Labor law arose due to the demands of workers for better conditions, the right to organize, and the simultaneous demands of employers to restrict the powers of workers' many organizations and to keep labor costs low. Employers' costs can increase due to workers organizing to win higher wages, or by laws imposing costly requirements, such as health and safety or equal opportunities conditions. Workers' organizations, such as trade unions, can also transcend purely industrial disputes, and gain political power - which some employers may oppose. The state of labor law at any one time is therefore both the product of, and a component of, struggles between different interests in society.
The adoption of legislation setting minimum requirements has improved labour standards and strengthened workers' rights and is one of European Union's main achievements in the field of social policy. Initially, EC labour law was designed with the aim of ensuring that the creation of the Single Market did not lead to a lowering of labour standards or distortions in competition. Today, labour law also has a key role in ensuring that a high level of employment and sustained economic growth is accompanied by continuous improvement of the living and working conditions throughout the European Union.