Comprehensive Report: Employment Relations Legislation and Unions

This report delves into employment relations legislation, beginning with an introduction to the subject and its impact on employer-employee relationships. It differentiates between formal and psychological contracts, outlining their definitions, documentation requirements, and relevant legislation. The report then identifies and explains two key sources of employment relations legislation: statutory bodies and UK/EU institutions, emphasizing their roles and influence. It also reviews recent developments in individual rights, such as those related to smoking in public places and national minimum wages and flexible working hours. The study further explains the statutory trade union recognition and de-recognition processes, considering the reasons why an employer might or might not want to recognize a trade union, detailing the roles of the employee, union, and employer. Appendices provide further details on the contracts, legislation, and developments discussed, making it a comprehensive overview of employment relations.

EMPLOYMENT RELATIONS LEGISLATION

Table of Contents
Introduction......................................................................................................................................1
Assessment Activity 2......................................................................................................................1
2.1 State difference between the formal contract of employment and the psychological
contract...................................................................................................................................1
2.2 Identify and explain two sources of employment relations legislation ...........................2
2.3 Review two recent development in individual rights ......................................................2
2.4 Explain the statutory trade union recognition and de-recognition processes. Consider why
an employer may or may not want to recognize a trade union ..............................................3
Conclusion ......................................................................................................................................5
References........................................................................................................................................6
APPENDIX 1...................................................................................................................................8
2.1 Defines and determines pros and cons in formal and psychological contracts................8
APPENDIX 2.................................................................................................................................10
2.2 UK and EU legislation....................................................................................................10
APPENDIX 3.................................................................................................................................12
2.3 Recent development in UK............................................................................................12
APPENDIX 4.................................................................................................................................13
2.4 statutory trade union recognition and de-recognition processes. Consider why an employer
may or may not want to recognize a trade union .................................................................13

Introduction
Employment relations legislation has several reforms and norms which aids in
developing suitable relationships among employer and employees. In this context, the present
study has been emphasizing on formal and psychological contract along with this impact on
organizational performance (Giuliano, Kampelmann and Rycx, 2017). Furthermore, discussion is
also included regarding sources of employment legislation development of individual. Moreover,
two recent development also discussed that are related to individual rights. In addition to this, it
is also made on recognition and de-recognition for a trade union.
Assessment Activity 2
2.1 State difference between the formal contract of employment and the psychological contract
There are many differences taken in formal and psychological contracts that are as follows:
Basis Formal contract Psychological contract
Definition In a formal contract of
employment, parties singed
under seal. In this way, kind of
contract has been used in
labour law that included
attributes' rights and
responsibilities among parties
(Marchington, Wilkinson and
Kynighou, 2016).
However, psychological
contract is not comes under the
seal. In this way, deep and
varied concept has been
determined that interpret
theoretical studies.
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Documentation There are various written
documents requires in which
terms and conditions are
explained regarding employee.
It need to be includes detail
things regarding employee
such as pay, holiday and
working hours, etc.
In psychological contract of
employment, there is no
written documents requires so
that there are several adverse
personal circumstances affect
to productivity (Giuliano,
Kampelmann and Rycx, 2017).
There are different legislation and examples applied on formal contract that are as
follows:
Employment right act 1996: According to this act, UK parliament determines several
relevant information that made for initial employment particulars. It includes payment, right of
statement, procedures and pensions that need to be given by organisation to their employees.
Further, it also includes Sunday working for shop, guarantee payments and many other rights of
each workers that are works at workplace.
Further, in psychological contract has been consolidated employment relationship in the
following manner:
Trust: Psychological contract has been made without any legal duty therefore, it requires
trust which employees made towards the organisation. Hence, it assists to accomplish more
profits and revenue at workplace.
Loyalty: Further, loyalty is another important element that bring to make effective results
with responding towards business goals and objectives. In this way, organisation can ascertain
effective results through carrying loyalty of their employees.
Respect: Another important element need to be included is respect of each member at
workplace. This is because, if the enterprise not respecting their employees it increase turnover
of employees.
2.2 Identify and explain two sources of employment relations legislation
In order to perform functions and operations, there are employment relation legislation
play a vital role in success of every business. Individual employment relations is relationship that
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exist among employee and its employer. With the help of legal regulation, relationship has been
shaped that create outcomes of social partner negotiations with terms and conditions. Further,
individual employment relations is demonstrates as core interest of EU with inception to create
labour market for all employees such as self-employed (Marchington, Wilkinson and Kynighou,
2016). In this way, rights to free movement and social security has been given that assist to
maintain employee relations.
