Introduction In this report you will see brief examples describing internal and external factors that impact on the employment relationship and explanations of the different types of employment status that exist that an employer should be aware of. In this report I have identified and analysed the importance of the employment status. I have explained the importance of work life balance and how it can be influenced by legislation. You will find two examples of the legal support that may be given to an employee’s family and two examples of why employees should be treated equally in terms of pay. I have summarised the main points of UK discrimination legislation, and how this might affect the approach to temporary employees and how effective organisational policies can contribute and affect the psychological contract. I have put together a brief overview on the differences between fair and unfair dismissals the importance of holding exit interview with employees who are leaving the organisation and the process that should be taken if you make employees redundant.
An organisation may use a SWOT analysis tool to help them identify the internal and external factors that may cause damage to a project or the organisation. For example strengths and weaknesses are internal factors and opportunities and threats are external factors that will cause damage outside of the organisation.
Two Internal factors
Communication in the organisation is a very important internal factor to be a successful organisation you must have the full support of management and full engagement of employees the organisation should have a clear, accurate and structured way of communicating to everyone in the work place. If the organisation keeps the communication levels upto date the employees will feel valued and buy into the organisation and this will lead to employees developing in their roles. The outcome of this will have a positive culture impact on productivity as employees will trust the organisation and will be happy to return to work every day and buy into the mission statement and they will all see and feel part of the bigger picture.
Internal Recruitment is a great way to promote within the organisation and will save the organisation a lot of time as the employee has already been vetted and completed all the tests, background checks etc. This will also drive down the recruitment costs. Internal recruitment within the organisation will be a lot quicker and much easier to place an employee into their new role as they will adapt quickly because they will have a good understanding and knowledge of how the organisation works. This can also motivate the employees and their productivity will increase and become a lot higher as they will want to show their colleagues that going that extra mile does pay off and they will want to show their manager and the organisation they have made the right decision.
Two external factors
Environmental change has an impact on the employment relationships as you cannot control the weather. For example if you live in a certain part of the world where you have stormy seasons this will have an impact on transport and most employees rely on public transport to get to and from work. If the weather is bad then the employee will not make it in to work and therefore the organisation will not be able to service their customers and this will mean that the organisations brand will become tarnished and this will affect their profits and this may mean that they will have to make redundancies.
Legislation Employment Laws has an impact on employment relationships as there are rules in place for the national minimum wage, unfair dismissal and parental leave. An example of this is people are living longer so the retirement age policy has been raised so this means that employees can work a lot longer and the organisation will benefit from this as they will retain the knowledge and skills the employee has. The downside of this is that employees will be working a lot longer and the chance for the younger generation to start work early decreases their chances of employment and also lowers the cost of pensions this will affect the economy and overall budgets that have been set for the country.
Three different types of employment status
Terms and Conditions this is a written document provided from the employer to the employee and will provide them with a start date and will not stipulate an end date it will also cover the benefits and salary information that the organisation is offering the employee, this document must be signed by the employer and the employee and is a legally binding contract. An organisation must provide this written document by law.
Temporary contract is a written contract from an employer to an employee and has a defined end date when an employee will leave their job. The employee will still be entitled to holidays and benefits.
Part time employees must have a written contract the contract must stipulate the hours of the employment the employee has to work for a set period of time. A part time employee may have to work a certain amount of hours before they can have the have the same rights as full time employee. Part time employees must be treated the same as full time employee consist and fairly according to the (part time work act 2001).
Two reasons it is important to determine an individual’s employment status
It is important that an employer understands what responsibilities and duties the employee is providing to the organisation. The employee must have a clear understanding of their working hours, holiday leave, and salary and know what pension and benefits are available to them.
Understanding the importance of work-life balance
Work life balance affects the well-being of employees and their families it is important that the employee separates their work life from their family life. By the organisation introducing a policy and promoting work life balance this will make the organisation a great place to work and increase high productivity from the employee.
