Contract of Employment in the UK - Essay Example

Discuss the nature and the ways the terms and conditions contained in a Contract of Employment can come into existence in the United Kingdom Discuss the nature and the ways the terms and conditions contained in a Contract of Employment can come into existence in the United Kingdom Titus Rock Manickam Order No. 272580 26 February 2009 Table of Contents Introduction.3 Differences between terms and conditions.4 Employer-employee problems4 How terms and conditions can be created..5 Disciplinary Measures6 Serious Problems7 Not So Serious Problems7 Ordinary Problems..8 Conclusion..8 References..10 Discuss the nature and the ways the terms and conditions contained in a Contract of Employment can come into existence in the United Kingdom Introduction The relationship between management and labour is defined by the terms and conditions established in the contract between them. It is the management that makes the contract goes on to have the employees sign on the dotted lines. Broadly, terms and conditions establish the bond between management and labour. They have come into being from the time assembly-line industries began to take shape and spread across the globe. The Factory Acts of 1802 and 1833 and the Master and Servant Act of 1832 established the principles of labour relations in the United Kingdom. Britain was a super power then and had flourishing business in agriculture and the cotton industry. The shift in preference for employment from agriculture to the industries began in 1851 in the Midland and North Britain (United Kingdom). The Factory Acts and Master and Servant Act continued almost as they were until the 1960s. The intervening world wars in the first half of the 20th century put paid to any thought about advancement in the labour cause. The concept of modern day Employment Law Act began with the Equal Pay Act of 1970. It came into effect in 1972. The most prominent segment of this act was that it strengthened the efforts to bring about equality for women in the workplace (The Equal Pay Act 1970 (Amendment) Regulation 2003). Since1997 and the election of the Labour Government there have been many changes in the UK employment law. These include enhanced maternity and paternity rights, the introduction of a National Minimum Wage and the Working Time Directive which covers working time, rest breaks and the right to paid annual leave. Likewise, discrimination law has been tightened with protection from discrimination now available on the grounds of age, religion or belief and sexual orientation as well as gender, race and disability (Industrial relations under new Labour: an update). Differences between terms and conditions Today terms and conditions governing employer-employee relations are not as open as they ought to be and they are complex. They are lop-sided, not quite reasonable, geared to human resource development but simultaneously businesslike. The present day terms and conditions swear by natural justice, however there are disciplinary procedures, provides little scope for protection from unfair treatment, prefer counseling, and sets clear performance standards. Now terms and conditions are two different terminologies. The dictionary describes terms as "words used to define certain concept" and condition as "a stipulation" (Illustrated Oxford Dictionary). In the issue of labour, terms are concepts that describe the working relation the company has with the employee and conditions are stipulations that describe the reward or penalty for duty performed or misdemeanors committed. The United Kingdom has in place employment legislations that addresses human resources development issues and also makes it difficult for employers to carry out unfair dismissals. These legislations succinctly cover almost all nature of employment and human resource problems. However, employers hold the trump cards. Employer-employee problems Problems in employer-employee relations happen when management is primarily insensitive to human foibles and hurriedly applies terms and conditions of the contract of employment without seeking to solve the problem by non-threatening means first. The employer-employee relationship is the most enigmatic of all relations. Basically, this relationship is one of mutual benefit and one that promotes corporate goals. It is when this aspect of promoting corporate goals is threatened due to an employee's attitude or behavior that the issue of labour law comes into the picture. The employer-employee relationship is enigmatic because of the inherent conditions and consequences that govern the relationship. This is not a simple relationship as that of one family member with another or the one between friends. It goes a step further and accounts for the individual's traits and characteristics. It seeks to promote the good qualities in the individual that promote the company's aims and objectives and deal with those qualities that hinder or break down the smooth functioning of the company's procedures and regulations. How terms and conditions can be created If there is an employee whose actions and/or attitudes are creating frictions in the work place, it is the company's prerogative to stop this person's misbehavior. At times, the individual may be subconsciously indulging in activities or attitudes that create problems in the work place. The company must stop this person from carrying on with such behavior. Whether the individual is deliberately causing nuisance or is acting out of ignorance, the company has the right to initiate disciplinary measures. However, what are disciplinary measures The approach to discipline is the major issue while dealing with employees who create problems. There are basically two approaches