Labour law (also spelled as "labor" law or called "employment law") mediates the relationship between workers (employees), employers, trade unions and the government. Collective labour law relates to the tripartite relationship between employee, employer and union. Second, individual labour law concerns employees' rights at work and through the contract for work. The labour movement has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and economic development since the Industrial Revolution. Employment standards are social norms (in some cases also technical standards) for the minimum socially acceptable conditions under which employees or contractors will work. Government agencies (such as the former U.S. Employment Standards Administration) enforce employment standards codified by labour law (legislative, regulatory, or judicial).
Labour law history
Main article: History of labour law
Labour law arose due to the demand for workers to have better
conditions, the right to organize, or, alternatively, the right to work
without joining a labour union, and the simultaneous demands of
employers to restrict the powers of workers' many organizations and to
keep labour costs low. Employers' costs can increase due to workers
organizing to achieve higher wages, or by laws imposing costly
requirements, such as health and safety or restrictions on their free
choice of whom to hire. Workers' organizations, such as trade unions,
can also transcend purely industrial disputes, and gain political
power. The state of labour law at any one time is therefore both the
product of, and a component of, struggles between different interests in
society.Individual labour law
Labour law partly concerns the inequality of bargaining power between employers and employees.
Contract of employment
Main articles: Employment contract and At-will employment
The basic feature of labour law in almost every country is that the
rights and obligations of the worker and the employer between one
another are mediated through the contract
of employment between the two. This has been the case since the
collapse of feudalism and is the core reality of modern economic
relations. Many terms and conditions of the contract are however implied
by legislation or common law, in such a way as to restrict the freedom
of people to agree to certain things to protect employees, and
facilitate a fluid labour market. In the U.S. for example, 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 an illegal reason, including a termination in violation
of public policy.[1]One example in many countries[2] 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 is expected; in terms of wages, holiday rights, notice in the event of dismissal, job description and so on. An employer may not legally offer a contract in which the employer pays the worker less than a minimum wage. An employee may not for instance agree to a contract which allows an employer to dismiss them unfairly. There are certain categories that people may simply not agree to because they are deemed categorically unfair. However, this depends entirely on the particular legislation of the country in which the work is.[3]
Minimum wage
Main article: Minimum wage
There may be law stating the minimum amount that a worker can be paid per hour. 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 and others have laws of this kind.[citation needed] The minimum wage is usually different from the lowest wage 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 have not.- Minimum wages are regulated and stipulated also in some countries that lack specific laws. In Sweden, for instance, minimum wages are negotiated between the labour market parties (unions and employer organisations) through collective agreements that also cover non-union workers and non-organised employers.
Living wage
Main article: Living wage
The Living wage is higher than the minimum wage. All industrialized
countries are discussing Living wage, while many developing countries
are still grappling with minimum wage. Clain, S. (2008). How Living Wage
Legislation Affects U.S. Poverty Rates. Journal Of Labor Research,
29(3), 205-218. doi:10.1007/s12122-007-9028-8.Working time
See also: Eight-hour day
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,
with 14–15 hours being the norm, and 16 not at all uncommon. Use of child labour
was commonplace, often in factories. In England and Scotland in 1788,
about two-thirds of persons working in the new water-powered textile
factories were children.[9] The eight-hour movement's
struggle finally led to the first law on the length of a working day,
passed in 1833 in England, limiting 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.After England, Germany was the first European country to pass labour laws; Chancellor Bismarck's main goal being to undermine the Social Democratic Party of Germany (SPD). In 1878, Bismarck instituted a variety of anti-socialist measures, but despite this, socialists continued gaining seats in the Reichstag. The Chancellor, then, adopted a different approach to tackling socialism. To appease the working class, he enacted a variety of paternalistic social reforms, which became the first type of social security. The year 1883 saw the passage of the Health Insurance Act, 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 were established 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. However, it limited only under-age miners' hours, and it was not until the Third Republic that labour law was effectively enforced, in particular after Waldeck-Rousseau 1884 law legalizing trade unions. With the Matignon Accords, the Popular Front (1936–38) enacted the laws mandating 12 days (2 weeks) each year of paid vacations for workers and the law limiting to 40 hours the workweek (outside of overtime).
- Lochner v. New York, 198 U.S. 45 (1905), a notorious, and now defunct case by the US Supreme Court that regulation of working time (for bakeries) to limit workers to a 10-hour day.