Employee holidays Under the Working Time Regulations Act 1998 it states that the organisation must provide the employee with basic rights such as 28 days paid holiday including 8 public holidays. For example a full time employee works 5 days a week they should be entitled to 28 annual paid days leave and part time employees normally work 3 days a week would receive 16.5 annual paid days leave. Rest breaks periods An Employer must provide adequate areas for rest breaks for its employees you can find out more information from the Employment Rights Act 1996 and enough breaks so that the employee is not at risk of a slip, trip or fall in the workplace due to being overworked with no breaks as this will cause a health and safety issue and affect their work. Employees do have a duty to take care if their own H&S but by law under the Health and Safety at Work etc Act 1974 (HSWA) The Employee has a duty to protect all is employees from accidents happening in the workplace ad make it a safe environment for its employees to work in.
Employees have the right to a 20 minute rest break if they work more than 6 hours a day. Depending on the employees contract the employer has drawn up they may be entitled to more or different breaks and the employer does not have to pay them for their rest breaks and the employer can say when you take your rest break.
Night workers this is anyone who regularly works 3 hours during the night which is classed at 11pm to 6am. They should not work more than 8 hours for each 24 hours period this legislation was brought in by the Working Time Regulations Act 1998. Employees who work in the day can also become night time workers this must be agreed in writing. The employer must offer a free health assessment to the individual before they start their night time employment and they should have regular health assessments.
Two examples of Legal support to an employee’s family member
Dependents leave all employees have the right to dependants leave to deal with an emergency. This is usually taken by an employee if they have a family emergency that involves their spouse, children, parents or if they are caring and looking after friends. There is no set leave limit on how much time can be taken an employee must only take a reasonable amount of time off to sort out the emergency. The employer may request a meeting to speak to you if they think this time off is affecting you work and may only pay you for the time you took off to look after a dependant your employer does not have to pay you. An employee should check their contract or the organisations staff handbook to see if they are eligible to be paid for dependants leave.
Paternity leave to receive paternity leave from your employer the employee must be the biological father or married to partner/civil partner of the child’s mother and have 26 weeks continuous employment. The employee must complete a SC3 form at least 15 weeks before the baby is due and submit this to their employer no later than 28 days before the child is born. The employee can take upto 1 or 2 weeks paid paternity leave this must be taken within 56 days of the child’s birth. The employee can take additional leave if the mother transfers up to 4 weeks ordinary maternity leave and 26 weeks additional maternity leave to the father. The employee has the right to return back to their current job they we employed to do or a role equivalent with protected rights to their benefits and salary.
Two examples why employees should be treated equally in terms of pay
Equality Act 2010 replaced the sex discrimination act and other legislations and legally protects employees from discrimination in the workplace. The Equality Act 2010 is easier to understand and it strengthens protection in some situations. The Equality Act 2010 has nine protected different characteristics in relation to discrimination legislation these are: Age, Disability, Gender reassignment, Race, Religion of belief, Sex, Sexual Orientation, Marriage and civil partnerships, pregnancy and maternity.
Staff Morale Men and Women should be treated equally and fairly in relation to their pay and benefits. When paid fairly they will feel valued, motivated and will stay loyal to the organisation this will lead to greater productivity and maximise company growth. By paying men and women equally this will also reduce the number of tribunal claims being brought against the organisation. If you did not treat an employee fairly this would decrease morale and this would mean that productivity would be at an all-time low and would result in a high employee turnover and the organisation not being profitable.
An organisation should not show favourism towards one employee over another if they did that this would cause the employee to resent the organisation and would be seen as discriminating
The main points if UK discrimination and how this will affect the approach to temporary workers
Direct Discrimination example if a man is doing the same job as a woman in the same organisation they should both be paid the same. If the man has more qualifications than the women the employer will pay him more due to this and he may be favoured first for a promotion.
Indirect Discrimination example if a job specification states the height of a man or women this would be indirectly discriminatory and unlawful unless this is objectively justified. Since men tend to be taller than women this would be discriminating indirectly against women so care should be taken when choosing your selection criteria. An example of this is in this instance would be if there were safety implications to being below the minimum height.
