive 2001 require that staff retain all contractual rights, unless there is an independent economic, technical or organisational reason, if their workplace is sold from one company to another.

[35] Today, the EU is required under TFEU article 147 to contribute to a "high level of employment by encouraging cooperation between Member States".

[36] This has not resulted in legislation, which usually requires taxation and fiscal stimulus for significant change, while the European Central Bank's monetary policy has been acutely controversial during the Eurozone crisis.

In December 2021, the European Commission published new draft legislation to ensure gig workers get a minimum wage, access to sick pay, holidays and general employment rights.

The European Social Charter 1961 art 2(1) requires "the working week to be progressively reduced" with "increase of productivity". [ 10 ] The Working Time Directive 2003 requires at least four paid weeks of holiday a year. [ 11 ] With two-day weekends , most people in the EU work two-thirds of the year or less. [ 12 ]
A majority of EU countries have legislation, including the Oxford University Act 1854 , which protect employees' right to vote for a corporation's management. This is reflected in the Employee Involvement Directive 2001 for European Companies .
US and EU unemployment rates, 1993–2009.