The main intent of this essay is to discuss whether wage earners and employees are paid based on market value, state edict, or operational needs of the company and so on . Indeed, Roberts (1972) implied that labor costs associated with compensation issues can be a determining factor in determining pay, for example, influenced by legal regulations and political environments in a specific nation, the dimensional view of the workforce and organizational decisions in top management. Why is pay an important issue for workers, employers and governments? Of course, pay is one of the most significant determinants of benefits for those who work and earn a living. So, to enable readers to better understand the issue, the explanation of the key term, remuneration, will come first. In general, “compensation” can refer to the salary and salary of the workforce, as well as the return for their efforts devoted to job tasks. In reference to the Oxford English Dictionary, "pay" has several explanations, and the most relevant will be as "...to give someone money due for work done, goods received, or a debt incurred..." (Oxford University Press, 2011) Furthermore, from an economic perspective, there are four types of production factors, namely land, labor, capital and entrepreneurship, used to describe resource input and used to create goods and services (Lipsey and Chrystal, 1999; Vengedasalam and Madhavan, 2007). In more specific terms, derived from the above terms, "work", combined together with the terms of remuneration, it can be decoded that the labor forces were charged and received wages and salaries for the labor services provided to the workers. employers. Like Edwa...... center of paper ......:At an early age, as in Kahn-Freund's account (1954 cited in Dickens and Hall, 2003, p.125), he quoted this from a the comment by a leading academic lawyer on the limited role of British employment law in the period from 1870 to the 1960s, as “There is perhaps no major country in the world in which the law has played a less significant role in shaping relationships industrial compared to Great Britain and where today law and the legal profession have less to do with employment relationships". Although such statements demonstrated that legislation in that period was not comprehensive enough to cover industrial relations issues, it implied that laws can play a vital role in such matters, bringing increasingly significant impacts as more and more areas are covered. Therefore, the methods of state intervention directly and indirectly will be discussed below.