Victimisation if an employee feels they are being “picked on” and is treated badly this is victimisation. Victimisation can be solved informally by the employer by them talking and negotiating with the employee, if the employee is still not happy after talks and negotiating they have the rights to raise a written grievance to HR and if they do not agree with the outcome they are entitled to make a claim to the employment tribunal. This is covered by the Equality Act 2010.
Harassment if an employer or employee violates an individual’s dignity or creates an uncomfortable atmosphere and is deemed degrading or humiliating them by gossiping to other colleagues this is classed as humiliation and other colleagues can complain about harassment even if this bad behaviour is not inflicted on them. The organisation is responsible for all its employees behaviours. This is covered by the Equality Act 2010.
How organisational policies can contribute to and affect the Psychological Contract
Psychological contract is a set of unwritten expectations or promises that are agreed between the parties in an employment relationship. These parties include employers and employees and their work colleagues. The function of the Psychological contract is to reduce insecurities and attempts to balance and encourage effort. Organisations should work to motivate and encourage their employees and establish a strong authority from the beginning of the employee’s career. You can change Psychological contracts based on the organisation and the employee’s needs for this change to happen the two parties must accept and stick to these changes that they have agreed on and these changes should be documented. Please see example table below how Employment vs Psychological contracts.
Employment vs Psychological Contracts
Legally binding No legal Status
Doesn’t tell much about what people actually do at work Tells is most things about what people actually do at work
May exert only a small influence behaviour Exerts large influence on behaviour, feelings and attitude
Difference between fair and unfair dismissals
Fair Dismissal is only considered fair when the employer has valid reasons and is given a fair reason. Please see below 5 fair dismissal reasons.
Redundancy or Retirement
Other substantial reason
The employer has to show they have acted reasonably and that they have followed a fair procedure and that they have acted reasonably to reaching the decision to dismiss. An organisation should consult help from the ACAS Code of Practice on Disciplinary and Grievances Procedures employers can use these procedures to help them be consistent and fairly in their decision.
Unfair Dismissal if the employee acts fair this is still unfair dismissal if the employee considers it unreasonable or they think it was unfair. Please see below 5 unfair dismissal reasons.
Pregnancy or childbirth reasons
Joined a trade union
Discriminated regard to protected characteristics
Asked for Flexible working
Need time off for jury service
If the employment tribunal finds the dismissal is unfair they will ask the organisation to reinstate the employee and the employer does not have to reinstate the employee back to the same job. Depending on the employees age and weekly pay and length of service the organisation will also be asked to compensate the employee for the time it has taken for them to be reinstated.
The importance and benefits of holding exit interviews
Exit interviews – an exit interview should be conducted in a face to face meeting, anonymously or the employer may send out a form for the employee to complete when they have left the organisation. All feedback from the interview whether positive or negative will help the organisation make some beneficial changes. It is important to hold an exit interview as this is a great way for the employer to find out why the employee is leaving the organisation. The organisation will get very valuable and honest data out of the exit interview and use the results to reduce a costly turnover and this could help them to improve or increase employee performance, loyalty and will increase productivity.
Process of redundancy
Managing redundancy is one of the most traumatic experiences for an employee this can affect the employ badly that is why the employer needs to plan and communicate effectively and be very support and sensitive to the employee.
Redundancy happens for a reason one of the main reasons for this is the organisation may be restructuring and has too many employees and needs to look at reducing the total number of employees. For the redundancy to go smoothly it is important that HR and management are involved from the beginning and that they communicate with each other to put a plan into action. The first stage of the redundancy is to look at the employees or departments that this is going to effect and firstly look at if you can make natural wastage, recruitment freezes, reduce pay costs and look at promoting flexible working and voluntary redundancies offering willing voluntary redundancies. The longer serving employees may volunteer for this which will have cost and knowledge implications for the organisation.
WWW.ACAS.ORG.UKWWW.CIPD.CO.UKTHe Psychological contract (Internet)