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 textile workers.Anti-discrimination
Main article: Anti-discrimination law
This clause means that discrimination against employees is morally unacceptable and illegal, on a variety of grounds, in particular racial discrimination or sexist discrimination.Unfair dismissal
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 (CPE), the Longjumeau (Essonne) conseil des prud'hommes (labour law court) judged the New Employment Contract (CNE) 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 no. 158, ratified by France.[10][11]Child labour
Main article: Child labour
Two girls wearing banners in Yiddish and English with the slogan "Abolish child slavery!!" at the 1909 May Day parade in New York City
Collective labour law
Collective labour law concerns the tripartite relationship between employer, employee and trade unions. Trade unions, sometimes called "labour unions"Trade unions
Main article: Trade union
Some countries require unions to follow particular procedures before
taking certain actions. For example, some countries require that unions
ballot the membership to approve a strike or to approve using members'
dues for political projects. Laws may guarantee the right to join a
union (banning employer discrimination), or remain silent in this
respect. Some legal codes may allow unions to place a set of obligations
on their members, including the requirement to follow a majority
decision in a strike vote. Some restrict this, such as the 'right to work' legislation in some of the United States.Strikes
Main article: Strike action
Strikers gathering in Tyldesley in the 1926 General Strike in the U.K.
- 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 by a public order.
- Certain categories of person may be forbidden to strike (airport personnel, health personnel, teachers, police or firemen, etc.)
Pickets
Main article: Picketing (protest)
Picketing
is a tactic which is often used by workers during strikes. They may
congregate outside 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 labour law, by more general law restricting
demonstrations, or sometimes by injunctions on particular pickets. For
example, labour law may restrict secondary picketing (picketing a business not directly connected with the dispute, such as a supplier of materials), or flying pickets
(mobile strikers who travel to join a picket). There may be laws
against obstructing others from going about their lawful business (scabbing,
for example, is lawful); making obstructive pickets illegal, and, in
some countries, such as Britain, there may be court orders made from
time to time against pickets being in particular places or behaving in
particular ways (shouting abuse, for example).Workplace involvement
Main article: Industrial democracy
Workplace consolation statutes exist in many countries, requiring
that employers consult their workers on issues that concern their place
in the company. Industrial democracy refers to the same idea, but taken
much further. Not only that workers should have a voice to be listened
to, but that workers have a vote to be counted.Co-determination
Main articles: Co-determination and Industrial democracy
Originating in Germany, some form of co-determination (or Mitbestimmung)
procedure is practised in countries across continental Europe, such as
Holland and the Czech Republic, as well as Scandinavian countries (e.g.
Sweden). This involves the rights of workers to be represented on the
boards of companies for whom they work. The German model involves half
the board of directors being appointed by the company trade union.
However, German company law uses a split board system, with a
'supervisory board' (Aufsichtsrat) which appoints an 'executive board' (Vorstand).
Shareholders and unions elect the supervisory board in equal number,
except that the head of the supervisory board is, under co-determination
law, a shareholder representative. While not gaining complete parity,
there has been solid political consensus since the Helmut Schmidt social democrat government introduced the measure in 1976.In the United Kingdom, the similar proposals were drawn up, and a command paper produced named the Bullock Report (Industrial democracy). This was released in 1977 by the James Callaghan Labour government. This proposal involved a similar split on the board, but its effect would have been even more radical. Because British company law requires no split in the boards of directors, unions would have directly elected the management of the company. Furthermore, rather than giving shareholders the slight upper hand as happened in Germany, a debated 'independent' element would be added to the board, reaching the formula 2x + y. However, no action was ever taken as the UK slid into the winter of discontent. This tied into the European Commission's proposals for worker participation in the 'fifth company law directive', which was also never implemented.
In Sweden, this is regulated through the 'Law on board representation' (Lagen om styrelserepresentation). 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, three members and three substitutes are appointed by workers/unions. It is common practice that seats are divided between representatives from the major union coalitions.
International labour law
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See also: International Labour Organisation, World Trade Organisation, and Private international law
Since the industrial revolution the labour movement has been concerned how economic globalisation
would weaken the bargaining power of workers, as their employers could
move to hire workers abroad without the protection of the labour
standards at home.[14]
The International Labour Organization and the World Trade Organization
have been the primary focus among international bodies to reform labour
markets. Conflict of laws issues arise, determined by national courts,
when people work in more than one country, and EU law has a growing body
of rules regarding labour rights.International Labour Organization
Main article: International Labour Organization
Following World War One, the Treaty of Versailles contained the first constitution of a new International Labour Organisation
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".[15] The primary role of the ILO
has been to coordinate principles of international labour law by
issuing Conventions, which codify labour laws on all matters. Members of
the ILO can voluntarily adopt and ratify the conventions by enacting
the rules in their domestic law. For instance, the first Hours of Work (Industry) Convention, 1919
requires 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 states, although the Working Time Directive adopts its principles, subject to the individual opt-out.[16] The present constitution of the ILO comes from the Declaration of Philadelphia 1944, and under the Declaration on Fundamental Principles and Rights at Work 1998 classified eight conventions[17] as core. Together these require freedom to join a union, bargain collectively and take action (Conventions Nos 87 and 98) abolition of forced labour (29 and 105) abolition labour by children before the end of compulsory school (138 and 182) and no discrimination at work (Nos 100 and 111).
