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Introduction of Supporting Good Practice in Managing Employment Relations Assignment
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The Labor Law aims to regulate several issues, all related to the protection of the rights of a group of workers vis-à-vis employers. It includes the rules that regulate the individual work contract and the joint work contract. It specifies working hours, the worker’s right to weekly and annual paid holidays, and sets a minimum wage that may not be lowered.
About it, it includes many topics to protect workers' rights. Any company that builds its policies depends on the labor laws in the country
Employment regulations and laws are considered a factor greatly influencing the recruitment process, as organizations and institutions must abide by the labor laws set by the government, which are represented in:
Employee compensation, permitted vacations, working hours, terms of employment, health insurance, and these laws must be followed or heavy fines paid to institutions and organizations that do not care about these laws, which affects their employment.
Internal factors: Factors that affect the contractual relationship between the employee and the employer from within the organization, such as employee contracts, internal regulations, and policies in the organization.
It is the existence of appropriate disciplinary and grievance procedures in the organization. This will be that the employees will be treated fairly and equally at any point while they are doing the same job in the same work environment. Also, you will provide direction and assurance that the employees will comply fully with the internal procedures of the organization and therefore the law of the country in which the origin is operating. According to “Disciplinary and Grievance Procedures provide clear structures for dealing with difficulties that may arise as part of the employment relationship, both from the employer and employee perspective” (CIPD Knowledge Hub, 2021). The two main internal factors that affect the employment relationship are identified as employee engagement and management style. Employees who are enthusiastic can motivate themselves, but enthusiasm needs a daily boost. Trust is mainly established by the employers when they offer advancement and rewards to the employees for their excellent performance. These matters keep the employees happy, well-motivated and informed about the performance of the organization. Employee engagement also provides the employees with regular feedback about the quality of their workplace contributions. The employees who are allocated with the jobs they are excellent at and can work cooperatively with their co-workers, feel engaged and know their position in the organization. Engaged employees’ personal career goals get aligned with their company goals and their responsibility levels match their expertise levels. Management style also affects the employment relationship and if it allows matters to percolate until a crisis takes place, then it will give rise to “burnouts”. The “burned-out” employees disappear without confronting the problems. Their style of management combines blame-shifting and abrasive encounters instead of creative and brainstorming solutions. If the managers encourage the employees with respect, honest communicative, caring responses to questions, support, and concern then employment relationships become better.
Example: Employment contract: The employment contract usually comes with a handbook for the employee with all the job requirements and tasks and explains all the points that the employee must consider during the contract period, clarifying all matters for both parties. The employment contract cannot be changed without the knowledge and consent of the employee, while all job policies and tasks can be developed according to the company’s directives.
The employment contract contains several data, including: job title, job responsibilities, weekly working days and hours, work location, salary and other rights.
The Personnel Handbook contains information about performance standards, procedures, internal regulations, fringe benefits, and more.
The organization must also ensure in its job design and work environment that it does not put the employees under excessive pressure in the performance of their assigned duties. If employees work under excessive pressure, their productivity will be negatively affected and this creates a negative problem in the relationship between employees and their management.
External factors: They are the factors that affect the functional relationship between the employee and the employer from outside the organization, such as some legal legislation issued by a third party such as the government and other external governmental and legal agencies.
The two main external factors that influence the employment relationship are identified here as economic factors and lifestyle issues. An unstable and churning economy can often hamstring the business of the organization as well as the employment relationship. An unstable business economy can also thrive and deteriorate the business operation of theta organization affecting employee engagement. In order to deal with the economic factors, the organization need to work with employees’ productive lines to strengthen the customer base, this is the key to survival in a volatile business cycle. Suggestive selling can make the conversion more fruitful and allow the prime customers to purchase the service or products at a higher rate.
- The Law of State Legislation (Ministry of Human Resources in the Kingdom of Saudi Arabia), which determines the number and maximum working hours, clarifies the minimum supplies for employees, and determines the wages for some jobs such as engineers, accountants and others.
