Both employment and labour are related the relationship regulating the world of work.
Basically, the contractual relationship between the employer and the employee is called employment. The contract regulating their relationships is called employment contract.
Labour, or as used in American English, labor, is the relationship between all parties involved in any labour issues.In addition to employer and employee,it most often includes the organization of the employees, namely the trade union or the workers' (or works ) council. The contract which regulates labour relationships is the so-called "collective agreement or collective bargaining agreement".
In summary, we may say that employment is reserved for the relationship between only the employer and the employee, while labour is used in a broader sense, involving other participant, too.
