This chapter investigates the relationship between law and contract within the regulation of employment in the Public sector, in the light of its thirty years reform process. Due to the breadth of the subject, some crucial aspects have been selected such as recruitment, stabilization, career improvement and mobility; the extension of Labor Law to the Public sector and its limits; the collective relations system; the distinction between politics and management; equal opportunities and anti-discrimination provisions; and the transition from Administrative to civil Jurisdiction.