A Labor law has a significant importance in the present time. This law organizes & controls the relationship between employers and employees who �form or comprise the majority of the society �comprises the largest segment of the society. The increasing number of businesses, private establishments and companies in all their forms in our current time, necessarily required a growing need in number of employees to work in these institutions and companies. As a result, it demands a strict, developed and accurate labor laws to control the various labor relations and contracts that obligate the owners of these companies and institutions, in order to draw the boundaries of those relations, establishing its regulations and provisions to find appropriate solutions to any obstacles or disputes that may arise and be guarantor and articulated rights of both parties. The importance of this law is attributed to the depth of its impact in their lives. The main object of this law is the labor contract and the "Labor contract under probation" which is considered as the foundation stage for the formation of the labor relationship by representing the preliminary stage of establishing the contract. The duration of �contract under probation� allows the employee to evaluate work conditions and if it is appropriate for him/her, also the employers can assess the employee�s skills, honesty and qualifications for the work, then both parties decide if they want to continue which means the contract become as labor contract or they want to dismiss it during probation period.