Compliance with the core Conventions is obligatory from the fact of
membership, 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, so that publicity will put
public and international pressure to reform the laws. 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 perhaps less frequent basis.World Trade Organization
As one of the only international organisations 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 Organisation.
Workers in multiple countries
Main article: Conflict of laws
While the debate over labour standards applied by the ILO and the WTO
seeks to balance standards with free movement of capital globally, conflicts of laws (or private international law)
issues arise where workers move from home to go abroad. If a worker
from America performs part of her job in Brazil, China and Denmark (a
"peripatetic" worker) or if a worker is engaged in Ecuador to work as an
expatriate abroad in France, an employer may seek to characterise the
contract of employment as being 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[22]
Mr Ravat was from the UK but was employed in Libya by a German company
that was part of the American multinational oil conglomerate, 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 unfair dismissal, but the Act left open what
the territorial scope of the statute was. The UK Supreme Court held that
the principle would be that for an expatriate worker, although the
general rule is that they will not have UK labour law rights, there
would be an exception if the worker could show a "close connection" to
the UK, and this was established through the contractual assurances
given to Mr Rabat.[23]This fits within the general framework in the EU. Under the EU Rome I Regulation article 8,[24] workers will have employment rights of the country where they habitually work. But exceptionally 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.[25]
It is also necessary that a court has jurisdiction to hear a claim. Under the Brussels I Regulation article 19,[26] this requires the worker habitually works in the place where the claim is brought, or is engaged there.
EU law
The European Union, unlike most international organisations, has an extensive system of labour laws, but officially excluding (according to the Treaty on the Functioning of the European Union) matters around direct wage regulation (e.g. setting a minimum wage), fairness of dismissals (e.g., a requirement for elected workers to approve 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 for people performing work, and the Collective Redundancies Directive requires that proper notice is given and consultation takes place before any decisions about economic dismissals are finalised.However, the European Court of Justice has recently expanded upon the Treaties through its case law. As well as having legal protection for workers rights, an objective of trade unions has been to organise their members across borders in the same way that multinational corporations have organised their production globally. In order to meet the balance of power that comes from ability of businesses to dismiss workers or relocate, unions have sought to take collective action and strikes internationally. However, this kind of coordination was been recently challenged in the European Union in two controversial decisions. In Laval Ltd v Swedish Builders Union[27] a group of Latvian workers were sent to a construction site in Sweden on low pay. The local Swedish Union took industrial action to make Laval Ltd sign up to the local collective agreement. Under the Posted Workers Directive, article 3 lays down minimum standards for workers being posted away from home so that workers always receive at least the minimum rights that they would have at home in case their place of work has lower minimum rights. Article 3(7) goes on to say 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, in an interpretation seen as astonishing by many, the ECJ said that only the posting state could raise standards beyond its minimum for posted workers, and any attempt by the host state, or a collective agreement (unless the collective agreement is declared universal under article 3(8)) would be an infringement of the business' freedom to provide services 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 also 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 recognised 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. The result is that the European Court of Justice's recent decisions create a significant imbalance between the international freedom of business, and that of labour, to bargain and take action to defend their interests.
National labour laws
British labour law
Main article: UK labour law
The Factory Acts (first one in 1802, then 1833) and the 1832 Master and Servant Act were the first laws regulating labour relations in the United Kingdom.
The vast majority of employment law before 1960 was based upon the Law
of Contract. Since then there has been a significant expansion primarily
due to the "equality movement"[28] and the European Union.[citation needed]
There are three sources of Law: Acts of Parliament called Statutes,
Statutory Regulations (made by a Secretary of State under an Act of
Parliament) and Case Law (developed by various Courts).The first significant modern day Employment Law Act was the Equal Pay Act of 1970 although as it was a somewhat radical concept it did not come into effect until 1972. This act was introduced as part of a concerted effort to bring about equality for women in the workplace. Since the election of the Labour Government in 1997, there have been many changes in UK employment law. These include enhanced maternity and paternity rights,[29] the introduction of a National Minimum Wage [30] and the Working Time Directive[31] which covers working time, rest breaks and the right to paid annual leave. Discrimination law has also 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.
