Analysis of Capital by Marx (Chapter 6)
The Buying and Selling of Labor Power

Carl Marx states in Chapter 6 that the labor market functionates similarly to other markets, but with several significant differences. These differences emerge because of the nature of labor.
In the model created by Marx labor is, on one hand, the commodity sold by the worker and bought by the employer. On the other hand, the supply of labor is determined by the capacity for labor (which does not imply that the worker will be selling his labor, but is the necessary condition for this, as the very nature of a human demands daily supply). The latter fact most often implies the necessity for the worker to sell his labor – in order to maintain his subsistence.
Another important distinction of labor from other commodities is that the “use-value of labor does not immediately pass into the hands of the buyer on the conclusion of the contract” [Marx, Capital, Chapter 6]. In other words, the employer cannot immediately receive profit from the worker’s labor. Therefore the payment for the labor cannot be done at once as well.
When the worker starts the contract with the employer, he is in fact giving credit to the employer until the worker receives payment for his labor. As a result of such crediting a significant loss of wages related with the bankruptcy of capitalists takes place.
I believe that working conditions and especially conditions related to terminating employment have to be regulated by the government in order to avoid such loss of wages and economical misbalance on the market.
On one hand, this measure is directed to securing the rights of the workers and guaranteeing the payment for their commodity (labor). Without proper regulation a lot of capitalists would be making profit on the time interval between the performance of labor by a worker and paying for this labor. While at labor market money, as usual, serve as the means of purchase and the means of payment (these two processes take place almost immediately), the time gap related with the nature of creating value with labor remains rather significant. Government regulation should take place in order to avoid misuse of the “credit” given by workers to the employers.
But on the other hand, the same regulation is necessary to protect the actions of capitalists as well. Since the employer (in most cases) does not get the direct profit on buying someone’s labor, loss of finance may occur because of the sudden breaking of the contract from the worker’s side. Therefore, law regulations also have to take into account the interests of the capitalist.
And finally, I believe that regulating labor market by the means of law is vital for the functioning of the whole production system. Since production is the main means of creating material values and increasing the common weal, any irregularities in the production and distribution process will result in the total worsening of economical conditions of the country (and possibly, world economy as well). Without exaggeration, the relations between employers and workers can be regarded as the main factor influencing this process. Therefore, economical stability cannot be realized without proper law regulation of employment relations, and especially the conditions for terminating employment.