Essay on Supporting Good Practice in Managing Employee Relations

2871 Words Jun 10th, 2012 12 Pages
Employment relationship – defn. “the relationship that exists between employers and employees in the workplace”

When an employee starts a new company there may be many internal and external factors that impact on the employment relationship. One external factor is the state of the economy, in recent years the economy has experienced a recession. This has impacted businesses in many ways; e.g. redundancies - less capital means companies can no longer afford to keep all staff.

A second external factor is the social impact. For example the age of retirement has increased which has resulted in an older retained workforce - the retention of specialised skills and knowledge of the company will be a positive impact on the employment
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The purpose of the Equal Pay Act 1970 is to eliminate discrimination between men and women in terms of pay. One reason that justifies treating employees fairly in relation to pay is that lower earnings make it harder for women to take care of their families.
A report from the Institute for Women’s Policy Research found that if women were paid fairly, single women’s income would rise by 13.4%, single mothers would earn 17% more.
“This would greatly increase the ability of women from all economic backgrounds to provide basic support to their families” - (Smith 2009).
If salaries are particularly lower for women this would reflect in their benefits package, and these benefits should be based on the annual salary, and salaries should be in sync to the levels which are assigned to the job. This ensures salaries are fair for the job being performed, regardless of gender, race, or age, to ensure there is no discrimination among employees.
Furthermore, the psychological contract can have a significant impact on the organisation, if employees feel they are not treated fairly in relation to pay. If an employee felt they were not being paid what they deemed to be fair, the result is decreased morale, lack of customer service, and ultimately departure from the organisation.
Employees are protected by law by The Equality Act. It is there to strengthen protection,

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