"This article considers the interaction between labour law and employment policy at European Union (EU) level in the light of recent political and legal developments. It begins with a consideration of the relationship between labour law and policy as a function of the political compromise at the foundation of the EU (i.e., its establishment on an economic rather than social basis). This article then discusses the application of the relationship between labour law and policy in terms of the policy provisions of Directive 2000/78 (derogation on 'employment policy grounds') as opposed to the policy provisions of the atypical work directives (the policy of 'flexicurity'). It considers these directives in the light of the recent development of case law in this area (e.g., Case C-555/07, Kükükdeveci v. Swedex Gmbh & Co. KG and its relationship to C-144/04, Mangold v. Helm ) and illustrates the difficulties of the inclusion of policy objectives within the law. This article then goes on to assess the future relationship between law and policy in the EU and particularly the potential impact of incorporation of the Charter of Fundamental Rights and Freedoms 2000 into the Lisbon Treaty on the development of labour law and policy."

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