Employment relations are very important aspect which need to be focus on work and also
covered extensively within European Working conditions survey with taking other research on
particular topic (Klyver, Nielsen and Evald, 2013). Following are two different sources assist to
identified employment relation legislation:
Statutory bodies: In order to implement outcomes and results, there are different types of
employment relations legislation can be implemented at workplace. It assists to promote
effective results and outcomes. In this aspect, rules and regulations are ascertained that develops
provision for Employment Relations Act 1999. It creates effect through government that provide
new legislation for recognise collective bargaining purposes. Statutory procedures used to
respect of employers for around 21 employees (Schur, Kruse and Blanck, 2013). In a union must
be shows that there are 10% membership proposed bargaining unit that majority of workers
likely to favour recognition.
UK and EU institutions: EU system assist to work together that pursue for common
goals and objectives. It assists to bring together national and EU institutions within a system that
partially designed for enhance time. EU institutions are created through government of national
programs to accomplish goals. Check and balance built into the system that prevent single body
for impose preferences.
Role of parliament: Parliament perceive important role to work on challenges through
making certain changes in law. In this way, government spending and taxation to work in
effective manner at workplace.
Court system: Another main relationship has been made through ascertain court system
within the enterprise. In this aspect, parliament represent themselves in court with all such cases
and held with house of lords.
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EU set directives: A directive is a legal act of EU that required member states to
accomplish results without dictating means of achieve the results. It can be distinguish from the
regulations that are self-executing and not required to implement measures.
Working time directives: This law is also known as working time directives or working
time regulation as well. In this aspect, business need to give option to their employees either use
48 hours week or 8 hours in a day.
Domestic law: In UK there are three legal systems in which each applies in particular
geographical areas. These three systems diverge in different rules which apply across the UK
market. UK has not single system because it creates political union of previous independent
countries.
2.3 Review two recent development in individual rights
In previous year, newly consolidated committee considered under title of individual
rights. In this year, committee has been chosen in two different sectors to address different facets
of the law. It includes, the rights of smokers and section 1983 claims of malicious prosecution. In
this way, both legislative and judicial efforts have been made that assist to control smoking in
public places. Current conflict between smokers and non smokers also take within the market.
However, non smokers argues that there is no legal right to make smoke free environment.
Medical studies indicates that non smokers exposed in health risks (Marchington, Wilkinson and
Kynighou, 2016).
Further, human right development has been demonstrates as secretary that assist to stop
discrimination. These encourage to women and men that strive to make reality of human right
everywhere and anywhere. This encourages to women to participate in business activities that
assist to perform functions and operations. It referred to define rights of people for sexual
orientation. There are various issues take place that are related to identify advocacy for issues in
context of human rights (Pfau-Effinger, 2017). Decision are made against the recent trend that
more expanded liability to state impact of situations to legitimate governmental efforts to deal
with potentially violent person in a society.
In addition to this, impact of employment legislation also conducted with employment
relations that are widely studied. There has been relatively little attention that create effects on
human resources professionals. There are various strategies has been implemented which assist
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to promote professional status that impact on human resource (Klyver, Nielsen and Evald, 2013).
In this way human rights are also working with practices that found in mitigating the risk
element as professional manner. On the second aspect, strategic decision has been found
automatically to unknown and known strengthening.
National minimum wages: National minimum wage rate determines very important concept that
assists to create several benefits to employees. In this aspect, every business need to provide
minimum wages to their workers in term of living standards. These rates are changed in April
2017.
Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2017 £7.50 £7.05 £5.60 £4.05 £3.50
Flexible working hours: Flexible working hours are determines important concept in which
people are working in significant manner. In this way, all employees have legal rights to request
for their flexible working hours. Therefore, they can make their work according to convenience
of personal life in business environment. It can be done through different ways such as job
sharing, working from home, part time, etc.
2.4 Explain the statutory trade union recognition and de-recognition processes. Consider why an
employer may or may not want to recognize a trade union
When union accomplish recognition through statutory procedures, certain guidelines need
to be followed for to make de-recognised. Beside this, after 3 years of recognition, statutory de-
recognition has been granted (Wajcman, 2013). There are mainly three types of main grounds
take place for de recognition that are as follows:
 Employee: Taken with employers that are associated.
 Application by the employer or manager to work for support and bargaining arrangement
to create effective results.
 Union membership is also fallen below the 50%.
