Employment Relationship

Table of ContentsIntroduction:....................................................................................................................................3

Activity A........................................................................................................................................3

1. Factors Affecting Employment Relationship:..........................................................................3

2. Employment Status:.................................................................................................................4

Activity B.........................................................................................................................................5

1. Work Life balance:...................................................................................................................5

2. Legal Support for Employee as Family Member:....................................................................6

3. Fairness in Employee Compensation:......................................................................................7

4. Discrimination Legislation:......................................................................................................8

5. Psychological Contract:...........................................................................................................9

Activity C:.......................................................................................................................................9

1. Fair vs. Unfair Dismissals:.......................................................................................................9

2. Importance of Exit Interviews:.............................................................................................11

3. Managing Redundancies:.......................................................................................................11

References:....................................................................................................................................13

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Introduction:

The Employment Relationship is an important determinant of the extent to which the laws

regarding employment are enforced by an organization. The employee and the employer are

bound legally by the mere presence of this relationship and it gives rise to the existence of

reciprocal rights by which both are affected. A healthy employment relationship results in proper

enforcement of the applicable laws and legal obligations. It also results in increased efficiency

and productivity in the workplace. Effective management of employee relationship is essential in

avoiding any disputes that may arise between the employer and the employee and this would

require legal intervention to resolve the situation. (Employment Relationship, 2011)

Activity A

1. Factors Affecting Employment Relationship:

Various internal and external factors affect the employment relationship. Some of the key

internal factors are as follows:

Improper implications of labor laws and other legal obligations provided for the

employee would result in disharmony in the employment relationship. In cases where the

policies are not fairly applied in the organization, the morale of the workplace may take a

downfall; thereby affecting the employment relationship. (RAO, 2010)

Nepotism basically refers to the practice of recruiting relatives and closely related people

to work in the organization. Nepotism is said to benefit the organization by lowering the

training and recruitment costs, lowering employee turnover and ensuring higher levels of

loyalty, morale, sense of ownership and commitment. It however poses a problem by

giving rise to favoritism, increased chances of fraud, disciplinary issues as employers

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may hesitate to take actions against relatives working as employees, inability to

determine whether appraisals are made by actual merit or due to favoritism, breach of

confidentiality can occur as information is shared more easily among related members

and involvement of personal issues with professional decisions.(Prokosc, 2001)

The organizational structure and culture also affect the employment relations in a way

that any dissatisfaction caused by the work environment is bound to produce a negative

effect on the employment relationship. (RAO, 2010)

The external factors which affect the employment relationship are as follows:

Economic recession and inflation are a major cause for imbalance in the employment

relations. It leads to the employer being unable to satisfy the salary demand of the

employee which eventually results in the decrease in the organization’s workforce.

The management faces difficulty to manage the increased cost of operations and

employee demands simultaneously. (Inflation Unemployment Relationship, 2008)

Trade unions also intervene in the employment relations by collectively addressing

the issues of the employees to the management. The involvement of the third party in

the employment relations complicates matters and often results in the management

succumbing to the union’s demands. This leads to higher costs incurred on the

company. (Pell, 2010)

2. Employment Status:

Employment status can be classified as:

Worker (Workers work under third parties under contractual terms but cannot delegate

their responsibilities among others)

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Employees (Employees are technically similar to workers but have different rights and

obligations towards the employer and also enjoy different privileges, most prominent

being the ability to delegate work among subordinates.)

Self Employed (Self Employed people provide business for themselves and they are

responsible for the operation of the business. They enjoy independence from the

employment relationship and provide employment opportunities and services to others.)

(Types of employment status)

Identifying an individual’s employment status is crucial because of the following reasons:

To determine the benefits that can be availed as per the legal provisions.

To determine whether tax is deducted at source or has to paid individually.

To identify whether a steady source of income is generated or the income is varied in

nature.

To determine the extent of the rights and obligations endowed upon the individual.

(Understanding your employment status)

Activity B

1. Work Life balance:

Work life balance is attributed to achievement of career goals and also enjoying the work. Work

life balance is quintessential in boosting and maintaining the morale of the employees and this is

instrumental in reduction in absenteeism, better involvement in work, increased productivity,

significant reduction in work related stress and motivation in employees. Work time is an

important factor that by and large influences the balance. Irregular working hours or long

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working hours may deter employees from giving maximized output as it becomes difficult to

manage professional and personal lives and create a harmony between them. (Work-life Balance

)

The intervention of legislation in work life balance can influence it in the following manner:

Fixation of working hours to avoid irregularity in the work time would instill motivation

in the employees as he/she would not feel exploited.

Providing “Parental Leave” for employees so that they may fulfill their responsibilities

towards their family which includes caring for their children, elderly members and

related people. This is also beneficial to single parents as they can work without

compromising on the care of their offspring.

Part time employees should not be discriminated from regular employees as they differ

only in the working time. Remunerations and benefits should be equal to both.

