Supporting Good Practice in Managing Employee Relations

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SUPPORTING GOOD PRACTICE IN MANAGING EMPLOYMENT RELATIONS

GUIDANCE LEAFLET

1.The impact of employment law at the start of the employment relationship

1.1.2 internal and 2 external factors that impact on the employment relationship

A number of factors can have an impact on the relationship between employees and employers which can be identified as internal and external factors.

Internal factors include:

oPay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but react positively to training and development to enhance their career progression.

oOrganisation Culture – this concentrates on the behaviour and morals of employees within a company. The culture can have a huge effect on the employment relationship. For example, if there is the ethos of flexible working hours and employee involvement, then it stands to reason that the employees will be more likely to accede to any changes in the terms and conditions of their employment.

External factors include:

oPay and Rewards – the competition for better rewards can result in employees demanding extra pay and benefits. However, a decline in the current economic growth has diminished demands resulting in less conflict. In times of slow economic growth, many employees are simply grateful to have a job, although the need to still earn a certain level of income remains the same.

oTechnology – new, and improvements to existing technology can result in redundancies and reduced hours. This can affect the remainder of the employees who may feel demotivated and left wondering if they will be next. However, employees can use this to their advantage by training and developing new skills in different areas meaning they can demand extra pay.

1.2.3 different types of employment status

Permanent employees

Agency workers

Self-employed


1.3.The reasons why it is important to clearly determine an individual’s employment status

Permanent employees have a contract of employment which is legally binding. By law , permanent employees will receive a written copy of their contract within 8 weeks of the commencement of their employment. Usually benefits and pay commence on the first day of the employment – for example holiday entitlement and joining a pension scheme. Subject to continuous employment over a period of time, employees can gain access to additional rights and benefits. These can include the right to claim for unfair dismissal (after 1 year of continuous employment) and the right to redundancy payments (after 2 years of continuous employment). It is important to note that permanent employees can include both part- and full-time staff. The only difference is that part-time staff would receive any pay or reward on a pro rata basis.

Agency workers are now entitled to similar terms and conditions as those given to permanent staff . Under these regulations, agency workers can benefit from holiday pay, rest breaks and time of for ante-natal appointments (if the worker is pregnant). However, the agency worker needs to have worked in the same job with the same company for a qualifying period of 12 weeks for these regulations to apply. Some benefits are not covered by the regulations such as additional maternity/paternity leave.

A self-employed person is not an employee of the organisation and therefore employment legislation does not generally cover them. However, they are legally entitled to certain rights such as health and safety protection, fair treatment and breaks . Someone who is self-employed contracts for his/her service. He/she will set the hours of work and has no right to expect work. They are responsible for their invoices and...
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