ABSTRACT
In this paper, the author explains the concept of economic analysis of law in understanding
labour law. The emphasis is on the philosophical and theoretical aspects of labour law
through the economic analysis of law perspective. Study of labour law in law schools has
always been based on a purely legal method or perspective, with an instruction approach
focused on statutes and case-law and with reference to a theoretical legal framework.
However, labour law is a subject with multi-dimensional roots and facets consisting of
components of sociology, economics, politics, religion and management disciplines. In this
paper, the author will introduce a method, the trans-disciplinary approach, that is relevant
to understanding the working of Malaysian labour law and that uses an economic analysis
of law perspective. The enactment of legislation is to a large extent propelled by economic
demand, which is apparent in labour law. The methodology used for discussion of this
paper is ‘legal analysis’. This new approach will not change the entire method of teaching
conventional labour law. The introduction of this new approach will only comprise 30% of
the current conventional labour law syllabus at Master level. Understanding the concept
of economic analysis of law will enhance students’ knowledge for future study of labour
law and economics.