5

New statutory procedure come up in 6 June 2000 that effect in the UK from which trade
unions can seek to recognise from employers and collective bargaining purposes. This features
outline main elements of legislations that discussed and impact as well (Giuliano, Kampelmann
and Rycx, 2017). Statutory trade union recognised for provision that made for employment
relations Act 1999. It could be brought with effect of government in June, 6th 2000. New
legislation provides recognition that claim for recognition and collective bargaining purposes.
The union also refers to develop and resolves bilaterally with the employer concerned in CAC
for determination. CAC statutory body organised tripartite basis which develop with judge of
high court and number of deputy chairs academics or lawyers. In this aspect, two groups of
members has been shown with experience as employer and workers representatives (Kirton and
Greene, 2015).
Role of CAC is determines scope that are included in bargaining unit and it is also
declared union that could be recognised on the basis of majority of worker that are concerned
with members of the union that qualified to make support and concerned to each category that
convened to deal with application (De Cuyper and Isaksson, 2017).
Role of CAC
CAC have role to encourage fair and efficient arrangement at workplace through resolve
collective disputes in England, Scotland and Wales. They have statutory power and 47 members
are working in it including chairman, 9 deputy chairman and 15 experienced members as
representatives of employers. There are different elements in which, organisation perform their
functions and operations in successful manner.
 Make request to employer
 Application acceptance process
 Agreeing and determining bargaining unit
Key point of the new legislation
Statutory procedure only used for respect towards employers with minimum 21 persons.
In order to make an application to CAC, union must show that at least 10% membership
proposed bargaining unit that likely to favour recognition. Jointly applications are also
categorised two or more unions that are permissible to show union will cooperate effectively.
Employer also accomplish wishes that conduct for single-table bargaining. In addition to this,
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CAC is also considered from process that completing the applications (Schur, Kruse and Blanck,
2013).
Disagreement among employers and union determines scope that proposed bargaining
unit for covers CAC. It taking range of factors in account which subject to overriding need and
also compatible with effective management. After this, CAC also decide that whether ballot is
needed. When it is satisfied, majority of workers belongs to bargaining that make effective union
with application. It also includes issue of a declaration of recognition without any ballot unless.
It considered holding of ballot that would be interests of good industrial relations that make
significant number of union members (Larsen and Navrbjerg, 2015).
If the majority of workers are voting around 40% of those eligible to vote and support,
union is considered issue that declare recognised as entitled to conduct collective bargaining on
the behalf of bargaining unit.
However, trade union can firstly seek voluntary recognition with employers. In respect to
accomplish it, union must demonstrate request in order to find out union and bargaining unit.
Employers must be employ around 21 workers (Manfredi, 2016). They are not want to recognize
trade union due to following reasons:
 Accept the request.
 Rejection of request and advise not willing to negotiate.
 Reject the request but advise to willingly negotiate.
CAC determining trade union recognition
In respect to determines process availability, independent trade union need to recognise
CAC for recognition and meet with qualifying conditions set out in the application form. There
are several numbers of qualifying condition set included in application form which need to be
accomplish in systematic way. Under the statutory recognition process, employer no need to
recognise voluntarily. Trade union can apply industrial court with legal right that recognised by
an employer for collective bargaining over pay hours and holidays.
CAC determines trade union de recognition
There are three main ground for de recognition such as:
 Taken with associated employers no longer employ from 21
 Application by the employer and workers believed that there is no majority support exist
for bargaining
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Conclusion
From the above report, it can be articulated that employment relation legislation play a
vital role in success of businesses. In this context, report summarized about differences in formal
and psychological employment contracts because they both are playing vital role in success of
every business. Furthermore, it is concluded about impact of contracts on organisational
performances. Therefore, it has been stated that it is very important to develop effective results
and performances to enhance productivity, maintain loyalty, opportunities to enhance business
and many more.
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References
Books and Journals
Benach, J., Vives, A. and Muntaner, C., 2014. Precarious employment: understanding an
emerging social determinant of health. Annual review of public health. 35. pp.229-253.
Benassi, C. and Dorigatti, L., 2015. Straight to the core—Explaining union responses to the
casualization of work: The IG Metall campaign for agency workers. British Journal of
Industrial Relations. 53(3). pp.533-555.
De Cuyper, N. and Isaksson, K., 2017. Employment contracts and well-being among European
workers. Routledge.
Giuliano, R., Kampelmann, S. and Rycx, F., 2017. Short notice, big difference? The effect of
temporary employment on firm competitiveness across sectors. British Journal of
Industrial Relations. 55(2). pp.421-449.
Kirton, G. and Greene, A. M., 2015. The dynamics of managing diversity: A critical approach.
Routledge.
