Does Labour Law Trust Workers? Questioning Underlying Assumptions Behind Managerial Prerogatives

Abstract This article explores the relationship between modern labour law, trust-based management, and collective labour relations. It begins by examining the historical origins of labour law, which was established to give employers the means to govern their workforce, based on the assumption that workers were untrustworthy. We argue that this notion still persists, albeit in a refined form, and that advancements in technology can exacerbate the negative consequences of managerial prerogatives. The article highlights the need to re-examine the extent of managerial prerogatives and provides several examples of businesses that have adopted trust-based models of organization, leading to positive outcomes. However, the study cautions that trust-based models can be used as a guise for employers to retain greater control over their employees and emphasizes the critical role of collective labour relations in ensuring true trust. The article concludes by arguing that policymakers must challenge the hierarchy-centred model of the employment contract and promote practices that reinforce social dialogue and collective voice in order to reap the benefits of trust-based business practices. This study sheds light on the need to re-evaluate the current employment landscape and consider alternative models that prioritize trust, autonomy, and social dialogue in the workplace.