According to the Labor Theory of Value, surplus value is the result of unpaid labor. In a capitalist system, workers are paid a wage which is less than the value they produce during their working day. The difference between what is produced and what is paid out in wages is known as surplus value. This can be seen when looking at how much time it takes for workers to produce goods or services compared to how much they are compensated for their labor.

The Labor Theory of Value explains that this difference occurs because capitalist employers exploit their employees by enabling them to receive only part of the total value that they create during their workday. For example, if it takes a worker 8 hours to make a shirt but he only receives 4 hours worth of wages for his labor then there has been an exploitation resulting in a surplus-value created over the course of those 8 hours.

This type of exploitation occurs due to inequalities within capitalism; some individuals have more power than others and this often leads them taking advantage those more vulnerable position through means such paying unequal wages despite same amount effort involved completion task given instance… Furthermore implies also having longer working day order increase profits thus why overtime usually encouraged amongst staff however still should taken into account fact person’s health safety remain top priority since cannot effectively perform duties required any job exhausted physically mentally -hence why importance setting limits regard employer employee relationship always kept front mind end day as key factor determining success failure company moving forward future!