Klyver, K., Nielsen, S. L. and Evald, M. R., 2013. Women's self-employment: An act of
institutional (dis) integration? A multilevel, cross-country study. Journal of Business
Venturing. 28(4). pp.474-488.
Larsen, T. P. and Navrbjerg, S. E., 2015. The economic crisis: Testing employee relations.
Economic and Industrial Democracy. 36(2). pp.331-353.
Manfredi, S., 2016. 6W Equality and Diversity at Work under the Coalition. Employment
Relations Under Coalition Government: The UK Experience. 2010-2015. p.108.
Marchington, M., Wilkinson, A. and Kynighou, A., 2016. Human resource management at work.
Kogan Page Publishers.
Pfau-Effinger, B., 2017. Development of culture, welfare states and women's employment in
Europe. Routledge.
Schur, L., Kruse, D. and Blanck, P., 2013. People with disabilities: Sidelined or mainstreamed?.
Cambridge University Press.
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Silvia, S. J., 2013. Holding the shop together: German industrial relations in the postwar era.
Cornell University Press.
Wajcman, J., 2013. Managing like a man: Women and men in corporate management. John
Wiley & Sons.
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APPENDIX 1
2.1 Defines and determines pros and cons in formal and psychological contracts
Formal contract is written agreement in which parties signed with authority seal. In this
aspect, seal can be demonstrates with any impression that are made with document of parties
contract. On the other hand, psychological business contract is determines as agreement of two
parties without any documentation or agency, etc. This psychological contract is deep and wide
varied concept that assist to interpret theoretical study. It creates relationship between employer
and employee that are specially concern with mutual expectations of input and output.
Advantages and disadvantages of formal contract
Basis Formal contract Psychological contract
Advantages Formal contract has
advantages to reduce risk and
liabilities because company
can sue for any negative
impact. Through making sure
that all parties can add terms
and conditions for particular
agreement everyone can sign
on a contract attesting.
On the other hand, in informal
contract there is simple
agreement take place that is
pros to create several benefits.
Main advantage of this
agreement is flexibility and
informality.
Disadvantage Disadvantage of this contract
is more time and money
required to reduce risk. To
construct an airtight, the
organisation has employ
services for draft the contract.
Focusing on contract also take
time from other activities that
assist to grow outcomes of the
business.
With the help of arrangement,
employer can perspective for
two parties. However, there is
no documentation take place so
that it create impact on
performances and outcomes of
the business results.
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Impact on performances This type of contract impact
positively on employee
performances that assist to
enhance productivity of the
company.
Whereas, these contracts not
impact positively because,
there are not any legal aspects
occur.
Example For example, government
contracts, cooperation contract
and greater authority contracts.
For instance, leases, sales
contract and employment
contract.
Basis Formal contract Psychological contract
Parties In formal contract of
employment is take place
between employee and
employer that assist to make
positive relationship among
them.
On the other hand, in this
aspect relationship specifically
concern with mutual
expectation of input and
outcomes.
Benefits Formal employment contract
covers job responsibilities,
salary, holidays, expenses and
allowance, etc.
Beside this, in this aspect
employment create benefits
orally for enhance salary. In
addition to this, the contract is
also fulfilled expectations of
employees to make
sustainability.
Legal entity In this type of contract, there is
legal entity requires.
In this way, legal entity does
not require.
In order to perform functions and operations with contract, there are several impacts create on
organisational performances. They are as follows:
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 Enhance business performances: With the help of formal and psychological
employment contract, employees are motivated to enhance effective relationship.
Therefore, it assists to increase profitability and performances in positive aspect. It
creates positive impact on the organisation results for developing productivity and
profitability (Klyver, Nielsen and Evald, 2013). Create positive impact on functions and operations: There are various obligations also
followed between employer and employee so that it would be beneficial to attain growth
and overall functions at workplace. When employees are working extra and they get more
remuneration, it insists them to develop results of the organisation (Schur, Kruse and
Blanck, 2013).
Maintain loyalty of employees: Contracts also create better relations with employees.
Therefore, it assists to develop results in successful manner. Through concentrate on employees
performances, employer can provide them various benefits such as incentives, promotion, bonus,
etc. Therefore, it creates loyalty between them to enhance positive aspects at workplace.
Reduce turnover and enhance sustainability: In order to reduce turnover, employer need
to make contract through they will easily increase sustainability at workplace. In this way,
employees are encourages towards the business operations that assist to make profitability
through increase sustainability. It also makes sure that at workplace of business environment,
there is no exploitation and discrimination take place (Giuliano, Kampelmann and Rycx, 2017).
