Part 1: Impact of Employment Law at the start of the Employment Relationship
Internal and External Factors Impacting on Employment Relationship
In any organisation, it is vital to ensure that employment relationship is perfect between the employees and employers to gain high workforce productivity and satisfaction. Importantly, the relationship influences the level in which the employees work to achieve organizational goals and objectives.
Internal factors
Organizational culture: According to CIPD (2018a) this identifies how organisation operates to drive its employer brand, assisting in attracting and retaining talented individuals. In this case, company culture determines many things not only how the employers relate with employees but also how an employee is treated. For instance, an organisation where its culture focuses on punishment over reward would create an environment of fear, low morale and motivation. A culture embracing unique attributes and making an emphasis on rewards would have high-level relations between the employer and employees.
Communication: As noted by CIPD (2019), effective internal communication is critical in trust development within an organisation and has significant implications on employee engagement, culture, and productivity. Having effective communication in workplace ensures that employees are informed on performance expectations and keeping them informed on any change on policy or procedure directly affecting them. To have successful employment relations, communication needs support, clear strategy and evaluation.
External Factors
Industrial laws and regulations: At the start, the government sets policies and guidelines governing different sectors that need to be taken into account. At the outset, the employment relationship is influenced by observation of the regulations which is an employee obligation (CIPD, 2019b). When joining a new organisation, an employee must consider aspects such as safety, rights, and rewards, which also include overtime work. An organisation that does not observe these regulations ends up facing a weak relationship directly affecting productivity.
Bargaining Power: This is the extent to which employees can negotiate on the working environment and payments (CIPD, 2017b). Bargaining power is enhanced by unions of workers, which organisations need to acknowledge and negotiate within an event there are appropriate industrial relationships. Any oppression of the unions and bargaining power of employees is identified as influencing poor relationships.
Types of Employment Status
As pointed out in CIPD (2017c), the employment status is usually determined by the period of working and any gain on the terms of work. The most common statuses include casual, part-time or full-time.
Employees– According to Chalikias et al. (2014), employees are hired or recruited for particular roles and a specific period. This group includes casual, part-time, and full-time employees. Further, an employee is identified by employment law but with different status for tax purposes. Hence, employers need to work out each worker’s status in employment law and tax law.
Workers– Also, as CIPD (2017d) noted, employees are workers. The difference is that employees have extra employment rights and responsibilities that do not apply to workers’ status. A worker operates on a contract or other arrangement of working on a particular task or to deliver specific services individually for a particular reward. The reward can be money or a benefit in kind for instance future work contract promise. They must turn up for work even when they are unwilling.
Self–Employed– This is a group that works for themselves (CIPD, 2018b). An individual can be employed and independent at the same time. A self-employed run their business for themselves, assuming a role of success and failure, customer handling and decision making on how, where, and when to do particular tasks. Work must be completed in their own time with charges being at fixed prices for work.
Shareholders: A shareholder is an individual operating under set employment contracts with UK employment Act stipulating that they hold 2000 pounds worth of shares in Employers Company or their parent company. They also have an agreement of having some of their shares to other people. To be given shareholder status, the employers must strictly stipulate different rules. It is nevertheless not a must for employees to change employment contract to become a shareholder in an event they are not interested in going through the process.
Importance of Determining Employment Status
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