Saudi Labor Law: This factor has an effective impact on the employment relationship because it is considered as a frame inside the organization. It is protecting the rights and regulations of employees. So, the policy of the company should depend on labor law articles and if the employees find the policy not enough for them, the labor laws will provide them more details for all kinds of the situation inside the organization. For instance, in Saudi labor law, the employee should receive his salary per month and didn't postpone it to next month, if any company does that the employee has the right to complain.
- Human rights laws: give the employee additional rights such as freedom of association, freedom from discrimination, employees working under the sun in the summer and others. An employment relationship can also get affected due to their daily unhealthy lifestyle. They can get distracted and fail to remain engaged in their work if they are pulled by stress and depression which can also enhance from their workplace.
- Economic / commercial may specify the employment contract for the employee, the specific contract if the economic work environment is poor, the employment contract may be offered temporary instead of permanent, depending on the economic and commercial environment. Financial literacy, drug abuse, and lack of leisure “skill knowledge” can easily affect resilience, employees’ health and the employment relationship too. If the employees are pressurized to work more than 9 hours a day then they can feel less energized and inactive at work. In order to improve the employment relationship the organization must take the initiative to provide their staff training to discover workers with clear thinking, good decision-making skills, and stabilized mental health.
- Competitors: Every sector and organization has competitors in the market. So, the successful organization looking to prepare a positive environment for all employees. That will happen when the company keen to develop their employees by presents many of courses and if the employees get good salary and rewards they will prefer to continue to work in this environment. In positive, if the company didn’t search and do the best for their employees they will leave and join to other companies. The turnover will negatively impact on financial and productivity
What Are The Different Types of Employment Status?
There are different types of employees who work within the organization.
Thus, the organization needs to identify the types from the beginning of employment in order to be able to establish regular regulations for them.
The different types of employment situations are:
Can employees and self-employed. And that they have a contract or agreement to provide work or services in return for a wage or reward. They are entitled to basic labor rights and protection. For example, labor or drivers from contractor agencies and security guard companies can be classified as contract workers
They do not own the work and are self-employed and do not work as an employee. They do not have the rights and job obligation like other employees.. For example, freelance workers who are considered self-employed do not belong to a specific employer. But they work for themselves. Self-employed people are often known as freelancers, who work on short projects with numerous clients. Freelancers do not receive any employee benefits and generally pay their “own taxes”.
An employee is an individual who has been appointed by an employer to do a specific job. The employee is employed by the employer after the application and interview process leads to his or her selection as an employee.” (gov.uk, n.d.) He is a permanent employee and works full time. He has all rights within the company and is protected by labor law. “All employees are workers, but the employee has additional employment rights and responsibilities that do not apply to workers who are not employees.” There are also other types of employees like temporary and seasonal employees also contribute to the short and medium type projects of the organizations. Seasonal employees are mainly for a short time as per organizational needs and they help to complete the increased work demand that arises in “specific times” in a year. Temporary employees are mainly hired for short time period like 3 or 6 months. They are hired by the company to work on a specific project, and after the project are over the employees stop working.
The importance of determining employment status
The employer and management should know the different types of employment status as this will help them to give the employees their rights according to their status. According to the labor law system, just as there are different types of employees, there are therefore different contracts and different regulations for each job. Among these types are:
If the organization dismisses any of its employees without clear reasons and they violate and the dismissal becomes unfair, then they should follow the legal policy and procedures. Therefore, these policies and procedures will protect employees from unfair dismissal. Therefore, employees must know their status within the company to know their rights. “Employers must have clear individual dispute resolution procedures that are communicated to all employees. Executives and any employees involved in administering disciplinary and infractions. Employment contracts contain provisions that oblige the employer and employee to respect each other's rights and duties. One of the most important provisions contained in employment contracts is the termination clause of the legal provisions guaranteed by law to the worker by terminating his work contract before expiration date. If the employer dismisses the worker without a valid reason, it is considered unfair dismissal. The worker must be compensated for the time spent at work
End of service:
The end of service benefit is considered one of the employee's rights over the employer in the event of the termination of the contractual relationship, and it is the type of benefits that employees receive upon their resignation from the organization. On having proper knowledge of “individual employment status” like if they are seasonal employees, temporary, part time and full time employees can help to know about their National Minimum Wage. It also helps to know about the employees’ holiday pay, and protection against illegal discrimination.
