Activity One In this report you will see a brief summary and examples for describing at least two examples of both internal and external factors that impact on the employment relationship
In this report you will see a brief summary and examples for describing at least two examples of both internal and external factors that impact on the employment relationship, the different types of employment status that exist so that the employer is aware of them of them, provide at least two examples which will be identified and analyse for the employer and why it is important to determine the employment status.
Two Internal Factors that impact on the employment relationship
Company Culture – In every organisation it is very important to have a good company culture. The organisational culture can have a massive impact on the employment relationship. This show how employees are treated within the work place, if the company put their employees are under pressure without any rewards or notice then they tend to have a low performance. If the company with better conditions offer rewards, the employees tend to have a higher performance in work and feel more valued and appreciated within the work place.
Policies and Procedures – Policies and procedures are a very important internal factor as every employee has the right to have access to these for help and guidance for the everyday work life. It is important that every employee has access to these as for example if an employee has a grievance against another employee they can refer to the policy and procedure and know the processes to follow with the guidance of the HR Team.
Two External Factors that impact on the employment relationship
Economy – One of the biggest external impacts is the shape of the economy. This has a massive effect on the talent pool of employees as people do not want to leave their current positons. Most companies now are preparing and gaining more knowledge on what is happening around the world and making sure they have the extra funding for this.
Technology – When organisations bring in new technology this does run the risk of companies downsizing and looking at ways to save on money. Where technology is a positive change to a company and could keep them up to date with other current businesses, it could also have a negative effect on members of staff as this could also cause redundancies.
Three different types of employment status
A brief explanation of three different types of employment status’s and a reason why it is important to explain the different types to the employee:
Worker – A worker is someone who has a contract which doesn’t have to be written it can be verbal. They can work for benefit in kinds or promise of future work. They are also protected so they receive National Minimum wage, protection against discrimination and being treated the same as if they were part time.
Self-Employment – A self-employed person work for themselves and not an employer. As a self-employed worker they will not be covered by most of the employment legislation and will also have to be responsible to make their own National Insurance contributions. They are also able to choose their own hours, the length of time they have to complete the contract and which contracts they take on.
Employee – An employee is the most common status and applies to most employees. An employee has a lot more employment rights such as Statutory Sick Pay, Maternity, Paternity, and Protection against unfair dismal and Statutory Redundancy Pay. Employees tend to have to work their contracted hours and the business deducts their National Insurance contributions out of their wages.
Understanding the importance of detriment an individual’s employment status
It is very important that both the employer and employee understand the importance of their employment status so they know what their rights they are entitled to and their responsibilities are. It needs to be made clear if you are a worker, employee or self-employed etc. so they understand from the start as this could end up in a dispute at an employment tribunal. Both the employer and employee should clearly understand their benefits that are available to them, their working hours, holiday entitlement and any other information that comes with the individual employment status.
In this part of the report it is going to explain and have some examples of the importance of work – life balance within employment and how its influenced by legislation, two examples of the legal support that may be given to employees as a family member, why employees should be treated equally in terms of pay, summarise some of the main points in the UK discrimination legislation and also going to explain how effective organisation policies can contribute to affect the psychological contract.
The importance of a work – life balance
It is important that every employee has and understand the effects a work life balance effects themselves, their employees and the families. The work life balance is achievable when an individual has a balanced life both inside and outside of work. When employers introduce and promote the work life balance into everyday work life the employees have a more positive outlook on the company and this will increase productivity, employees will promote a positive reputation. The employer will also see the staff produce work to high standards and motivate them. Under The Working Time Regulations 1998 it states that employees should provide:
Workers cannot work more than 48 hours per working week on average
Night workers are not to work more than 8 hours in in 24
A rest period of 11 consecutive rests in 24 hours
A minimum of one day off per week
A rest of 20 minutes for every 6 hours they have worked
28 days holiday which is paid for full time employees and part time employees world receive this on a pro rata basis.
Employee Holidays – When an employee starts work they will be entitled to holiday pay and this should be explained in their contracts of employment. Most workers are either full time or part time and they are entitled to:
Full time employees who work a 5 day week receive 28 days annual leave this is worked out at 5.6 weeks per year.