Canadian labour law
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-unionised
employees.Chinese labour law
Main article: Chinese labour law
Labour Law in the People's Republic of China has become a very hot issue with the soaring numbers of factories and the fast pace of urbanization. The basic labour laws are the Labour Law of People's Republic of China (promulgated on 5 July 1994) and the Law of the People's Republic of China on Employment Contracts (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 the various aspects of the
employment relationship. Labour Union in China is controlled by the
government through the All China Federation of Trade Unions, which is also the sole legal labour union in Mainland China. Strike is formally legal, but in fact is discouraged.French labour law
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 limiting 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.[32] The minimum wage was also increased by 25%.[33] In 2000, Lionel Jospin's government then enacted the 35-hour workweek, down 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 was lending favour to contingent work. In 2006, he then attempted to pass the First Employment Contract (CPE) through a vote by emergency procedure, but that it was met by students and unions' protests. President Jacques Chirac finally had no choice but to repeal it.German labour law
Main article: German labour law
Indian labour law
Main article: Indian labour law
Iranian labour law
Main article: Iranian labour law
| This section requires expansion. (June 2008) |
Japanese labour law
Main article: Japanese employment law
Mexican labour law
Main article: Mexican labor law
Mexican labour law governs the process by which workers in Mexico may
organize labour unions, engage in collective bargaining, and strike.
Current labour law reflects the historic interrelation between the state
and the Confederation of Mexican Workers, the labour confederation
officially aligned with the Institutional Revolutionary Party (the
Institutional Revolutionary Party, or PRI), which ruled Mexico under
various names for more than seventy years. While the law, on its face,
promises workers the right to strike and to organize, in practice it
makes it difficult or impossible for independent unions to organize
while condoning the corrupt practices of many existing unions and the
employers with which they deal.INTRODUCTION After Independence it was largely felt that the labour policy must emphasize upon self-reliance on the part of the workers. Since independence til 1954, all official pronouncement emphasize that labour shall become self-reliant. An equally forcefull view had been to prefer relance upon the government paid reliance on three party approach, namely the Trade union representing the workers, the employers, and the government. Out of the three the role the government is more important. Annual labour conferences and the permanent standin labour committee serverd as the chief instrument of tripartism. These conferences advocates, amongst amny things: viz, wokers participation in management, worker's education, worker's committees and minimum wage legislations.
Swedish labour law
Swedish labour law is from an international perspective comparatively 'thin'. This is because many of the issues and areas that in other countries are regulated through state or federal law, e.g., working hours, minimum wage and right to overtime compensation, in Sweden instead are regulated through collective agreements between trade union and employer organisation representatives.United States labor law
Main article: United States labor law
The Fair Labor Standards Act of 1938 set the maximum standard work week to 44 hours, and in 1950 this was reduced to 40 hours. A green card entitles legal immigrants to work just like US citizens, without requirement of work permits. Despite the 40-hour standard maximum work week,[34][citation needed]
some lines of work require more than 40 hours to complete the tasks of
the job. For example, if you prepare agricultural products for market
you can work over 72 hours a week, if you want to, but you cannot be
required to. If you harvest products you must get a period of 24 hours
off after working up to 72 hours in a seven-day period.[citation needed]
There are exceptions to the 24-hour break period for certain harvesting
employees, like 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.[citation needed]
These high-hour ceilings, combined with a competitive job market, often
motivate American workers to work more hours than required. American
workers consistently take fewer vacation days than their European
counterparts, and on average take the fewest days off of any developed
country.[35]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 ability of the private sector to discriminate against certain classes in employment. The Fifth Amendment[36] has an explicit requirement that the Federal Government not deprive individuals of "life, liberty, or property", without due process of the law and an implicit guarantee that each person receive equal protection of the laws. The Fourteenth Amendment[37] 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 Age Discrimination in Employment Act of 1967 prohibits employment discrimination based on age with respect to employees 40 years of age or older. This Act was created to promote employment of older persons based on their ability rather than age; to prohibit arbitrary age discrimination in employment; to help employers and workers find ways of meeting problems arising from the impact of age on employment because in the face of rising productivity and affluence, older workers find themselves disadvantaged in their efforts to retain employment, and especially to regain employment when displaced from jobs; the setting of arbitrary age limits regardless of potential for job performance has become a common practice, and certain otherwise desirable practices may work to the disadvantage of older persons; the incidence of unemployment, especially long-term unemployment with resultant deterioration of skill, morale, and employer acceptability is, relative to the younger ages, high among older workers; their numbers are great and growing; and their employment problems grave; and the existence in industries affecting commerce, of arbitrary discrimination in employment because of age, burdens commerce and the free flow of goods in commerce.
Title VII of the Civil Rights Act[38] 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[38] 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[38] cases and granted Title VII[38] plaintiffs the right to jury trial.
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. This legislation and its subsequent amendments are also key elements of U.S. labour law.
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