End-of-service benefits or end-of-service benefits are the entitlements that the employer or facility must pay to the worker or employee for the period of his service in appreciation of his efforts. It is calculated based on the actual period he spent at work, i.e. the number of years of service, and the value varies according to the different number of years; From two to five years, ten years or more, in addition to being calculated on the basis of the last salary or wages received by that employee
An employee who has worked full time under a contract that qualifies for the end of service. It depends on the number of years they have served in the organization then it will be counted. All disputes must be dealt with in a fair and consistent manner across the organization.” (cipd.co.uk, 2020)
3/ Rights and Obligations:
Employee benefits or benefits in kind (also called fringe benefits, bonuses, or tips) various types of compensation other than wages offered to employees have benefits that differ from the organization’s employees and their status gives them rights under labor law. According to (Martin, 2016) Employees have an employment contract. They will get other benefits such as the monthly wage. Thus, employees are obligated to provide a personal service (they have to do the work you hired them to do; they cannot send with another person or ask someone else to do it) and employers are obligated to provide the work (the obligation here is reciprocal). It is much important to determine the “individual employment status”, to understand if any individual invoice other recipient of service. Employment status is important as it provides all the employees and workers with job protection and equal working rights regardless of culture, caste, creed, gender variations, and variation in socioeconomic status. It also allows knowing if the person is obliged to undertake the work that contracting party has allocate to him. The employer largely controls how employees perform their work (the employer decides what the job is and designs work procedures and systems).
The importance of work life balance:
In order to be a successful employee, you must first set his priorities at the personal and professional levels. If he wants to achieve balance in his life, which is something that many do not have, he must carefully consider all the things he does daily, and he must decide what things you cannot give up, And what are the things that can be ignored to create more time that he may need to do other more important things, for example if he is a volunteer in three non-profit organizations, choose the most important one for you, instead of keeping your mind distracted between them all.
The successful employee who can manage his life between work and personal life and does not allow one to encroach on the other and this is what we call work-life balance
- Increase productivity: . Increase productivity at work. Depending on your skill in managing time, delegating tasks and setting priorities to work in a more efficient manner, when employees reach a work-life balance that will be reflected in their performance in their organization and they will feel happy and comfortable at work
- To ensure your physical health: Sometimes employees in work environments are exposed to various psychological stresses that may lead to serious consequences for their health and exhausted employees face physical diseases such as hypertension, especially when they work in an uncomfortable environment. You have to keep exercising and eating healthy. ACAS mainly highlights that the employees and employers need to refer to Employment protection Act  to understand the conciliation, arbitration service, and advisory that the companies need to maintain in their workplace. Employees feel stressed at work when they fail to balance their professional and personal life and often experience work overload.
- Maintaining good mental health: If the employee continues to work under pressure and the large number of orders from managers and the large number of tasks for one employee this will lead to various problems, one of which is fatigue, depression, nervousness and dissatisfaction. This creates a domino effect and lowers the morale of the employees and enhances employee turnover rates. The Health and Safety at Work Act , is one of the pieces of legislation covering occupation safety and health measures in the UK and protects the employees' emotional heath, secures them from discrimination issues, and provides them with justice at their workplace. Work-life balance can enhance employees' productivity, and improve their mental and physical health. The Saudi Labor Law helps employees achieve work-life balance by protecting their rights such as: (hrsd.gov.sa, 2021)
- Working hours: The employee works eight hours a day and does not exceed 48 hours in a week, and in the month of Ramadan the hours are reduced to six hours and not more than 36 hours in a week
Rest or rest period: It is not included in working hours. The employer does not have the right to ask the worker to stay at the workplace while he is on leave.
