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The article states that in the conditions of a market economy it is important to have effective means of influencing labor relations, which would correspond to the mechanism of the market economy. One of such effective means of influence is a legal incentive. Legal incentives are the basis for the introduction of a stimulating regime for the development of the creative nature of work, interest in the results of one's work. With the help of incentives, it is possible to eliminate various problems that arise in the process of work and interaction of the parties to labor relations, strengthen labor discipline, increase the efficiency of work and enterprise management. It is emphasized that the essence of legal incentives and their impact on the consciousness of employees is carried out with the help of the informational and psychological side of legal regulation. From the point of view of psychological influence, the importance of means of stimulation lies in the fact that they contribute to the awareness of the continuously acting cause-and-effect relationship between productive labor activity and material situation, which in turn encourages the employee to carry out his labor activity in accordance with the requirements of the labor law regime. It is noted that the incentive regime is the application of legal incentives, their impact on the interests of employees. It influences not only the external behavior of the employee in the work process, but also his inner world - intelligence, subconsciousness, emotional and sensory sphere. The legal incentive is a motivating factor for the motivation of the employee's work, creates a stimulating regime in the enterprise, institution, organization to satisfy his interests and acts as a meaningful element in the functional characteristics of the latter. It is emphasized that such a regime is aimed at a purposeful change in the employee's behavior during the work process, during the performance of the work function in order to satisfy both his own needs and interests, as well as the needs and interests of the employer. The incentive regime operates only with positive means: incentives, benefits, permits, and therefore does not include means of a negative, unfavorable nature: obligations, prohibitions, restrictions.
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