Employee Relations: Analyzing Legal Framework & Stakeholder Impact

This report provides a detailed analysis of employee relations, its value and significance within an organizational context, focusing on Unilever Plc. It explores the fundamentals of employment law, including key legislations and the rights, duties, and obligations of both employees and employers. The report evaluates the psychological contract and support for employee work-life balance, examines different mechanisms for managing the employment relationship, and discusses how stakeholder engagement contributes to positive employment relationships. It further analyzes the impacts of positive and negative employee relations on employee motivation, engagement, and performance, culminating in recommendations and conclusions based on a critical insight into the role of various stakeholders.

Employee Relations

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK...............................................................................................................................................4
P1. Employee relations and its value and significance within the organizational context.....4
P2. Fundamentals of employment law...................................................................................6
M1. Analyze the significance and value of employee relations in respect of enhancing the
outcomes of an organization with some examples.................................................................7
P3. Different types of rights, duties and obligations of an employee and employer within the
organization............................................................................................................................7
P4. Appropriate advice which is related to rights, duties and obligations of the employment
relationship with a range of organizational examples. ....................................................8
M2. Evaluation of psychological contract and support for employee work life balance.....11
D1. Different mechanisms for managing the employment relationship as well as make the
appropriate solutions for a range of organizational examples..............................................11
P5. A stakeholder engagement and contribution can support positive employment
relationships..........................................................................................................................12
M3. Different stakeholder perspectives and interests in the broader business environment to
support positive employment relationships..........................................................................14
P6. Impacts of positive and negative employee relations within the organization..............14
M4. An evaluation of the impacts of employee relationship with employee’s motivation,
engagement and performance...............................................................................................16
D2. Recommendations and conclusions based on the critical insight into the role of various
stakeholders and the impact of employee relationships.......................................................16

CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................18
Books and Journals:..............................................................................................................18

INTRODUCTION
Employees are the human assets of the organization and very significant to the
companies. The term employee represents managers and workers who are working in an
organization or a company or a community. In other words, it can be said that when an employer
hired a person to a specific job in exchange for payment can be called as employee. Employee
relations defines those efforts by an organization in order to create and develop a positive
relationship with their employees. When an organization maintains a positive and constructive
relationship then they are able to keep their loyal employees and maintain more employee
engagement in the organization (Al-Bahri, A. A. S. K. and Othman, K. B., 2019). When an
organization have dedicated employees then it will help to achieve the common goals and
objectives of an organization as well. The aim of this report is to discuss the significance of
employee’s relation in the Unilever Plc which is one of the British consumer goods company in
UK. The company is multinational in nature which provides different products and services such
as food, well-being vitamins, tea, coffee, ice-cream, cleaning agents, condiments, toothpaste,
personal care, beauty products and so on. The company was established by William Lever and
Margarine Unie in 1929. It is also identified that it is one of the biggest producer of soap
throughout the world. The report is aiming the significance of employees relation, fundamental
of employment laws, appropriate advice related to rights, duties and obligations of employee and
employer, signifies the role of stakeholder's which impacts positively in the employment
relationships and many more.
MAIN BODY
TASK
P1. Employee relations and its value and significance within the organizational context.
Meaning of employee relations: Employees and management are the two major aspects which
enables an organization to achieve its success. Employee relations have a direct influence with
employee engagement and satisfaction (Austin, L. J., 2021). Most of the companies like Unilever
are like to invest more in human resources in order to improve their relationships with employee
as well as keep their organizational environment healthy. The purpose of employee relations
strategy is to enhance the relationship and collaboration in the organization. This mainly focuses

