This work analyzes and compares the labor law status of civil servants and employees in private sector in the Republic of Croatia. Conceptually, the meanings of civil servant and employee in the private sector are defined with methods of employment, termination of employment, and salaries and material rights of employees. The labor law status of employees throughout history is shown in general, and the labor law status of employees in selected countries of Europe, Germany and France is shown in particular. Finally, the labor law status of civil servants is compared with the labor law status of employees in the private sector through rights, obligations and responsibilities. The civil service, along with public services, represents the general interest of each individual state, and it is organized with the aim of creating conditions for the progress and development of the private sector, and providing services to all citizens within the scope of its work. The civil service is not organized to generate profit. Civil servants are obliged to represent the interests of the state, and they perform tasks that are within the competence of the state administration, and by that realizing the public interest. In the execution of jobs, civil servants are service providers, and not users of these services. The purpose and main goal of the private sector is to make profit, in such a way as to achieve the highest possible profit with as few costs as possible. Given that the employee and the employer enter into the relationship defined by the employment contract by mutual consent, their positions should be equal, which is not the case with civil servants.