Providing overtime wages if applicable and also awarding performance bonus and

incentives would create interest in the employee towards his/her work. (Sunil Joshi, John

Leichne, Keith Melanson, Cristina Pruna,Nicolai Sager, Cathi Jo Story, Kevin Williams,

2002)

2. Legal Support for Employee as Family Member:

Along with his professional commitments, the employee has to also take care of his

responsibilities towards his / her family. The employee as a family member can benefit from the

following legal support:

Employee Assistance Program is an effective legal support system which provides

solution to an employee’s family issues and also provides counseling for resolution of

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any such family oriented problems which might affect his/her professional life. This

service is provided free of charge to the employees whereas the expenses are borne by the

employer. (Employee Assistance Program)

Employees are entitled to take leave for taking care of their children and also elderly

family member. This leave can be availed from the time the child is born. Fathers can

avail of an Additional Paternity Leave of 26 weeks as per the legal provisions of the

Paternity Leave. (Sheasby, 2007)

Leaves taken for emergency situations are permitted without the burden of having to

decide between paid and unpaid leave.

Flexible working can be availed of by the employee so that the employee can tend to his

personal issues.

In the case of employees having disabled children (under 18 years of age), flexible

working hours may be provided. (Parental rights at work)

3. Fairness in Employee Compensation:

Employees must be treated fairly in relation to compensation to avoid discriminative practices.

The Equal Pay Act provides that employees operating in the same workplace must be given

equal pay without discriminating on the basis of sex, religion, caste, ethnicity, age, nationality or

disability. This is because the work allotted is similar and the task is performed equally. Hence

the need for discrimination does not arise. Moreover an unfair treatment with respect to payment

would result in employee dissatisfaction and loss of productivity in the workplace. (Equal

Pay/Compensation Discrimination)

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4. Discrimination Legislation:

The Equality Act of 2010 (enforced on 1st October, 2010) has categorized age, sex, religion,

sexual orientation, disability, marital status, prenuptial agreements and pregnancies as ‘Protected

Characteristics”.

The following are the areas of discrimination legislation:

Protection from discrimination is provided to individuals of all ages by this act. But the

employer can justify direct discrimination in respect to the employee’s age if he can

prove that by doing so can be instrumental in reaching a legitimate aim. However the age

of retirement remains as 65 years wherever retirement is applicable and the employee has

the right to ask for permission to work beyond the permitted age of working.

Individuals are also protected from discrimination and harassment (offensive behavior)

on the basis of their gender, sexual orientation (gay, lesbian, heterosexuals, and

bisexuals) and disability.

Married employees and employees who have entered into prenuptial agreements and civil

partnerships are provided protection from discrimination in the workplace. But the act

still does not offer any protection for “single” employees.

Discrimination on the basis of religion, caste and ethnicity is prevented by this act. Any

discrimination made would be a serious issue and no one should be treated unfairly

because of these protected characteristics. (The Equality Act 2010: protected

characteristics and types of discrimination, 2010)

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5. Psychological Contract:

A psychological contract is a non-written mutual belief between the employee and the employer

wherein expected obligations and rights are assumed to be followed by all involved. The good

practices that support organizational policies and contribute to the psychological contract are as

follows:

Existence of good relationships between employees at the workplace can develop a sense

of involvement and boost the morale of the employees.

The employees should be endowed with some control over their tasks in order to avoid

feelings with respect to lack of freedom to work independently.

The management / employer should delegate reasonable work loads, deadlines and

demands so that the employee may not succumb to work pressure.

The roles of the employee within the organization must be defined with pristine clarity so

that no ambiguity exists for the same.

Any organizational change that may directly or indirectly affect the employee should

have his/her involvement in the decision making process related to that change.

Support should be provided to the employee by his superiors as well as colleagues in

order to inculcate a healthy work environment. (Guest)

Activity C:

1. Fair vs. Unfair Dismissals:

A dismissal may be defined as termination of the employment by either of the following ways:

If the employer has dismissed an employee with or without any prior notice.

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If the employee has resigned with or without prior notice as a result of breach of

employment contract on behalf of the employer.

A short term contract has expired without renewal leading to the termination of the

employment agreement.

Fair dismissals follow a proper procedure wherein valid and legitimate reasons are provided by

the employer or employee for the dismissal. Statutory dismissal and disciplinary procedures were

enforced from 1st October, 2004. Under the provisions of these enforcements, a set procedure and

disciplinary action is to be followed prior to any dismissal. Failure to abide by these regulations

would render the dismissal as unfair.

Unfair reasons for dismissal show that the employee’s term of office was terminated on biased

grounds and no concrete evidence can be provided to show that the termination was genuine.

These reasons may include availing of maternity / paternity leave, availing membership of trade

union(s), applying for flexible working hours and seeking employment protection without any

wrong intentions.

Automatic unfair reasons for dismissal are attributed to those conditions under which the

dismissal will be automatically deemed unfair. It consists of a list of conditions which have been

stated by the tribunal to be used in cases of determining the fairness of a dismissal.

The Employment Rights Act 1996 permits employees to obtain reasons for their dismissal in

writing from the employer which has to be given within 14 days of receiving of this request.

