Labour relations are one of the most important elements in ensuring social cohesion in the European Union. Given their significance, the founders of the EU have been concerned with the competencies given to the member states in regulating matters in their regard. The scope of this article is to examine the fundamental principal of the EU - conferral – which implies that the Union has only that authority conferred upon it by the EU treaties, which have been ratified by all member countries. Taking into account the political nature of the EU, is was only fair that matters in regard to employment policies were left in the competences of the sovereign member states, reserving the right of the EU to coordinate them. Nevertheless, in ensuring the fundamental human rights, including those related to employment, European Union must have the means to promote coherence and cohesion throughout its member states.