Abstract Drawing on a case study of contemporary employment relations in tourism and catering in Greece, this paper seeks to contribute to our empirical understanding of employment law. Which factors determine the ways in which the law is perceived by employers and workers and complied with, breached or avoided? The main argument of the paper is that not only market forces are relevant here; several other factors need to be taken into consideration, which when combined with market forces can re-regulate as well as deregulate the field of employment. These tend to be informal, locally embedded and influenced by wider social relations. By constructing a simple matrix of employment settings based on locale and seasonality on one axis, and size of enterprise and scope of services provided on the other, the paper demonstrates how organisational and spatial parameters and the social environment interact with market forces and legal forces to shape prevailing norms and to influence the behaviour of parties to the contract for work. It further demonstrates that the structuring of the sectoral labour market is a process determined by broader social power dynamics. Beyond serving as part of the context within which contracting for work takes place, legal rules are a resource to be mobilised by both employers and workers.