Employment Relationship

Table of Contents
Introduction: .................................................................................................................................... 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

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 organizations 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 unions 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 individuals 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

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 employees 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)

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 employees 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)

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.

 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 employees 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)

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References:
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: 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.keeblehawson.co.uk/News---

http://www.economicshelp.org/blog/economics/inflation-unemployment-relationship/ 7. Parental rights at work. (n.d.). Retrieved September 9, 2011, from

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 9, 2011, from www.ehow.com: http://www.ehow.com/list_7449266_factors-affectingindustrial-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 September 8, 2011, from www.citeman.com: http://www.citeman.com/12486-factorsinfluencing-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, 2011, from www.netdoctor.co.uk:

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, Kevin Williams. (2002). Work-Life Balance. Work-Life BalanceA Case of Social 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/Workersemploy eesandselfemployment/DG_183998 16. Understanding your employment status. (n.d.). Retrieved September 9, 2011, from http://www.direct.gov.uk: http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Workersemploy eesandselfemployment/DG_10027916 17. UNFAIR DISMISSAL. (n.d.). Retrieved September 9, 2011, from

http://www.roydens.co.uk: http://www.roydens.co.uk/content14.htm 18. Work-life Balance . (n.d.). Retrieved September 9, 2011, from www.healthatwork.org.uk: http://www.healthatwork.org.uk/pdf.pl?file=haw/files/Work-lifeBalance.pdf

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