The aim/objectives of this assignment are to explore employee relations in detail, including the psychological contract, differences between fair and unfair dismissals, redundancy, and the direct link to my organisation. Pershing is a medium sized financial services company, who has seen strong growth over the last two years during the economic downturn.
1.0 Internal and external factors that impact on the employment relationship
1.1 When an employee starts a new company, there are many external and internal factors that impact on the employment relationship. One external factor is the state of the economy, in recent years the economy has experienced a recession. This has impacted businesses in many ways; one example is the case of redundancies, less capital means companies can no longer afford to keep all staff.
1.2 A second external factor is the social impact, for example, the retirement age has increased in recent years which has resulted in an older retained workforce, meaning that the retention of specialised skills and knowledge of the company will be a positive impact on the employment relationship.
1.3 On the other hand, there are also internal factors that impact the employment relationship. Firstly, employee participation, one example of this is to give employees a voice by distributing employee engagement surveys; this allows employees to express their views on the company and can motivate employees when actions are taken from their opinions.
1.4 Furthermore, control of performance can also be a vital internal factor. Managing employee’s performances in the process of appraisals can motivate staff to continue reaching individual objectives which contribute to company goals.
2.0 Three types of employment status and three reasons for the importance of identifying an individual’s employment status
2.1 One employment status is ‘self employment’ whereby a person will work for themselves rather than an employer. If you hire this type of worker it is important to make this definition as the company will not be accountable to make NI contributions or pay any employment tax on behalf of this type of worker.
2.2 A second employment status is a ‘worker’ which includes individuals working under a variety of contracts. It is important to establish this type of worker as they will be entitled to the core legal rights, they will be entitled to receive the National Minimum Wage and be protected against unlawful deduction from wages.
2.3 The Final employment status is an 'employee'. This is the most common status, and applies to the largest group of people in the workplace. The difference between workers and employees are that as an employee you have a wider range of employment rights and responsibilities to and from your employer, such as Statutory Sick Pay, and Statutory Redundancy Pay.
3.0 The importance of work life balance and how it can be influenced by legalisation.
Work-life balance is achieved when an individual's right to a fulfilled life inside and outside paid work is accepted and respected as the norm, to the mutual benefit of the individual, business and society. (Works Foundation). At Pershing we believe that it is important for employees to be able to balance their life at work and at home, as having an equal balance can lead to a motivated and retained workforce. Legalisation plays a vital role on how work-life balance can be implemented. The Working Time Regulations (1998) means that an employee cannot be forced to work more than 48 hours a week on average; meaning all employees can ensure they participate in personal external activities outside of the workplace, which in turn should reward Pershing with a dedicated and committed workforce.
4.0 Four areas of legal support given to the employee as a family member.
4.1 Pershing very much supports legislation that can offer legal support to...