TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 QUESTION 2..................................................................................................................................3 Analysis of different types of employment contracts being implemented..................................3 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION The term employment contract has evolved with time where there have been regular trends related to the modification in the terms and conditions that earlier used to exist for both employer and employee (Brüll, 2019). In this report, different types of contract will be analysed by taking appropriate examples of the companies using such type of contracts. Further these techniques will be analysed from the perspective of both employers and employees. MAIN BODY QUESTION 2 Analysis of different types of employment contracts being implemented With the regular evolution in the employment technique and emerging trends of increased flexibility of employees, the employment trends have also evolved. The earlier technique of ring employees on regular basis and paying them in monthly or weekly manner has long evolved and now many diverse and new techniques have emerged (Guest and Isaksson, 2019). These modifications mainly involves the technique of using zero hours, part time employment, term time working etc as the major changes that have occurred in the employment patterns. Each of thesecanbeevaluatedinadifferentmannerandeachhastheirownadvantagesand disadvantages for themselves in the context of both employers and employees. These three techniques that have been identified can be critically evaluated from the perspectives of both employees and employers in following manner: Part Time Working: The concept of part time workers is prevalent in the every field of job now – a – days. This type of employments requires an employee to work for certain number of fixed hours every day or on a per week basis and they are paid accordingly. This type of employment is generally done in shifts where they can either work in morning, noon or in night as per their convenience (De Cuyper and Isaksson, 2017). The common requirement for an employee to be categorised as part time worker is if they are working for less than 30 hours per week, i.e. if this condition is complied with then the employee is treated as a part time worker. Sainsbury uses thistechniqueformajorityofitsemployeeforceandtherearevariousadvantagesand disadvantages that are associated with this kind of technique and these can be evaluated in following manner: Advantages and disadvantages for employers: AdvantagesDisadvantages 3
This technique helps in the attraction of employeesfromawiderpoolof potential candidates. The costs of employment can be reduced without the reduction in the number of employees and can assist heavily in time of heavy workload periods at Sainsbury (Mckinlay, 2018). It increases the flexibility and enhances the work life balance for employees as well. It leads to reduction in the absenteeism ratioamongsttheemployeesand removes tardiness as well at Sainsbury making them work more efficiently for limited number of hours. Itcancreatedifficultyincreating schedulesconductingmeetingsorin coordinationrequiredinprojectsfor different employees. It can also lead to understaffing in the Sainsbury at various points of times. Theremainingemployeesinthe organisationcanbetakenasless committed and unorganized and the job duties can also constantly change thus creating misbalance in the work place i.e. at Sainsbury. The names and other benefits that are receivedbytheemployeescanbe seriouslyaffectedbythiskindof employment mechanism. Advantages and disadvantages for employees: AdvantagesDisadvantages Flexibility is the key advantage behind usingthistechniquewherestudents, mothers,voluntaryworkersarethe most benefitted section of employees. The ease of fulfilling other necessary roles and duties along with the ones thatarearisinginthetermsof employmentisanotheradded advantage. Theworkersarestillabletoearn regularsalariescontributingintheir income. Therearevariousbenefitsthat employeesworkinginthismanner cannot enjoy such as health insurance, sick leaves, paid leaves, vacations etc. In times of crisis, the part time workers are the first people to be laid off by the company before those who have been working on a permanent basis (Laß and Wooden, 2020). Thepromotionofsuchemployeesis also at a very lower scale and they might not receive appraisals as well even after 4
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having adequate talent. Therefore, it can be evaluated that there are various benefits as well as disadvantages for this kind of employment technique that is being used. But despite the disadvantages, the benefits of this technique far more outweighs the potential disadvantages thus making it a preferable choice in today’s flexible environment. Zero Hours: The technique of zero hours contract is a very innovative idea under which there is basically no permanent employment contract between the employer and the so called employee (Alexander and Haley, 2015). The employers here basically contract the employees whenever the need for the work arises or when there is excessive work load and the employees are paid on the number of hours worked basis i.e. there is a fixed charge for every hour. The employer has no mandatory boundations to given job compulsorily to them and the employees are also having the freedom to accept the work that has been offered as per their own convenience. JD Wetherspoon Plc is one such organisation i.e. pub that is using this type of employment technique (JD Wetherspoon to offer staff chance to escape from zero-hours contracts,2019). The different advantages and disadvantages of this kind of employment technique can be evaluated in following context for both employer and employees: Advantages and disadvantages for employers: AdvantagesDisadvantages The first major advantage is related to theflexibilityaspectwherethe employerscaninviteandhirethe workers as and when the need for it arises. Forinstance,atJDWetherspoonas well, when the pub is busy on certain nights or for particular number of hours and then they are relieved (Freedland, 2016). This method is an extremely feasible technique where hiring employees as and when the need for them occurs and Theunpredictabilityisthemajor disadvantages for the employer. There is noguaranteeorassurabilitythatthe required employee will turn up as and when required. This lack of availability cancausemajorproblemsforthe company as a whole. The worker is not properly controlled and managed i.e. since the employee can work for another employer as well, this can cause serious threat to the privacy and planning of the organisation if the other employer is the one belonging to 5
