Labour legislations provide guidelines to prevent unfair labour practices and organizational injustice. All employment and labour laws propose standards regarding wages, wellbeing, safety, and equitable treatment, which reduces conflicts. However, informational imbalances between employers and employees prevent employees from having adequate knowledge about labour legislation. Consequently, some employers treat employees inconsistently and that could be detrimental to them. A practical solution to this problem is making employees aware of the provisions of labour laws. As an initial step towards this, there is a definite need to assess employees' awareness regarding labour laws. Nevertheless, there is a lack of a standardized tool to measure the knowledge level of labour legislation, which has impaired empirical examinations. Using randomly collected 346 samples from two different types of industries, the present study constructed and validated a tool to measure labour law knowledge. The study has followed a simple scale development framework consisting of item generation, scale development, and psychometric evaluation. The measurement tool has been developed using exploratory and confirmatory factor analysis. The final questionnaire consists of 17 items under four factors, exhibited significant reliability and validity. The developed tool is expected to fill the gap in the literature and stimulate further empirical research. The study also examined the difference in the knowledge level based on the demographics of the sample. The results show a significant difference between the knowledge levels based on gender, citizenship, type of industry, and qualifications. Future research directions are proposed at the end of the paper, together with the limitations of this study.