Unit 10

Employee Relations
If workers violate provisions of their work agreement, company regulations or collective bargaining
agreement, employers may discipline workers through warnings and demotions, in proportion to the
workers’ violation. Employers may terminate a worker’s employment after issuing three warnings.

Employers must resolve grievances and disputes in compliance with legal requirements. Where there is
a dispute between an employer and a worker, the employer must first enter bipartite negotiations in good
faith with the worker and/or with their union representative. If the parties fail to reach agreement, the
dispute can be addressed to the Institution for the Settlement of Industrial Relations Disputes.

Supervisors must not use sanctions that are disproportionate to the workers’ behaviour, and may not
bully, harass or subject workers to humiliating treatment. They should not hit or push workers, or throw
things at them. Restricting access to food, water or toilets; threatening or shouting at workers,
or publicly scolding workers in a degrading manner also are inappropriate.

What are disciplinary and grievance procedures?

Disciplinary and grievance procedures provide clear structures for dealing with difficulties which
may arise as part of the working relationship, from either the employer’s or employee’s
perspective.

These procedures are needed to ensure every individual is treated equally in similar circumstances
and to deal with issues fairly and reasonably. They also ensure that employers comply with current
law and follow the Code of Practice: Disciplinary and Grievance Procedures. Most employers
have their own procedures which comply with the Code.

Disciplinary procedures are needed to:

• Make employees aware of what's expected of them in terms of standards of performance

or conduct (and the likely consequences of continued failure to meet these standards).
• Try to resolve matters without recourse to an employment tribunal.
• Demonstrate to an employment tribunal that an appropriate process has been followed if
employees complain about the way they've been dismissed.
Grievance procedures are needed to:

• Provide individuals with a course of action if they have a complaint which they’re unable
to resolve informally.
• Provide points of contact and timescales to resolve issues of concern.
• Resolve matters internally without recourse to an employment tribunal.

They can also help to avoid costly and time-consuming tribunal cases.

Employers should have clear individual dispute resolution procedures that are communicated to
all staff. Line managers and any employees involved in managing disciplinary and grievance
matters should be properly trained in the organisation’s policies and procedures and know how to
implement them. All disputes should be handled in a fair and consistent way across the
organisation.

Suspension and/or dismissal can have a significant detrimental impact on any individual.
Disciplinary policy and practice

Using the disciplinary process

There are two main areas where a disciplinary process may be used: capability/performance and
conduct.

Capability/performance

Capability issues may arise because an employee is unable to perform the work to a satisfactory
standard due to inadequate training or another reason. An employer must try to identify the reason
and give appropriate support before invoking a formal procedure.

Situations where an individual is unable to do their job because of ill health may also fall into this
category. In these instances, an employee should be dealt with empathetically and offered
appropriate support. Employers should ensure they comply with the Equality Act in cases of
absence where the individual has a disability or health condition, including the duty to make
reasonable adjustments.
Conduct

Employee misconduct could cover a wide range of issues that vary in their level of seriousness,
including:

• Continued lateness.
• Failure to follow a reasonable management instruction.
• Abuse of the organisation’s computer system or Internet access.
• Bullying behaviour or creating a hostile work environment.
• Theft.
• A criminal offence.

In all cases, an employer should follow their own procedures as well as the Code.

The more serious offences may constitute gross misconduct, which could involve offences such as
theft, physical violence or serious insubordination. Although the employer can dismiss an
employee with immediate effect for gross misconduct, it’s still important to follow a fair procedure
and investigate the alleged offence. There should also be an opportunity for the employee to
respond before making a decision to dismiss

Stages of the process

If disciplinary action is to be taken, it should usually have at least three main stages:

• A letter.
• A meeting.
• An appeal.

The employer should always carry out a full and fair investigation to determine the facts and to
decide if further action is necessary. The code has published guidance for those carrying out
investigations, and recommends that an investigator should be trained for the role.

Record-keeping
Employers should keep meticulous records of disciplinary action and communication, which will
be vital should a case go to an employment tribunal. The type of records to keep include:

• Minutes of all meetings.

