We deal with the progress of the regulation of the labour market during the process of transformation and accessing the European Union and its impact on competitive strength. We use set of indicators such as strictness of the labour market protection, unemployment benefits and duration of providing these benefits, union coverage and the level of the minimal wage. for comparison. We find out that the regulation of the labour market is very difficult category to measure. To judge the dimension of the regulation is necessary to look at indicators not individually but with complex view.