IMPACT OF FACTORS OF EMPLOYMENT LAW ON EMPLOYMENT RELATIONSHIP The employment law has a highly considerable impact on the relationship of employee and employer. The organizations that have a focus on long term strategic formulation of business give a lot of attention on the employees’ retention for a long term…
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INTERNAL FACTORS 1- DISCIPLINE AND GRIEVANCES Discipline and grievances are the guidelines that are incorporated in the company’s policy and have a great significance in shaping the behavior of employees in the company. These guidelines are the rules that teach the individual about the company’s culture or way of conducting operations. Policies design the structure and that structure shapes the behavior of individuals in the company. (CIPD, 2013a). The law facilitates the resolution of the grievances and maintenance of the discipline conducts. For example, Employment Relations Act provides the opportunity for the resolution of the personal grievances and other options are also present by law for dealing with issues. Importantly, for maintaining effective relationship since the start of the employment relationship everyone the organization is required to behave in good faith. Additionally, simple measures of developing contract and informing rights along with responsibilities etc save the ER from being affected by grievances and result in maintenance of the discipline (MBIE, 2013). 2- EQUAL PAY Equal pay should be given to both men and women for the same job. None of the employer is allowed make biasness in giving equal salary or wages to men and women. Another perspective to analyze the injustice in equal pay is the comparison of pay with the market wage rate. If the company is paying low wage rate then it will negatively affect the employment relationship. (CIPD, 2013d). The law mandates employers to develop their pay structures in accordance to the Equal Pay Act. For the effective implementation and adoption Code of Practice and Equality Human Rights Commission (EHRC) is also available. Such facilitation by law results in the bridging of gap between the employees and employee on wage bargaining as things are determined by law and not by the personal consideration of employers (CIPD, 2014a). EXTERNAL FACTORS LAW Policy and law on the state level is one of the most important factors that drive the labor market and human resources management at the organizations. State laws are incrementally concerned for taking up measures that in turn contribute in the national exchequer. On the other hand, the state laws are also required to ensure the societal balance. These factors and their impact are also reflected in the laws regulating the labor market. Every year various developments in the laws are made in order to achieve the right balance between the country, exchequer and the employees and employers. All these also impact the employee relationship as the any burden of tax or any other contribution that state requires from the organizations results in squeezing the benefit that would have otherwise been used to expand the employee benefit. For example, Government’s Employment Law Review for allow greater flexibility in the labor market (CIPD, 2014b).Increasing flexibility for the labor market will contribute effectiveness for the two parties as both will be able to contribute their best with comfort working zone. ECONOMIC CONDITIONS Economic conditions have a significant impact on the relationship of employer and employee. If the economy is moving towards growth then the organization would possibly follow the same trend and it economy goes downwards then the organizations would possibly go with the economic trend. In affect from such economic factor
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