on to make sure that employees in the organization are productive, happy as well as engaged
with their job. It also helps to foster a good relationship between employee and employer.
Employee relations manager plays a role of investigating the cases and tracking issues which is
related with a wide range of topics such as coworker conflicts, performance problems, work
policy violations, sexual harassment allegations and behavioral issues. Sometimes it creates a
workload for the ER professionals. Understanding the employee relations is significant as well as
crucial for the human resource management of an organization. When the employee relations are
not working properly then it may cost to its reputation (Azzahra, M. and Et.al., 2019). In context
to Unilever Plc, there are some examples of employee relations that might carry out with
employee relations manager (ER experts or professional); take employee engagement and
provide appropriate solutions for enhancing it, identification of issues that require to be
investigated, organization bullying affects the performance of employee, violating safety rules,
neglect the communication with authorities issues with personal hygiene, appearing drug or
alcoholic problem that affects the progress of employees job and many more.
Importance and value of employee relations:
Development and growth: When a relationship between employees and management is
harmonious then it will lead to effective productivity as well as work efficiency get improved.
Better communications and consistent motivation eliminate the barrier between employee and
employer. When employees are positive in the organization they will put their best efforts to
accomplishing the organization goals and objectives. Unilever always try to improve the
employee relations which supports in the optimum utilization of resources.
Reduce conflicts: Some of the major employee relations issues are labor clashes or conflicts in
the organization. When the culture of an organization is friendly, serene and efficient then it
helps to reduce the conflicts. Rarer rattles will result in boosted productivity and concentrated
work. Mediating, investigation or conciliation some of the basic support which helps to reduce
the conflicts and improve the employee and employer relations.
Employee loyalty: Employee loyalty plays a very important role in the development of any
organization as its termed as a valuable asset of an organization. An employer never wants to let
go their employees for petty misunderstanding and issues and helps to provide a healthy and
happy work culture so that the bond between the two parties can be enhanced (Bartsch, S. and

Et.al., 2020). Investing in the gaining employee loyalty and developing employee relationship
management in return is the biggest success of the organization.
Improve trust and confidence: Fostering the trust and confidence between employer and
employee in the organization require a lot of efforts. Most of the organization introduce ER
professionals who are interested with keeping the efforts of a company for maintaining better
employee relations (Bean, R., 2021). It also depends on the communication of employee and
employer.
Enhanced work life balance: It is also important to maintain the work life balance in the
organization. But nowadays managers fall prey to the heavy workload culture that stops them
from having rejuvenated time. Employees become demotivated in the organization and their
experience burn out due to the excess workload in their jobs. In context to respective
organization, they are focused to ensure a good work life balance.
P2. Fundamentals of employment law.
Employment law is the area of law that oversees the relationship of employee and
employer in the organization. If an organization has more than one employee, then they are
likely to practice employment laws (Chan, T. J. and Mohd Hasan, N. A., 2018). State and federal
laws are covered in this section which includes various subjects with the common objective in
order to protect the rights of an employee. In context to Unilever, there are different types of
employment laws including working time regulations act, 1998, national minimum wage act,
1998 and many more. Other types of employment laws are consisting with compensation and
child labor, workplace safety and immigrant employment laws. Some of them are mentioned
underneath: -
Employment Rights Act,1996: In this section, under employment contract, an employee has a
right to get the term and conditions of working in written form or in contract and must be given
to the employee within two months of start of working. This is known as “ written statement of
particulars” Along with this, employee comes with a right to get a reasonable notice of being
dismissed or terminated.
National Minimum Wage Act, 1998: It creates a minimum wage rate for the employees across
UK. It is apply to those workers who has a a contract to work personally rather than for a

customer or a client of the company. It is included with a right that basic entitlement of the
worker must be not reduced.
Worker's time regulations Act, 1998: This act creates a basis work timings for the workers
which include to get a 28 days paid leaves, a right to get paid break for at least 2o minutes for
each 6 hours worked, a right to get weekly holiday which is of full 24hours. This must be apply
to all the employees in the company who must get minimum rest break, weekly pay off,
maximum average working week.
M1. Analyze the significance and value of employee relations in respect of enhancing the
outcomes of an organization with some examples.
It has been analyzed that employee relations improves business outcomes significantly.
Organizations have an experience of strong employee engagement will results in increased
productivity . In context to Unilever, they must ensure that their employees feel appreciated and
empowered at the work place. Good employee relations helps to boost the motivation and
morale. When an organization maintains healthy and strong bond with their employees then it is
the per-requisite for the success of organization (Ettinger, A., Grabner-Kräuter, S. and Terlutter,
R., 2018). Strong employee relations lead to more productive, motivated and efficient employees
which further lead to addition in sales level. Some of the examples are prevents issues of
employees, resolve disputes between employee and employer or between employee and
employee as well, reduces absenteeism will increase the results of business. It is important to
have good communication between employees and employers in the organization where a safe
space must be created that employee must be free to open with their dialogues. When employees
in the organization are listen by their employer or leader in a proper way, it build loyalty that
someone is try to understand their thoughts, issues which ultimately builds a trust, respect and
loyalty between both of them. When employees are loyal to the firm, it become easy for the
employer to accomplish the goals and objectives.
P3. Different types of rights, duties and obligations of an employee and employer within the
organization.
Employer and employees have different types of rights, duties and obligations in the
company. Workplace rights will protect the employees from any harmful events such as
employee discrimination or unsafe working environments. Obligations at the workplace hold