• Texts.
• Emails.
• Attendance notes.
• Notes of telephone calls.
• Copies of correspondence.

Handling disciplinary interviews

The employer should train and support all line managers to ensure that they are confident and
competent to carry out disciplinary meetings.

An employee or worker is entitled to be accompanied by a work colleague or trade union official

at formal disciplinary and grievance interviews. It’s good practice for an employer to offer this at
any investigatory meeting.

Key recommendations:

• Ensure everyone involved in conducting the disciplinary process understands the

importance of following the correct procedure; even if the case against an employee seems
proven, the individual may still be treated unfairly if the correct procedures aren’t followed.
• Ensure all the facts are investigated, including consulting the individual’s personal file for
relevant information.
• Make sure the letter inviting the employee to the meeting states why they’ve been asked to
attend and that they may have a companion present.
• Give the individual reasonable notice, ideally more than 72 hours.
• Before the meeting, provide appropriate statements from the individuals involved, together
with any key information both parties intend to rely on.
• Make sure another manager can be present to take detailed notes and help conduct the
interview.
 • Never pre-judge the outcome of the interview before hearing the employee's perspective.
• Start the interview by stating the complaint to the employee and referring to appropriate
statements from witnesses.
• Give the employee plenty of opportunity to put forward their side of the story and call any
supporting witnesses.
• Employers can also call witnesses, but they can only be in the room for the relevant part of
the interview.
• Make use of adjournments; always take a break to consider and obtain any additional
information before reaching a decision.
• Communicate the decision in person if possible and give reasons, taking account of any
mitigating circumstances, and ensure you give details of how to appeal.

What is an Industrial relation?

These come from the words Industry and Relations

‘Industry ‘can be viewed as an economic activity (i.e., manufacturing, producing or processing of

goods or services) which is performed by a group of individuals.

‘Relations’ here refers to the connection and communication which pertains between the employer
and the employees within a workplace.
 Employer Obligations

Employer obligations to employees include:

• Provide a safe workplace

• Pay correct wages
• Reimburse employees for work-related expenses
• Collect Tax installments and forward to the Tax Office
• Make payments as required by law towards the employee's Superannuation
• Provide a workplace free from harassment including sexual harassment
• Allow employees to join a union

A written employment contract commonly addresses the following express duties of an employee:

• devoting your whole time and attention during working hours to carry out your responsibilities;
• acting diligently and to the best of your ability in performing your work;
• using your best endeavours to promote and protect the interests and reputation of the business;
• complying with all reasonable and lawful directions of your employer;
• complying with all health and safety requirements specified by your employer;
• using business property only to perform your work;
• not engaging in any conduct which conflicts with the business; and
• participating in any performance reviews reasonably required by your employer.

Industrial Conflict
Industrial conflict is the disagreement of interest which results into discontentment of different
degree between employers and employees in the workplace. It is the situation where disputes and
disagreements arises between employers and their employees over matters related to working
conditions.

Industrial conflicts can be formal or informal and here are some of the causes:

1. Wage demands: Many employees may believe they need to be paid more but their
employers may not agree
 2. Working conditions: Employees may take actions if there a risk to themselves or other co-
workers in the workplace
3. Management policies: Such as concerns over leave entitlements
4. Political and social issues: Involves wider issues such as environmental and political,
where employee might take actions to support a cause.

Other causes of workplace conflicts that affect production and bring down the profit for the year
are:

Resistance to Change
In the workplace, as days go, employees get used to their routine and start to feel comfortable with
their assigned jobs. When, for a solid reason, the management restructures the office and enhances
the nature of the job to the benefit of the employees, some employees show resistance to adapting
to that change. Now, it becomes the responsibility of the management to help employees
understand the need for change and accept it to embark on a new beginning.

Poor Working Habits

Employees must know how to work professionally once they are in their workplace. Some
employees may be sloppy in their work or some may take extra care of their work. Training
programs will help employees to understand their roles in the office and act sensibly while
completing their assigned jobs. Talk in person with the team members or arrange for a meeting
with the professional counselor to eliminate negative vibes and bring positive changes in the
workplace.