to discipline. The first one is hard and the employer plays according to the rule book. The second one may also be hard. However, in the second instance, the management prefers to give the erring employee a second chance. The management may point out the employee's error but allows him room for rectification. Terms and conditions can be created from time to time according to the scope and nature of the changes required. They can also be changed to keep in tune with new legislations on labour. Disciplinary Measures Discipline and grievance are the two factors that govern employer-employee relationships. However, the task of disciplining an employee may not always be easy. There are laws that protect the employee as much as there are laws that indict him. The line manager has to act with responsibility and restraint while dealing with errant employees. There are rules and procedures that apply at each step of the action being taken. If the line manager does not exercise care, he is likely to not only put himself in trouble but may even drag the company into needless legal confrontation and waste of precious time. There are different types of problems. There are serious problems and there are problems that are not so serious. Each problem must be addressed in proportion to its seriousness. The management must handle each problem pragmatically and magnanimously. Undue and emotive haste only precipitate the problem to become worse. On the other hand, a discerning management understands that the steps to disciplining employees are taken one at a time, firmly and within the legislative framework. Dismissals are resorted to in rare cases. Serious Problems The management must be very clear in the contract of employment what constitutes serious problems. Theft, fraud, alcoholism, gaining unlawful entry into another's computer data, assault, and other actions of similar nature fall into the serious problems category. While on the subject, it is pertinent to ask the question if taking sick leave on fake medical ground could be bracketed in the serious problem category. Yes, it could be done if the problem is so persistent that it has to be brought into the serious problem category (Employee performance and behavior). Not So Serious Problems The terms and conditions contained in contract of employment have to do with the employees' obligation to work in the duties assigned. It states nature and scope of actions that follow non-compliance and/or indiscipline. It also states the conditions of remuneration and rewards. Employment laws in the United Kingdom are among the best in Europe and the rest of the world. Until the 1970s, employers enjoyed unlimited powers to discipline and dismiss employees. The Industrial Relations Act 1971 changed this scenario. This Act gave individual employees the right to complain to an industrial tribunal if they had been unfairly dismissed. Hence, the question of insubordination may be serious problem to a line manager. However, it may not be so serious to the human resource manager who after making some investigation finds that the problem can be sorted out with some counseling and follow up action. Problems that are not so serious are the ones that could be handled with discretion and care by the management. They may have been intentionally or unintentionally committed such as insubordination, not coming to work on time, absenteeism, quarrelsome nature, etc. According to survey, majority of these cases can be solved with counseling and follow up action (Employee performance and behavior). Ordinary Problems It is not possible to work in a problem-free environment. Problems relating to employer-employee situations will be around as long as the corporation culture lasts. Problems to do with employment affairs, minimum wages, leave, and other benefits will present themselves from time to time. Employees with domestic problems are more likely to show up at the work place with plummeting efficiency and show of tantrum. Good communications ensure maximum protection against these problems. The management that has open accessibility and shows sensitivity to the employees' genuine domestic or personal problems does well by winning employees' confidence (Labour Relations Agency). However, there are black sheep. It is left to the management to deal with these according to the problem that they create. Counseling and medication help to some extent. It is all right to treat these with kid gloves so long as the problems they create do not come in the way of company's goals. Conclusion The terms and conditions in the contract of employment are fine prints that prompt the employees to do their best or warn them of action for misdeeds. The employment legislation has come a long way of providing the employer and employee enough ground to seek rapprochement in case of any dispute. Problems of serious nature such as theft and fraud still attract dismissal and even prosecution. Nonetheless, by and large, the entire issue of employer-employee relationship is now more open to fairness and natural justice than ever before. References: Employee performance and behaviour, http://www.cipd.co.uk/NR/rdonlyres/6265AA83-97A3-4DE0-A8F3-948CDE697AE9/0/1843980630SC.pdf Illustrated Oxford Dictionary, Dorling Kindersley Limited and Oxford University Press, Oxford, ISBN 1-4053-2029-X Industrial relations under new Labour: an update, http://www.eurofound.europa.eu/eiro/1998/12/feature/uk9812166f.htm Labour Relations Agency, Annual Report 2007-08, http://www.hrle.gov.nl.ca/lra/publications/LRAAnnRep200708.pdf The Equal Pay Act 1970 (Amendment) Regulation 2003, http://www.opsi.gov.uk/si/si2003/20031656.htm United Kingdom, http://encarta.msn.com/encyclopedia_761553483_24/United_Kingdom.html Read More