Holiday: Workers have fixed vacation days such as Eid al-Fitr and Eid al-Adha. They have 4 paid vacations. The National Day of the Kingdom of Saudi Arabia is September 23 which is a holiday for workers. Hajj is an annual leave if the employees want to join the Hajj and they have 10 paid days during his years of service and the annual leave as it varies from one establishment to another and it is an average of 30 paid days per year
Legal Family Support in Saudi labor law:
The Saudi Ministry of Labor sets a policy for employees in the company, and these policies protect their rights. At the same time, there are some policies that consider family support. In the UK the companies have the policies of supporting all their employees and workers as well as their family members. The companies mainly follow the rules and regulations of the acts like Labour Relation Act , the Equity Act , and the Occupational and Health Safety Act  in order to protect and support the employees and their family members. Such as:
- Maternity leave: An employee is entitled to 10 weeks of maternity leave. If she works for only one year, she will receive half of her salary, but if she works for about three years, she will be entitled to full
- Marriage Leave: Employees will get 5 days of paid leave in their marriage. If any of them will take more than 5 days, they will be deducted from their annual leave. pay.
- Death of the spouse, children or parents: the employee will get 5 days of leave in the event of the death of one of his children or parents. An employee, if her husband dies, is entitled from 15 to 130 days in her debt.
- Paternity leave in Saudi Arabia: Fathers have the right to take leave if they have a new baby. Leave 3 days.
On the basis of all these norms and rules of the legal acts, the organization provide their employees with positive working environment that incorporates equality and diversity, holiday leaves, paternity and maternity leaves, marriage leave, and so on.
Two reasons why employees should be treated fairly in relation to pay:
Administrative Officer: It is a job that can be filled by both women and men
- So that no discrimination due to gender, raise, disability or believes which later will result in negatively affecting employee performance.
- It will create healthy working environment that reflect positively on the organization performance. Moreover, this will make the organization more attractive for employment.
The right to make a claim under equal pay legislation applies to employees and to anyone with a contract to carry out any work personally, as stated by (CIPD Knowledge Hub, 2021).
The professional treatment of employees is one of the most important factors that the human resources department must pay attention to, as it is directly reflected in the performance of employees. When an employee is promoted on the basis of knowledge or unfairly obtained an undue increase in wages, it affects the performance of the employees who deserve the promotion or rise. In order to make the organization work properly, all the employees must be provided with equal working opportunities, and equal pay according to their designation regardless of their gender, caste, creed, race, and culture. In the year 2021, a serious gender gap has been found in the UK. As to the data, among all the employees there was a difference of 15.4% in the average hourly income of men and women in the UK.
As per the government norms the organizations in the UK must provide equal treatment and work opportunities to both their male and female employees. This has been done by following the guidelines of the acts, Equal Pay Act of 1970 and which was further repealed by The Equality Act of 2010, which compiled all the regulations that adhered to the norms of equal treatment for both men and women. Hence, from this it can be stated that an equal pay scale and fair treatment of all the employees regardless of their caste, race, gender, language, and culture can incorporate a positive working culture and enhance the growth of the organizations’ business processes.
In recent years, we have noted that there are things that may be the most basic rewards that a worker gets, which includes motivation and moral recognition, making the worker feel a variety of distinction and a sense of enterprise. The strength of the project and the panels with the internal advantages that the enterprise brings to the worker, in addition to the basic issue that distinguishes the organization from others, and the security of the process which it gives to the worker with the help of the use of extending his settlement for a long time as well as the timely payment of his wages. (Malcolm and Fiona)
Discrimination is oppression in which human beings are subjected to unequal treatment due to actual or assigned characteristics, even though there is no justification for this behaviour. The General Equal Treatment Act defines discrimination based on ethnic origin, gender, religion or belief, disability, age or gender identity. (Barbara & Cornelia)
Discrimination can appear at different levels in daily life; They appear in social life, for example, by imposing restrictions on participation in public events, in education, in work or wages. Here the institution, for example the employer, is responsible for acting against this discrimination. At the private level, discrimination is manifested, for example, in that a person does not pay attention to another person because of several features or one of them, or excludes him from the group, or is superior to him.
