Abstract:
Labor law, in its practical reality, is grounded in a dual foundation in which the social objectives of protecting workers intersect with the economic requirements of productivity and the sustainability of production. This study, by examining the sociological and economic foundations of labor law, shows that the conflict between these two dimensions does not merely arise from theoretical disagreements but is deeply rooted in unequal power structures and the mechanisms of production in modern societies. From the perspective of the sociology of law, the employment relationship does not reach equilibrium without state intervention, and the structural inequality between worker and employer justifies protective state involvement. In contrast, labor economics suggests that any protective rule, if adopted without regard to its economic costs, may lead to reduced employment, weakened enterprises, and an expansion of informal employment.
Furthermore, it is demonstrated that labor law, in light of the justice-oriented principles of the Constitution of the Islamic Republic of Iran, possesses strong social and protective foundations, and the state, within this framework, is defined as the guarantor of social justice, employment, and social security. However, developments arising from the general policies of Article 44 of the Constitution, privatization, and the requirements of economic development have shifted the role of the state toward reducing direct administration and increasing efficiency, thus intensifying the conflict between the state’s social and economic obligations. An examination of labor legislation shows that, in certain instances, protective rules—implemented without complementary economic mechanisms—have produced counterproductive outcomes and have themselves become factors contributing to the exclusion of vulnerable groups from the labor market.
Therefore, overcoming this situation requires a rethinking of the role of the state, strengthening intermediary institutions, a precise distinction between mandatory and default rules, and establishing mechanisms for workers’ participation in workplace decision-making. Labor law can fulfill its function in providing justice and sustainable development only when, within a flexible and justice-oriented legal order, it organizes the relationship between the human worker and the logic of production in a stable equilibrium.