workers responsible for their doings and also ensures that workers performs responsibly and
ethically at the workplace. Fair Treatment: Employees have a right to be treated fairly in the organization. This
involves freedom from organization harassment and discrimination. Anti discrimination
laws such as Civil Rights Act which helps to protect employees from unfair treatment. Rights Violation: When an employer violated an employee's rights then he has different
choices to the cure the situation (Han, Z., Wang, Q. and Yan, X., 2019). An employee
should bring the situation in front of the human resource manager or representative first
but if they fail to correct the situation then an employee has a right to file an official
complaint with the department of labour or EEOC. This authorities investigate the case
and if find anything then they may file a charges against the employer in order to violate
the rights of the employee.
 Working Conditions: Employees have a right to work in the environment which is safe
and secure and free from harmful hazards and undue stress. On the other side employer
have responsibility and obligation to offer the safety of employee. Harmful working
environments will also have unreasonable job duties, unfair pay and working hours. Fair
labor standards make sure that labour gets their compensation on time for their hours
worked.
P4. Appropriate advice which is related to rights, duties and obligations of the employment
relationship with a range of organizational examples.
An employer and employee is liable to perform and finish his work. In context to
Unilever, there are many rules that must be follow in the organization. Some of them discussed
below:-
Rights of an employee:
 He has a right to have healthy and safety working environment. The company is liable to
provide a safe working atmosphere to their employees where there must provide adequate
arrangements and safety must be controlled in order to meet any emergency.
 He has a right to ask for proper rest time at their jobs. Most of the companies like
Unilever, provide half and hour time for their rest as this offers him both mental and

physical rest. When they will resume their work, this will impact on productivity in
positive way.
 Employees must know that annual paid leaves will not offer as benefits but also they
have a right to get it (Ho, V. T. and Et.al., 2018I). They have a right to ask for their paid
leaves, sick leaves to the company. Every organization is responsible to fix a certain
number of fixed holidays to their employees which they will get and enjoy.
 He also has a right to claim medical expenditure from the organization. Even though
there are several safety rules and regulations at the workplace but uncertainty happens or
unexpected situations arises then an employee has a right to get a medical claim from the
company.
Responsibilities and obligations of an employee:
 He must do their work personally for which he hired in the company.
 He is liable to work seriously and carefully otherwise in some cases he can get fired or
disciplined if they are often absent for no good reason or late for their work.
 He must be loyal to the company and must not disclose the confidential information to
anyone.
 He must treat their employer, co-worker, customer with respect and must make sure that
they not discriminate or bully against any other co-worker (lyas, A. and Et.al., 2021).
 He must be responsible for wear uniform or any other protective equipment which is
offered by his employer.
 He must attend all the training and development session which is provided by the
management.
 He must be liable to perform workplace's safety rules and instructions.
Rights of an employer:
 An employer has a right to hire or fire a person in the organization. He has a right to
select the best and suitable candidate that fits in the particular job which is based on the
knowledge, qualifications or experiences. But he can not discriminate a candidate on the
basis of race, age, religion, caste, religion or his disabilities.