Forms of racism also appear, for example, when a woman in a company is paid unequally as men for the same work done. There is absolutely no justification for this, and this is known as gender discrimination.
There are many types of discrimination: The Equality Act of 2010 mainly protects the employees of the organization from being the victim of discrimination and other unfair practices and must get enough respect from every member of the organization to sustain a healthy workforce ambience. There are different kinds of discrimination within the workplace, as stated below.
Occurs while the human deals with much less favorably due to their sex, race or different blanketed traits as set out with inside the diverse portions of law that apply. Direct discrimination deals with a practice that leads to targeting certain employees based on their characteristics traits.
Indirect discrimination mainly arise if you have a condition, rule, coverage or maybe a exercise to your employer that applies to everybody however especially hazards those who percentage a covered characteristic. Indirect discrimination deals with the practice that in general all the employees are treated the same but certain groups of people are put at a disadvantage as they belong to a category of protected characteristics.
“Intimidating, hostile, degrading, humiliating or offensive surroundings for that individual”
Is “undesirable behaviour associated with a applicable covered characteristic, which has the reason or impact of violating an individual's dignity or developing an
Takes place while a worker is handled badly due to the fact they have got made or supported a criticism or raised a complaint beneath Neath the Equality Act; or due to the fact they're suspected of doing so. Victimisation is an unfair practice that renders an individual vulnerable in the workplace upon an individual to support a claim of another. This process of victimisation affects the ambience of the workforce as well as the employee at work. A worker isn't blanketed from victimization in the event that they have maliciously made or supported an unfaithful criticism.
An unauthorized reciprocal agreement, or set of promises, about what we will provide in the course of our work and what we expect from the employer in return.
The psychological contract differs from the legal employment contract between the employee and the company. It is an implicit contract that specifies what each party is expected to give and receive from the other. Also, the new employee has made some assumptions about their relationships with each other in the workplace. We cannot ignore this type of contract as it affects their performance and behavior in the organization. According to (cipd.co.uk, 2020) “The psychological contract is very different from the work contract or the legal contract between the employee and the company in which he works. The psychological contract can be defined as an implicit contract between the employee and the partnership that specifies what each party is expected to provide and receive from the other party. The employee expects what he will receive from the company in terms of salary. And job security and security, in addition to opportunities for promotion and personal growth, while the company, in turn, expects several things to be provided by the employee, such as the ability to perform job tasks and other similar work assigned to him that requires a degree of knowledge and technical skills, his ability to solve problems, develop work and improve performance,
AC 3.1: Distinguish between fair and unfair dismissal
Unfair and fair dismissals as practiced with the companies are mainly associated with the factors that have a collective influence on the working process of the companies. In case of discrimination based on age, certain criteria ascertain the legal age of retirement based on grounds of health-related issues and safety regulations.
It is the dismissal of the employee in a regular manner and it is ignorant of an order to conduct the behavior of the worker, as the employer, if they see good and reasonable reasons for the dismissal of any of his employees. It must be based on facts and evidence. A practice of fair dismissal of an employee deals with the factor of dismissal of an employee based on the practice of conduct of an employee within an organisation. Disciplinary warnings if they do not return, they use dismissal. There are some reasonable grounds for equitable separation:
The employee's misconduct
If it appears to the employer that the employee or worker has committed dishonorable or dishonorable behavior during the performance of his work, he may dismiss him directly and terminate the work contract, which is what is stipulated in Article 80, paragraph 3 of the Saudi Labor and Workers Law. Employees can also be dismissed in case of downsizing of the company and it falls under fair dismissal.
It can be stated as when the employee’s performance level and the quality of his work do not meet the requirements. If the employee does not raise his level, the employer has the right to dismiss him. The fair dismissal mainly falls under certain criteria which are listed within the bounds of the misconduct, as mentioned above it deals with unethical and unprofessional practices or behaviour within a workplace that can lead to the dismissal of an employee.
