Undoubtedly, employment relations in a country are influenced by its particular socio-cultural, normative and legal institutions (Black, 2001; Locke, 1995; Streeck, 1998; Syed, 2008; Tayeb, 1997). The institutional and socio-cultural environment is a complex web of rules and traditions that tend to constrain and specify the direction of labor relations in a society. The aim of this paper is to offer an Islamic perspective of employment relations and to highlight its possible implications for the relationship between employers, employees and state.