Part Time employees entitled to again the 5.6 weeks of paid holiday but this will not amount to the 28 days as they work fewer hours than full time members of staff. Please use the link provided this also has the part time calculator on https://www.gov.uk/holiday-entitlement-rights
Rest Periods – All workers have the right to a rest period of 20 minutes during their working if they work for 6 hours or more a day. Depending on the employees contract it will state what breaks they are entitled to and if they will be paid for them. Workers have the right to 11 hours rest between working days and should also have a rest of 24 hours without any work each week and 48 hours without any work for each fortnight. All this information can be accessed on the government website.
Night Worker – A night worker normally works at least 3 hours during the night which is classed at 11pm – 6am unless this has been agreed with the employer as different hours. They shouldn’t work more than 8 hours in a 24 hours period this also includes regular overtime. The employers have to overnight works a free health assessment before they start their night shift and also on a regular basis’s. Night workers do not have to accept this.
Two examples of Legal Support to an employee’s family member
Maternity Leave – All female employees have the right to Maternity Leave and can take up to 52 weeks maternity leave, the first 26 weeks are known as “Ordinary Maternity Leave” and the remaining 26 weeks are known as “Additional Maternity Leave”. If employees do not want to take the 52 weeks they do however have to take the first 2 weeks off following the birth which is compulsory leave, this may be longer if they are based in a factory. Employees must be 39 weeks before they are able to take this unless the baby arrives earl they the Maternity Leave will start the after the birth, you will need to provide evidence of this, Birth Certificate, Signed document from the doctor or midwife with the actual date of birth etc. Employees will receive the MATB1 form which is a Maternity Certificate around the 20th week of pregnancy and this will state the date the baby is due on. All pregnant employees have the right to be protected against unfair treatment and discrimination and be entitled to reasonable time off for antenatal appointment with pay. They also have the right for up to 10 days KIT days (Keep in touch days) and these are arranged by both the employee and employer. For any further information please visit the Government website.
Parental Leave – Parental Leave is for employees to take time off work to allow them to look after their child’s welfare and make any arrangements that needs to be done. To qualify for this you have to have completed one year continuous service whey you work and you must be the parent and be named on the birth certificate or adoption certificate. All children must be under the age of 18. Employees are entitled of a maximum of 18 weeks and take no more than four weeks can be taken in one year and this applies separately to each child (this is always based upon your working pattern). The process for applying for this is you will need to make the request in writing giving at least 21 days’ notice before the start date.
Two examples of why employees should be treated equally in terms of pay
Every organsation has to promote and ensure that the company carry out the correct process of equal pay. This allows us to promote to our employees to fair treatment across the board. If employees found out that any men were being paid more than women it would make members of staff feel undervalued and have a low morale across the organisation. If everyone was paid the same or paid according to the qualifications or experience then this would boast both their value and the productivity to the company. The Equality Act 2010 covers this equal pay. See below two examples why employees should be treated equally in terms of pay:
Staff Morale – If staff is treated fairly in relation to pay then this should promote staff feeling more motivated and help them to work harder and go the extra mile for the company. If staff is feeling that they haven’t been treated fairly then you will see this in their performance, their promotion of the reputation of the company and staff turnover.
Equality Act 2010 – The Equality Act 2010 came into place on 1October 2010. This merged legislations together and the nine main ones are The Equal Pay Act 1970, The Sex Discrimination Act 1975, The Race Relations Act 1976, The Disability Discrimination Act 1995, the Employment Equality (Religion or Belief) Regulations 2003, the Employment Equality (Sexual Orientation) Regulations 2003, the Employment Equality (Age) Regulations 2006, the Equality Act 2006, Part 2, the Equality Act (Sexual Orientation) Regulations 2007. This Act not only covers equal pay it also covers holiday entitlement, pay and rewards schemes etc. The Equality act is there to ensure men and women who are doing the same and equal work receive the same pay.
Main points of UK discrimination legislation and how this might affect the approach to temporary workers
Direct Discrimination – Direct discrimination is where an employer directly discriminates on their age, sex, religion or belief, sexual orientation, disability. For example when hiring an accountant the company could hire the person on their race over hiring someone with less qualifications and suitability for the position.
Indirect Discrimination – Indirect discrimination is where there is a process or policy and this applies to everyone in exactly the same way but this can have a worse effect on other people. For example a women who has all the correct qualifications and experience but the role requires her to travel, she may find this difficult as she has same children and finding childcare for a few days at a time may be difficult.
Harassment – Harassment is when someone could be violate another person’s dignity or make them feel intimidated, hostile or try and humiliate them by spreading rumours or picking on a practical person. An example of this is if you receiving racist comments and you have brought this to your manager’s attention but nothing is being done. You could take this claim higher as you have proved that you have raised this and you manager is doing nothing to protect you. This is also covered by the Equality Act.