 He also has a right to protect the information of his client or trade secrets which is very
confidential to the company (KadharLal, D. A., 2020). Employees are liable to sign the
Non-disclosure agreements to the employers. Because the confidential information is not
only accessible to the employers but also to the employees. He can use the use sensitive
details of clients or trade secrets of company in order to fulfill his duty at the workplace.
 He has a right to receive resignation letter from the employees before he leaves the
company. The employee is responsible to serve a notice period to the employer in order
to fill his post with other replacement (Kam, A. and Trippner-Hrabi, J., 2021). It is
depend on the company's HR policy of company to serve a notice which ranges from 1
week to 1 month. If an employee leave the company without any notice then employer
has a right to give a legal notice to the specific employee.
 He also a right to get informed or notified about the leave which is taken employee.
Employee is liable to inform about his leave before taking it from the company. He also
has a right to approve or reject the leave application of an employee. He can reject the
leave application on the basis of poor performance, not performing his duty well or
already took many leaves earlier or he is required to fulfill his duty or the company needs
it.
Responsibilities and obligations of an employer:
 It is the duty of employer to promote healthy and safe working environment in his
organization, boosts the employee's moral and performance, and contribute to the
development of company.
 He has duty of provide the basis amenities to all the contract labor and employees present
in the organization (Kasuso, T. G. and Sithole, K., 2021). This facilities include the clean
washroom, First-aid facility, hygienic canteen, restroom and clean drinking water
facilities.
 It is the duty of employer to make sure the presence of representative at the time of
distribution of wages. It is the duty of representatives to check the distribution of wages
without any discrepancies or errors.

 It is also the duty of employer to provide and ensure the safety of women workforce in
the company (Kelly, K. S., 2020). These obligations includes organize the women safety
awareness programmes, displaying on the notice board about the outcomes of crime
against women.
 The employer has been obliged of hired a woman within six months of delivery or
miscarriage.
 He is also bound to not force a woman who is carrying a baby to do any operose work
which needs long hours of standing work ad so on.
M2. Evaluation of psychological contract and support for employee work life balance.
It is seen that individual psychological contracts enables employee to see their role and
worth in the workplace. It helps to avoid unrealistic expectations from the both the sides. This
also defines the amending the terms of the contract if required which can done through
communication on the regular basis. It has been evaluated that there is some mutual
understanding, commitments or expectations which are unwritten , intangible to make up their
relationships. This is also used to create and maintain the positive relationship between both
parties. A balanced psychological contracts is also helps to advance the career in exchange of
high performances on job tasks. When employees do their extra time in the activities or they can
leave or drained the little energy for non work tasks (KOUADIO, A. B. and EMERY, Y). If
personal obligations are not prioritize then it is become easy to ignore the other vital activities of
the life.
D1. Different mechanisms for managing the employment relationship as well as make the
appropriate solutions for a range of organizational examples.
Every organization knows that they require an effective employee relations strategy but
many of them does not how to form an effective strategies but some of they is sure about this.
These relations are influenced by different factors but also they impact the strategic balance
between employees and employers. There are many mechanism such as involving team member.
As the employees are vital resource of the company they must be involved in order to accept
challenges and responsibilities. This will increase the more employee engagement and they are
more like to discuss the things and know each other opinions. It has been suggested that them let

them work together and make some kind of decisions in their own manner. A team leader should
interfere only if is urgent (Kundu, S. C., Mor, A. and Gahlawat, N., 2020). Another mechanisms
is insisting upon proper communication. Employees are always willing to know what is going in
the team and brings an effective communication between them as poor and ineffective
communication leads to misunderstandings and confusion. It is also suggested that there must be
flexible way in order to communicate. Written modes of communication should be promoted and
encouraged for better transparency.
P5. A stakeholder engagement and contribution can support positive employment relationships.
Stakeholder engagement can be referred as the process through which an organization
communicate and get to know stakeholders closely. In context to Unilever, by having
communication with them, a company can be able to know what they demand, when they want it
and how stakeholders are engaged with the company as well as how company's plan and action
will affects it objectives. Effective stakeholder's engagement helps to translate their needs into
company's goals and objectives. It also helps to generate the foundation of effective strategy
development. Stakeholder engagement is crucial to the success of any organization. They can
also be differ and vary from business to business. They can consists with employees,
shareholders, suppliers, customer, board of directors, business owners, regulatory agencies or
government agencies. Each one of them has a unique and different perspective which will results
in success of the organization (Prihandinisari, C., Rahman, A. and Hicks, J., 2020). In context to
Unilever, the various stakeholders of company plays different role in order to contribute and
engage in a positive way.
 Customer: Customers are the people who purchase products and services of a company.
They are like to spend their money on the basis of quality of product but also at a
reasonable prices. They are involved with business because of their quality in products.
In addition to respective company, they put their efforts consciously in order to meet
their customer's demand.
 Employees: Employees are the one who have direct stake in the organization. They
interact and deal directly with the customers, give support to the business operations and