The aim/objectives of this assignment are to explore employee relations in detail, including the internal and external factor impacting on employment relationship, psychological contract, and differences between fair and unfair dismissals, redundancy.
1. Understand the impact of employment law at the start of the employment relationship :
1. Internal and external factor that impact on the employment relationship:
The absolute melodious bond between employers and employees is crucial for the smooth running of an organisation, where there is a give and take relationship and there are various factor affecting the relationship Internally and Externally i.e. Organisational culture , historical context, performance, pay and reward, economic factor, technology factor, unemployment etc.
* Organisational culture is defined by many writers as being " the way we do things round here " It is manifested in the rituals of an organisational, in its people, dress, habits, working times and style, attitudes , office layout , almost every intangible aspect of its being. It is also perpetuated by stories, office gossip, heroes and heroines, decor, social life and the language that various parts of the organisation regularly use at work. (CIPD 2011)
* Psychological contract the term was first used in the early 1960s but became more popular following the economic downturn in the early 1990s.It has been defined as 'the perceptions of the two parties, employee and employer, of what their mutual obligations are towards each other'.(CIPD 2012). In which employers except commitment to goals and value, hard working, flexibility, honestly, be courteous to client and staff. In return employee except a pleasant and safe working environment, job security, pays commensurate with performance feedback, skill development aid to employability and fair treatment.
*Technological factor: Due to the ever growing demand of technology there are advantage and disadvantage. There are development in energy sources, mobile technology and medical discoveries etc. These help employees to develop the skills and training. And the same may also create a gap in the market or barrier for the entry in the given market, which may de-motive staff.
Economical factor: Slow economic growth/ decline may result in employees just fortunate of having a job. Due to the euro crisis, lowest interest rate, exchange rates and inflation rate, wage rates and unemployment.
2. The different types of employment status:
There are three main categories of employment status such as Employee: Has a contract of service, have set working hours, have options of paternal leave, have rights of unfair dismissal. Workers: Does the work personally, either may have set working hours; contract may be verbal or written, they usually work for fixed time, doesn’t have rights of unfair dismissal. Business/ Genuinely Self- Employed: They contract for service and employers are the customers, they have a set of working hours, is contracted for each model of work – either verbal or written, contracted by service not time and doesn’t hold any rights for unfair dismissal/ redundancy.
1.3 Identify and analyse the reasons why it is important to determine an individual’s employment status:
Below are the 3 major employment status and reasons for the importance of identifying them:
Permanent: An employee has a permanent contract, has access to all the perks and benefits in the firm. Under the Employment Rights Act 1996 permanent employees are entitled to written terms and conditions after 8 weeks of employment and once they have acquired continuous employment for a certain period of time they acquire certain rights (e.g. 1 year for right to claim unfair dismissal; 2 years for redundancy...