Dissatisfaction with the reason or non receipt of a reason for dismissal permits the employee to

take the matter to the tribunal for proper judgment on the matter.

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The proper procedure involves a notice being given to the employee followed by disciplinary

actions being taken against the accused before actual dismissal taking place and also giving the

employee a chance to make an appeal for non dismissal. (UNFAIR DISMISSAL)

2. Importance of Exit Interviews:

Exit interviews are usually conducted by the HR department of an organization and employees

who have either resigned or have been laid off are interviewed on their views about the

organization. The process may either include the interviewer taking records of the interview or

the interviewee filling a questionnaire.

The importance of exit interviews is as follows:

It reveals the reasons behind employee dissatisfaction and enables the organization to

resolve the issues.

Exit interviews are instrumental in employee retention and also for improving the

employment relationship.

This also helps the company to avoid legal settlement of issues surrounding employees

and the organization and thereby save on unnecessary litigation costs.

Outstanding issues are also settled in such interviews and information about any

inventory given to the employee may be retrieved so that it may be traced and managed

accordingly. (Sarma)

3. Managing Redundancies:

Management of redundancies requires the following issues to be addressed:

Determining the genuineness of the redundancy scenario and the extent to which the

redundancy has occurred.

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Pool consideration and declaration of vacancies available.

In case of collective redundancy the Secretary of the State needs to be duly informed.

Organizing a meeting with the redundant employees.

Providing a written confirmation of the outcome of the meeting.

Preparing a scorecard for each redundant employee.

Communicating to selected redundant employees and mentioning detailed information

about the consultation and related aspects.

Organizing of an individual meeting with the selected redundant employees.

Following up of the suggestions and cater to any challenges to the score of the employee

and also allow any employee representations to be considered.

A second individual meeting is to be called under the circumstance that the employee has

been selected for redundancy and he/she may be permitted to bring along any

representative.

Issuance of the letter for dismissal of employee.

Hearing appeals (if any) made by the redundant employee. (Grindley)

References:

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1. Employee Assistance Program. (n.d.). Retrieved September 9, 2011, from

www.dhrm.state.va.us:

http://www.dhrm.state.va.us/genlbenefits/employeeassistance.html

2. Employment Relationship. (2011, June 30). Retrieved September 8, 2011, from

www.ilo.org: http://www.ilo.org/public/english/dialogue/ifpdial/areas/legislation/

employ.htm

3. Equal Pay/Compensation Discrimination. (n.d.). Retrieved September 9, 2011, from

www.eeoc.gov: http://www.eeoc.gov/laws/types/equalcompensation.cfm

4. Grindley, P. (n.d.). Redundancy procedure Checklist. Retrieved September 9, 2011,

from /www.keeblehawson.co.uk:

http://www.keeblehawson.co.uk/News---Articles/Redundancy-Procedure-Checklist.aspx

5. Guest, D. (n.d.). The Psychological Contract and Good Employment Relations. London,

U.K: Kings college,.

6. Inflation Unemployment Relationship. (2008, November 28). Retrieved Septemeber 9,

2011, from www.economicshelp.org:

http://www.economicshelp.org/blog/economics/inflation-unemployment-relationship/

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www.adviceguide.org.uk:

http://www.adviceguide.org.uk/index/your_money/employment/parental_rights_at_work.

htm

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8. Pell, N. (2010, December 4). factors affecting industrial relations. Retrieved September

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industrial-relations.html

9. Prokosc, R. (2001). Nepotism. Retrieved September 9, 2011, from

www.legacyhumancapital.com: http://www.legacyhumancapital.com/pdf/Nepotism.pdf

10. RAO, V. S. (2010, December 3). Factors influencing the personnel Function. Retrieved

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influencing-the-personnel-function/

11. Sarma, E. J. (n.d.). Why exit interviews are essential. Retrieved September 9, 2011, from

http://www.itpeopleindia.com/20020624/management1.shtml:

http://www.itpeopleindia.com/20020624/management1.shtml

12. Sheasby, R. (2007, February 22). A guide to paternity rights. Retrieved September 9,

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http://www.netdoctor.co.uk/health_advice/facts/paternity_rights_003737.htm

13. Sunil Joshi, John Leichne, Keith Melanson, Cristina Pruna,Nicolai Sager, Cathi Jo Story,

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Responsibility or Competitive Advantage? , 21.

14. The Equality Act 2010: protected characteristics and types of discrimination. (2010,

September 4). Retrieved September 9, 2011, from www.fpb.org:

http://www.fpb.org/hottips/601/The_Equality_Act_2010:_protected_characteristics_and_

types_of_discrimination.htm

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15. Types of employment status. (n.d.). Retrieved September 9, 2011, from

www.direct.gov.uk:

http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/

Workersemployeesandselfemployment/DG_183998

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http://www.direct.gov.uk:

http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/

Workersemployeesandselfemployment/DG_10027916

17. UNFAIR DISMISSAL. (n.d.). Retrieved September 9, 2011, from

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http://www.healthatwork.org.uk/pdf.pl?file=haw/files/Work-lifeBalance.pdf

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