There are two main forms of European Community legislation that deal with employment rights. One is the European Community Treaty itself, the other is the Directive.
The Treaty is the written constitution of the Community. It gives the Community its legal foundation and defines its powers. The clauses of the Treaty are known as Articles. Some Articles of the Treaty, set out in a section sometimes referred to as the Social Section, deal with social policy and employment issues. From an employment rights perspective, the most important Article in this Section is probably Article 141, which requires Member States to ensure that men and women receive equal pay for equal work. The Treaty can be amended with the agreement of all the Member States.
The other main form of Community legislation that deals with employment rights is the Directive. Directives set out broad principles of law that must be observed in each Member State, but leave the Member States' governments to decide how those broad principles should be translated into national law. A Directive will set a deadline, usually two or three years from the date it was adopted, by which it must be implemented in Member States. In the UK, the Government often implements EC Directives by adopting regulations (translating european law ) under the European Communities Act 1972. The Employment Equality (Religion or Belief) Regulations 2003, implementing the Equal Treatment Framework Directive, are a recent example.
If a Member State does not properly translate a Directive into national law by the due date, the European Commission will send the State a 'reasoned opinion', explaining why, in the Commission's view, the State has not complied with the Directive. If the State still does not act, the Commission may take the case to the European Court of Justice. If the Court decides that the State is at fault, it can require the State to pay a financial penalty.