No Clarity in Assigned Jobs

Issues arise when there is no clarity while assigning job profiles to new employees. Frequently
changing job expectations can also lead to confusion among employees. Even after having an
adequate number of years in service, some employees fail to have a clear picture of their job
responsibilities. Though induction programs clearly explain what the organization expects from
the employees, it is better to have regular training sessions to help employees understand their
roles and responsibilities clearly. This will help to prevent workplace conflicts.

Poor Communication
Lack of communication among teams and team members in the organization often leads to
workplace conflicts. Management must exhibit transparency and give space for employees to
approach them whenever they need clarification to clear their doubts. Team leaders must
communicate effectively with their team members so that every team member understands
assignments and instructions thoroughly. Poor communication between peers and colleagues can
also trigger problems. It is better to check if everyone has received the information correctly. For
it will help to build the morale of employees to move on smoothly with no issues.

Handling Differences in Personalities

Every organization has employees from different cultures, backgrounds, experiences, preferences,
and temperaments. Personality clashes among team members could lead to workplace conflicts.
When there are individual differences between team members, it leads to a lack of mutual respect
among them. It will have a drastic impact on workplace relationships and affect productivity.

The managers or team leaders must understand the issue and resolve them in the beginning stage
itself. As colleagues, every employee must understand the strengths and weaknesses of the other
employee and behave accordingly.

Lack of Supervision
The absence of good supervision in the workplace leads to workplace conflicts. The managers and
team leaders must understand their supervisory roles not only to check the completion of assigned
jobs but also if there to know if there is smooth interaction within the team. They must be able to
identify even trivial issues among team members and be ready to listen to everyone with an
unbiased approach while handling issues.

Unacceptable Work Culture

An unhappy workplace has a toxic work culture that supports bullying and abusive behavior
among team members. When a trivial issue grows into a serious workplace conflict, the entire
work environment turns hostile. It not only affects the productivity but also the mental strength of
the employees. Since workplace conflicts have a direct impact on the productivity of an
organization, management must pay special attention to maintaining a happy work environment
where everyone is content and comfortable while doing their assigned jobs.

No Understanding of Workplace Policies

Every organization follows a set of policies and procedures to be professional while at the
workplace. When some employees fail to follow them, there will be no effective implementation
of the rules and policies. Management must make every employee understand that rules are there
to benefit them and make their working hours peaceful and comfortable.

Following Different Values and Work Styles

Just like different personalities, employees have different workplace values. The workplace values
supported by older workers may be different from younger workers. Not accepting the difference
between workplace values may lead to workplace conflicts. When a difference of opinion leads to
a workplace conflict, it may affect the harmony of the workplace and productivity as well.
Similarly, it can lead to unhealthy workplace competition that can affect teamwork and bring down
the confidence level of employees.
Employers Representatives

Employer
Employer: An employer is the authority which employs and pays employees for their labor. It may
be an individual person or it may be a company representing many people. Within the relationship
between employers and their employees, the employer is the party which will typically define the
terms of employment and write the contract. They are then obligated to provide the agreed-upon
compensation to workers for any labor they perform that is contained within the terms of their
contract. An employer is also the party legally liable for work conditions, maintaining labor laws
and handling any legal action an employee may pursue.
Employment Relationship
The employment relationship is the legal link between employers and employees. It exists when a
person performs work or services under certain conditions in return for remuneration.

It is through the employment relationship, however defined, that reciprocal rights and obligations
are created between the employee and the employer. It has been, and continues to be, the main
vehicle through which workers gain access to the rights and benefits associated with employment
in the areas of labour law and social security. The existence of an employment relationship is the
condition that determines the application of the labour and social security law provisions addressed
to employees. It is the key point of reference for determining the nature and extent of employers'
rights and obligations towards their workers.

Employer's Representative means the person appointed by the Employer to act as Employer's
Representative for the purposes of the Contract and named as specified, or other person appointed
from time to time by the Employer.
Collective Bargaining
Collective Bargaining refers to the discussion and negotiation between the employer and the
employees on the terms of employment, including the working environment, conditions of
employment, shift length, work holidays, vacation time, sick leave, and health care benefits, as
well as compensation based items like basic pay, overtime pay and retirement benefits.

