Labour embraces works producing fertile ground (7)
I believe the answer is:
topsoil
'fertile ground' is the definition.
'labour embraces works' is the wordplay.
'labour' becomes 'toil' ('toil' can be a synonym of 'labour').
'embraces' indicates putting letters inside.
'works' becomes 'ops' (I've seen this in other clues).
'toil' placed around 'ops' is 'TOPSOIL'.
'producing' is the link.
(Other definitions for topsoil that I've seen before include "surface of earth" , "Upper garden layer" , "best part of earth" , "Upper layer of earth" , "The Good Earth" .)