The employee committing an act of fraud:
If it is proven to the employer that the employee has resorted to falsifying any official documents to obtain the work or during the exercise of that work, he may terminate or terminate the work contract.
If the employee is absent from work without a legitimate reason for more than 30 days during one year or more than 15 consecutive days, the employer may terminate and terminate the work contract, but provided that a written warning is given to the employee after the absence of 20 days in the first case and within 10 days in the second case.
It can be stated as when the employer sees that there is no need for some jobs due to some reasons such as cost or that there is a new technology that has replaced the employee.
It is the process of dismissing an employee from his job without prior notice of dismissal, and without stating the reasons for dismissal. The employee may file a lawsuit in the event of unfair dismissal. Unfair dismissal includes situations like the dismissal of a woman who is pregnant; the dismissal of an employee who is going to be a father or providing him with paternity leave (Paiement, 2017). The case of family issue is also unfair to dismiss and it is also unethical to dismiss a deployment based on the grounds of race, gender, sex, religion or age.
The importance of exit interview:
These interviews with resigning employees provide information that the Human Resources Department can use to avoid losing more employees. Exit interviews are highly effective in getting an insight into why the employees are deciding to leave the organisation. An exit interview or resignation interview is an integral part of the employment termination process because the information that will be obtained can make major improvements in the company.
Employees should be honest when they give their feedback to the employer as this will reduce employee turnover and help him increase employee retention. Exit interviews of the ex-employees also provide an insight into the workplace and the ambience of the work process thereby incorporating necessary measures and strategies to improve the working conditions within a workplace. So, an exit interview is not only a routine process, but if managers understand its advantages, they will have a clear view of what is happening within the organization and they will fix it to develop the work environment. He may have encountered one type of misconduct and the manager and HR can find the solution and then change his mind on leave and continue working for the company
Key stages to be followed in managing redundancies and the impact of redundancy on the whole organisation:
“Redundancy is a special form of dismissal that occurs when an employer needs to reduce the size of its workforce” as stated by (CIPD Knowledge Hub, 2021). Therefore, the main stages in managing iterations are as follows
The human resources department plans the manpower and the actual needs of the company in order to achieve the company's goals, and use all data to maintain the company's performance and work to update it. Effective planning is required whether the need to have redundancy time frame is needed to be established with proper documentation.
Identifying the pool for selection
The pool will contain employees who have been selected for redundancies and it the list should be selected fairy and very carefully. A selection pool is to be considered for the employee in consideration based on their work performance and other relevant factors that will be justified for consideration of their cases.
After completing step “identification of a specific pool for selection” successful, organization should seek volunteers and offer them the redundancy package. This phase must be conducted with efficiency and truthfulness. Thereby an individual consultation with the legal form is necessary to be conducted to formulate an effective and fair justification for the process.
Employees who are in the final redundancies list should be consulted and given warning that they are in the list. The employees must be notified of their dismissal to allow them their right to appeal.
Selection of repetition:
If number of volunteered employees is not covering the required redundancies number then organization need to choose from the redundancies list and should be based on objective date such as: years of service, performance records, and attendance records.
Suitable alternative employment
The organization has to offer the redundant employees finally selected an alternative job and, in case of rejection, offer a redundancy package. The employees are to be given an effective calculation of the payment in a written record.
Appeals and dismissals
Once the employee has given and filled out the notice of redundancy, the employee must be given reasonable time to appeal to him.
Redundancy payment :
After the predetermined period to allow the employee to file an appeal, the payment is processed. Every employee within more than two years of service period is qualified for the statutory redundancy payment.
Counseling and support :
The organization shall provide support and advice to the employees after they have been laid off and provide them with any assistance required. Counseling and support are much important for the employees to improve their mood, reduce medical costs, and enhance their productivity and dedication level of the employees (World Health Organization, 2018). It also helps to treat emotional illness and promotes resilience and self-esteem.
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By: Neamah Ali Alamri