Objectives of Collective Bargaining

To foster a pleasant and cordial relationship between employer and employees.

To equally safeguard the interests of both employer and employees.

To ensure that the government intervention is maintained at a minimum level.

To encourage the maintenance of a democratic environment at the workplace.

How does it Work?

In collective bargaining, negotiations occur between the employer’s management and the labour
union leaders, who represent the trade union workers. The union members pay the labour union
leaders for representing the latter. The negotiations result in the collective bargaining agreement,
 which describes the rules of employment for a certain number of years. Collective bargaining is
very important because dissonance between employer and employees can result in various
antagonistic events, such as labor strikes, lockouts, etc.

Types of Collective Bargaining

It can be classified into five major types:

1. Distributive Bargaining: In this type of negotiation process, one party benefits at the expense of
others. It discusses redistribution of profit sharing to increase wages, bonuses, or financial benefits.
2. Integrative Bargaining: In this type of bargaining, the agreement is reached so that both the
participating sides tend to benefit a win-win situation. In other words, both parties consider each
other’s needs and concerns.
3. Productivity Bargaining: In this type of bargaining, the negotiations revolve around productivity
and pay. The two parties agree to certain changes that promise to boost productivity in exchange
for higher wages.
4. Composite Bargaining: This type of negotiation emphasizes various factors not directly related
to pay but rather focused on employee welfare and job security. It ensures the long-term
relationship between employer and employee that is mutually beneficial.
5. Concessionary Bargaining: In this type of bargaining, the union sacrifices some benefits to bail
out the employer during the stressed economic situation, which benefits the employees in the long
run.

Models

Negotiation: In this process, two conflicting parties or their representatives discuss among
themselves, without the involvement of a third party, to settle themselves. However, most involved
parties hire seasoned lawyers themselves to settle such matters.

Mediation: In this process, a neutral third party acts as the mediator between the conflicting parties
to settle. The mediator aids communication between the two parties and ensures that it occurs
fairly, honestly, and impartial. They help identify and clarify the underlying issues of the dispute.
 Arbitration: In this process, the third party, known as the arbitrator, decides on the settlement.
The arbitrator listens to the arguments of the conflicting parties and then makes an informed
decision, similar to what a Judge does in the court.

Importance of Collective Bargaining

The importance of collective bargaining can be ascertained from the point of view of –
management, trade union, and government.

• Management: The primary objective of the management is to make maximum utilization of the
workforce and earn higher profits. It can only be achieved if the workforce co-operates, where
collective bargaining comes into play.
• Trade Union: Each labor at the individual level has poor bargaining power against the
management. Hence, the working class united to form a powerful union and protect their interests
through collective bargaining.
• Government: Typically, collective bargaining keeps the Government at bay, and they are not
required to employ force to resolve disputes.

Advantages

• Both parties get to understand what to expect from each other.

• Employees are safeguarded from exploitation by employers.
• The management has to deal with a small number of people (trade union leaders).

Disadvantages

• Only a few people decide on the settlement.

• It is costly, both in terms of money and time, as representatives have to discuss the same thing
multiple times.
DIFFERENCE BETWEEN NEGOTIATION, MEDIATION, ARBITRATION

Negotiation is where two parties in contention or dispute (battle) arrive at a settlement between
themselves that the two of them can concur on. Negotiations are reached through conversations
made between the parties or their delegates without the inclusion of the outsider. Each gathering
ought to counsel or see a legal advisor before settling down the issue, so they are very much aware
of their privileges and obligations in regard to the issue or dispute they are happy to fathom.