additional rights also need not be given. Thelastmajorbenefitisthatthe productivityoftheworkersatJD Wetherspoonincreasesbythe implementation of this technique and they are able to effectively improve the work quality due to the choice that is available. the competitor. Advantages and disadvantages for employees: AdvantagesDisadvantages Despitethelackofthepropertitleof employee, the workers under the zero hour contracts are entitled to a certain numberofrightssuchasNational Minimum wage, right of statutory paid leaves, permission of rest breaksetc. There are many legal benefits that are available under this type of contract. Flexibility is a benefit for the worker here as well where they can easily accept of decline the request according to their comfort. Unpredictability is again a disadvantage for the worker here as well. There is no guarantee related to the availability of work.Thiscancausetheworkers problem in the difficult times when they require work but there is no employment available. The employee does not have the right to request for flexibility i.e. they have to either go as soon as they are called or canceltherequest(Whiteheadand Phippen, 2015). This can be troublesome when employee is in need of work but cannot go at that particular point of time. Therefore, there are several advantages as well as disadvantages that were evaluated and overall the technique does not seem to be a very feasible or good option for the employees as well as the employers. Term Time Working: This is another very effective technique of employment under which the employers calls the potential employee to work for a particular number of weeks or hours every year i.e. it is on an annual basis. The contract that is entered into by the employer and the 6
employee can be for either full time employment or on a part time basis for those particular numbers of hours or weeks (Arnow-Richman, 2016). This kind of technique is generally adopted in colleges and universities where they tend to hire professors for a limited time period in the entire year. Walsall College is an example of such colleges that hire mentors for a limited number of hours in the entire year and pay them accordingly. There are however certain advantages and disadvantages that are associated with such type of employment technique which can be analyzed in following manner: Advantages and disadvantages for employers: AdvantagesDisadvantages The college will be able to retain the key staff in the college and the additional staffsthatarerequiredcanbehired amongst the wider pool of candidates that are available for the desired job role. The employees can be hired according to the different seasonal requirements and thishelps immenselyin maintainthe costs as additional salaries can be given only when the need for those arise thus benefittinginthecostretention(De Cuyper, De Witte and Isaksson, 2017). Lastly the quality of work that is being performed gets improved heavily which createsbetterproductivityofthe employeesastheexpertknowledge related to that particular work field can be easily obtained. Themajordisadvantageisthatthiscan create inconsistency in the organisation i.e. they might not be able or maintina the positive productivity throughout the year in all their ventures. For instance if the students become familiar with the teaching of a particular teacher then they might require their assistance further in the future but cannot access it. Anothermajordisadvantageisthat sometimesevenwrongorunworthy employees can be entered into contract whichultimatelycreatesdoubleloss making situation for the organization thus creating disadvantage for the employer. Advantages and disadvantages for employees: AdvantagesDisadvantages For employees, the major advantages areThelimitednumberofemployment 7
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that they can work for a certain time period and then spend the rest of the time with their family. For instance, the teachers are given off when the college is closed and this is the time when the teachers can enjoy time own their family and children. Thetermtimeemployeeshaveallthe rights and claims to the different rights that are entitled to the employees thus allowing them to be more flexible and this is the greatest advantage. hours or weeks is again a disadvantage here as well where it can get difficult to earn money in the times when there is no work available. Another disadvantage is that there is still not the benefit of fixed term employee and the prestige that is associated with thiskindofpermanentjob(Marica, 2018). Therefore, it can be evaluated that the advantages that this kind of employment method offers are far more than the disadvantages that have been identified. This is the best technique that is being used in the educational field due to the feasibility that is gives to both employees and employers. CONCLUSION The research conducted in the report above helps in concluding that the employment types and contracts variety has definitely increased in the past years where a variety of new contracts are emerging. The report evaluated the three major employment contracts types i.e. part time, zero hour contract and term time contracts. On the basis of critical analysis that was done regarding the perspective of both employers and employee, it can be adequately said that the best technique was the term time contract where the flexibility and assurance of the job both is maintained along with quality work as well. Thus this report was very effective in identifying and concluding the changes in the employment trends. 8
REFERENCES Books and Journals Alexander, C. and Haley‐Lock, A., 2015. Underwork, Work‐Hour Insecurity, and A New Approach to Wage and Hour Regulation.Industrial Relations: A Journal of Economy and Society.54(4). pp.695-716. Arnow-Richman, R., 2016. Modifying At-Will Employment Contracts.BCL Rev..57. p.427. Brüll, E., 2019. Restrictions of fixed term employment contracts: Evidence from a German reform.ZEW-Centre for European Economic Research Discussion Paper, (19-034). De Cuyper, N. and Isaksson, K., 2017.Employment contracts and well-being among European workers. Routledge. De Cuyper, N., De Witte, H. and Isaksson, K., 2017. Employment Contracts—How to Deal With Diversity?. InEmployment contracts and well-being among European workers(pp. 15- 34). Routledge. Freedland, M. R., 2016. The contract of employment and the paradoxes of precarity. Guest, D.E. and Isaksson, K., 2019. Temporary employment contracts and employee well-being during and after the financial crisis: Introduction to the special issue. Laß, I. and Wooden, M., 2020. Temporary employment contracts and household income.Social Indicators Research.147(1). pp.111-132. Marica, M.E., 2018. Positive and negative implications entailed by fixed-term employment contracts.Journal of Accounting and Management Information Systems.17(1). pp.153- 166. Mckinlay,N.G.,2018.LONGWORKINGHOURS,SOCIALPSYCHOLOGICAL STRESSORS, AND POOR HEALTH: THE EFFECT OF FLEXIBLE EMPLOYMENT CONTRACTSONWORKERS’PHYSICALANDPSYCHOLOGICAL HEALTH.American Journal of Medical Research.5(2). pp.64-69. Whitehead, O. and Phippen, A., 2015. An investigation into the ideas and effects of zero-hour contracts within the United Kingdom.Journal of Research Studies in Business and Management.1(1). pp.189-209. Online 9
JD Wetherspoon to offer staff chance to escape from zero-hours contracts.2019. [Online]. Available through: <https://www.theguardian.com/uk-news/2016/sep/12/jd-wetherspoon- sports-direct-zero-hours-contracts> 10