The historical and institutional background of labor relations (also known as the era of free capitalism in the early industrialization) started from the industrial revolution to the first half of the 9th century. The state adopts a laissez-faire policy on the adjustment of labor relations. The contradiction between labor and capital in this period is mainly manifested in sharp class opposition and fierce class conflict. Under the early factory system, management was characterized by strict organization of troops and extensive use of child labor. ; In the process of early industrialization, the living conditions of workers did not improve with the development of economy. Due to excessive competition, polarization between the rich and the poor, and the alienation of goods and money to workers, the working and living conditions of workers have deteriorated sharply. Characteristics of labor relations: (1) The employers and employees have formed two directly opposite classes. (2) The workers' movement is generally in a decentralized, individual and local state, and the process of organized union between workers and the masses faces great resistance from the government and employers. (Association Law 1799- 1800 promulgated by Britain and Chabrie Law 179 1 promulgated by France). (3) The class struggle is sharp, and the contradiction between labor and capital is mostly manifested in the form of fierce confrontation and conflict. (4) the laissez-faire of the government