Victimisation – Victimisation is where an employee feels they are picked on for making a complaint or supporting another colleague who has made a complaint. An example of this is if an employee has been refused a promotion because they have been linked or supported someone with a grievance or given evidence at a tribunal. This is also covered by the Equinity Act.
How organisational policies contribute to and affect the psychological contract
The psychological contract is an unwritten set of expectations or promises that has been exchanged between the parties in an employment relationship. This could also be promises of promotion, extra work or any for off salary increases. Both the employee and the manager should have they expectations from each other so this can run smoothly. Psychological contracts can change overtime and this is based on the organisation and employee’s needs, for this to happen both the employee and employer must agree to abide to these changes and if they are large changes or job increases then these should be documented.
In this part of the report it is going to be explained the differences between fair and unfair dismissals and examples for fair dismissals, the benefits of holding exit interviews when employees leave the organisation and the process for making employees redundant.
Differences between fair and unfair dismissals
Fair Dismissal – Fair dismissals are only acceptable when the following reasons apply:
Conduct – Any minor issues such as timekeeping etc.
Capability – Poor performance or ill health
Redundancy – If the company is closing down, change in location etc.
Legal reasons – If employees break the law
Some other substantial reason – Employee doesn’t agree to changes in terms and conditions etc.
When you are conducting a fair dismissal you must have a fair reason for this and it must have had a proper investigation, follow all the procedures, explain to the employee why this is happening and give them a chance to appeal this. All employees also have the right to be accompanied by union representative or a colleague. An example of this is where an employee is being made redundant you would need to prove that the work is no longer required at that location or the work is being absorbed into another team etc.
Unfair Dismissal – Unfair dismissal is if the employer doesn’t have a good reason to dismiss you or they haven’t followed the company’s dismissal process. All employees have the right to be treated fairly and be shown clear instructions as to why this is happening. If the employee does claim that they have an unfair dismissed then they can challenge the company to prove that they have been dismissed for one of the following reasons:
Are pregnant or on maternity leave
Have reported your employer for whistleblowing
Have asked in for your legal rights to work – National Minimum Wage
If the employee does make this claim then it would need to be exploded the process that the company followed and checked that it matched all guidance of the policies and produces in place and any advice that was took through ACAS. All this information will be used if the employee takes this case through to a tribunal.
If is important for a company to follow the correct and follow all procedures as this could keep the company’s reputation positive.
The exit interview is a very good opportunity to find out why employees are leaving the organisation and what we can do to keep employees so that the company doesn’t have a high turnover in staff. This could produce a good insight as to what the factors as to what the staff like and dislike over the positions. Some companies like to do a survey monkey asking them to complete the questionnaire and then hold an exit interview with them to discuss any negative comments or see if there is anything that could be put into place to keep the employee. This could also be helpful in senior management meeting to take the primary reason into consideration and look at why staffs are leaving the organisation.
The process to follow when making redundancies
Redundancy can happen in any business and the main reason for this is if the company are no longer trading, company may restructure the departments or even the locations. Once you have identified that one of the above is going to happen you should contact HR and any managers in which their teams could be at risk of redundancy. The managers and HR will then need to identify which members of staff this may effect and make sure that they meet with all member of staff involved and make sure they are aware of the reasons for this happening and what suggestions or any other alternative options are available to staff. It is essential that the company look at the scale of redundancies as this requires different legal requirements. If there are less than 20 people that are being made redundant at once then they should be made redundant within a period of 90 days or less. The next stage of the process is to arrange a consultation meeting with all members of staff that have been affected as a group and then followed by induvial meetings. At the induvial meeting employees will need to be informed that they can be joined by a union representative or a colleague. When discussing the redundancy process you do have to be mindful of how staff are feeling inform them if there are any reemployment opportunities available or anyone who wishes to take voluntary redundancy. All staff will need to be informed of any redundancy pay they will receive and inform them of when their last day of employment will be. Everything needs to be documented with clear instructions so if any member of staff appeals their decisions we have clear guidance to why we have come to this decision.
This report has been put together so there is clear instructions are available to all members of staff when it comes understanding the factors that need to be impacted on internal and external employment relationships and the different types of employments status for all employees. So that everyone has an understanding of the work life balance and any legislation with employees. It has also been summarised the importance of when discussing and addressing redundancies. This is available for both employer and employees.