Individual Labor Law - Definition & Meaning

Published in Human Resources Terms by MBA Skool Team

What is Individual Labor Law?

Individual Labor Law is a branch of law that deals with the relationship between the employer and employee, without involvement of trade unions. Any agreement which deals between employer and individual employee (which does not involve union) comes under Individual Labor Law.

Among the thousands of laws that control our day to day life, labor laws are one of the most important one. Labor laws mainly govern working people and their employers or organizations. Their aim is to deal with the conflicts and protect the relationship between employers and employees.

Labor laws can be broadly divided into two categories. They are Individual Labor Law and Collective Labor Law. Collective Labor Law deals with the employer and registered trade union.


Before the development of labor laws, the agreement between employer and employee was fully under the control of employers. Workmen were fully exploited, but it is not the situation anymore. Labor laws have contributed much to the social and economic development after the industrial revolution.

An employee enters into the individual labor contract when he/she is hired. The employee will have legal rights even when he/she doesn’t have written agreement, because even the verbal agreement is legally binding.


In some organizations employee may belong to one of the union from the time of the joining, in this case the issues are dealt collectively. But if the employee doesn’t belong to any union, then the employee is governed by Individual Labor Law. It deals with the all the matters related to employee recruitment, employment agreements like work, work place, working hours, pay, services for resolving problems, rates of public holidays, dismissal of employee, resignation of employee etc.

Hence, this concludes the definition of Individual Labor Law along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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