Mediation implies the cycle wherein an impartial (implies not supporting any one side) outsider
helps the parties in strife to arrive at an answer. The outsider is known as the middle person and
the arbiter encourages correspondence between the parties. The middle person oversees the
correspondence measures between the parties reasonably, genuinely, and fairly. The arbiters don't
favor one side, offer lawful guidance, or give advice. They don't go about as Judge or arbitrator.
They help by explaining the issues in dispute and recognizing the hidden concerns. They aid each
gathering to comprehend the other party's inclinations. Go betweens now and then host the
gatherings meet vis-à-vis. On different occasions, an arbiter may carry to and fro between parties
in independent areas. They additionally aid the looking of a goal (a conventional articulation of
sentiment or expectation made) to the issue yet won't force an answer.

Mediation happens in private and the choices came to are private. A Memorandum of Agreement
MOA is a helpful agreement or an archive composed between the parties to collaborate on the
concurred terms and conditions. The fundamental reason for MOA is to have a composed
comprehension of the agreement between the parties. is reviewed by the Mediator illustrating the
subtleties of the arrangements that came to by the parties. The parties should have their individual
legitimate guidance (lawful direction is the individual speaking to the gathering to the dispute)
audit the Memorandum of Agreement. Each gathering is urged to talk with their attorneys before
mediation so they know their lawful rights.

Negotiation and Mediation is more affordable and less tedious than Court activity. An agreement
is empowered however the parties are allowed to seek after different cycles on the off chance that
they can't agree.
Arbitration alludes to the cycle where the choice is made by an outsider. The arbitrator hears the
case as introduced by the parties in struggle or dispute (battle) and settles on a choice or grant
similarly as a Judge would. Grants are commonly last and official on all parties. Honor might be
recorded in Court and authorized as though it were a Court judgment. Arbitration is usually utilized
in labor disputes and business disputes. It is likewise utilized in oil and gas disputes, protection
guarantee disputes, and family and separation disputes.

The arbitrator orchestrates a gathering between the parties to figure out what issues should be
settled. The arbitrator at that point holds a consultation into the issue where the two sides present
data and proof they accept upholds their case. The arbitrator may likewise demand composed
entries previously and additionally after the meeting. When the arbitrator has all the proof, the
arbitrator considers the issue and issues a choice that is official upon the parties. It can often require
some investment to get an arbitration choice.

What is the recognition of a trade union?

A trade/labour union is deemed recognized when an employer agrees to negotiate with the union
on matters of pay and working conditions for the workers represented by the union. Recognition
may be voluntary or statutory.

The underline idea of former trade union is to negotiate and bargain with employers to improve
the service and employment conditions of workers on their behalf. This collective bargaining
process can be possible only when employer recognises a trade union as bargaining agent and
agree to negotiate with it because it is difficult to negotiate with multiple trade unions in a single
organisation.

The usual methods used to determine union strength, which is the basis of the recognitions
are following:

1. Election by Secret Ballot:

Under which system, all eligible workers of an establishment may vote for their chosen union,
elections to be conducted by a neutral agent, generally the Registrar of Unions, in a manner very
similar to the conduct of general elections. Once held, the results of the elections would remain
valid for a minimum period, usually two years.

2. Check-Off method:

Under which each individual worker authorises management in writing to deduct union fees from
his wages and credit it to the chosen union. This gives management concrete evidence about the
respective strengths of the unions. But the system is also prone to manipulation, particularly
collision between management and a favoured union. Sometimes, genuine mistakes may occur,
particularly when the number of employees is large. It also depends on all unions accepting the
method and cooperating in its implementation.

3. Verification of union membership

Method by the labour directorate as adopted as a resolution in the same session of the ILC and
used widely in many establishments. This process is carried out by the labour directorate, which
on the invitation of unions and management of an organisation or industry, collects particulars of
all unions in a plant, with regard to their registration and membership. The claim lists of the unions,
their fees books, membership records and account books are scrutinised for duplicate membership.
Under a later amendment, unions also with lists of members in order to avoid dual membership.
After cross checking of records, physical sampling of workers, particularly in cases of doubt or
duplication, a final verified list is prepared for employers, unions and the government.

4. Rule of Thumb or intelligent guessing by management or general observation

To assess union strength, either by the response at gate meetings, strikes or discussions with
employees. This is not a reliable method, particularly in large establishments and can also be
subject to change at short intervals.