Labour law is a system of legal provisions, which essentially regulate three areas. Individual labour law, as the most important discipline, was the first area to emerge in the course of time. It comprises legal relationships which occur when an employer (a legal or natural person) uses the force of an employee (a natural person) in exchange for remuneration. Such relationships between employers and employees are primarily governed by the Labour Code.

The second area (often closely linked with individual labour law) is collective labour law. This discipline deals with collective relations which exist between collectively represented employees (e.g. trade unions) and employers, including employer associations. In addition, collective agreements are covered as well. Collective labour relations are regulated by the Labour Code (the substantive part) and the Collective Bargaining Act (the procedural part and the subsidiarity of the Labour Code).

The third area which falls under labour law is the legal regulation of employment. It covers relationships which arise when a person exercises the right to acquire the means of his or her livelihood by work under Article 26 of the Charter of Fundamental Rights and Freedoms. The underlying relationships arise between citizens and the relevant state authorities (Ministry of Labour and Social Affairs and employment office), employers and the relevant state authorities, and citizens and employers. These relationships do not fall under the scope of the Labour Code, but are regulated by the Employment Act (Act No 435/2004 Sb.). Labour law historically developed mainly to protect the weaker party of the industrial relations, i.e. the employee. Even today we can regard the protective function as the most important and prevailing function of labour law. However, it is not the only purpose of labour law; the organizational function plays a different (but important) role too.

Labour law establishes a framework and conditions for work, defines the workload and remuneration and stipulates the rules for effective labour market. Likewise, it provides the employers with tools for managing their businesses and employees (both individually and collectively). Last but not least, labour law makes provisions for the participation of employees and their unions and bodies in company management.