APPENDIX 2
2.2 UK and EU legislation
The most important example of legislation in UK legislation would be determines in the
following manner:
Employment relation act 1999: Employment relation act 1999 is determines as the act of
parliament of the UK. This act is made for demonstrate significant amendments regarding labour
law for trade union and labour relation act 1992.
Employees right act 1996: This act is frame to provide proper rights to each employee
that are helpful to proper work and positive impact on them. This act is consolidated with
enactments that are related to UK parliament and passed
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Regulation that are come into force in December 1999 that determines statutory parental
leave entitlements for UK workers. There are several points highlighted as key point that are
derived from EU. They are as follows:
Parental leave: This regulation is determines for working parents in UK. First time
statutory right take place for 13 weeks unpaid leave for almost 5 years of particular child. Parents
adopts child that entitles for same amount of leave over for the five years.
Maternity rights: Regulations increases that are ordinary maternity leave from 14 to 18
weeks. It also reduces qualifying period for additional maternity leave within the two to one
year. Regulation also simplify procedures to give notice for taking maternity leave. As per return
to work, it also makes clear contracts of employment for continue maternity leave.
Further, EU legislation are also applicable in the following manner:
Regulations: Regulations are directly applicable within the EU member that states
immediately to enforce law. Regulation are in way of equivalent to act of the parliament that
create most powerful forms of European union law. When regulation comes into the force,
national laws dealing with same sense of subject matter.
Directives: Directives are bind but it is not directly applicable. Thus, it is required for
member to implement them without any EU dictating that assist to accomplish results. Member
also states to make changes in law that referred as the transposition to implement the directives
correctly.
EU has determines several rules and regulations according to campaigned for a Brexit
vote. Outside the EU, regulations in a country really expensive which is disputed. There is no
doubt to create effective volume of directives and rules that is vast. After Brexit, UK has
advantages to move freely and seeking towards work. Free movement of labour is cherished to
EU rules that applies in Switzerland and Norway.
Statutory bodies:Disagreement among employers and union scope of the proposed
bargaining unit that determined through Central Arbitration Committee (CAC). With the help of
taking account, subject to overriding need to compatible with effective management. Provisions
are made for the CAC in collective bargaining and arrangement also shows that original
bargaining unit has no longer appropriate as the changes in results for organisation and structure.
Changes in activities determines as original bargaining unit (Benassi and Dorigatti, 2015).
14

UK and EU institutions:In this way, employment relations legislation carry to determine
exact nature that can be lead to maintains employee and employer relations. In addition to this,
UK institutions also determines for employment legislation that assist to meet with targets and
positive results (Silvia, 2013).
APPENDIX 3
2.3 Recent development in UK
Two employment rights legislation
Following are such legislation determines for employment right:
 Employment protection act 1975: This act is established to promote improvement in
industrial relations. This law is relating to the rights of workers, employers and trade
union, etc. Therefore, the organisation need to provide extension of jurisdiction of
employment tribunals. It generates positive impact to creates benefits of unemployment
to amend employment training.
Following are such recent development determines in UK:
 Zero hours in parliament: Zero hour contract is the main subject that demonstrate
casual contract and allows to the company to employ the staff without any guaranteeing
work. Employee work at that time when they are needed. Their payment based on
working hours so that it create positive impact on them to develop effective results within
the environment. Therefore, employees are positively impacted that assist to frame
effective results.
 Agency regulation: Agency regulation apply when they are supplying temporary agency
workers on hiring. This is main development in recent year because it determines
effective recruitment sector that assist to understand workers regulation. Therefore, main
aim is to hire agency workers to recruit favourable treatment on working conditions. This
create positive impact on the performances of employee and encourage them to develop
effective results.
Two employment rights legislation
Following are such legislation determines for employment right: Contract of employment act 1963: This act is determines in parliament of UK that
introduced for requirement of reasonable notice before any dismissal. Mainly it is made
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for written particular contract of employment, it is recognised with modern employment
protection statue. It creates positive impact on employees to develops effective results in
successful manner. Hence, they are giving notice for particular time period in which they
are working.
 Employment protection act 1975: This act is established to promote improvement in
industrial relations. This law is relating to the rights of workers, employers and trade
union, etc. Therefore, the organisation need to provide extension of jurisdiction of
employment tribunals. It generates positive impact to creates benefits of unemployment
to amend employment training.
APPENDIX 4
2.4 statutory trade union recognition and de-recognition processes. Consider why an employer
may or may not want to recognize a trade union
In the UK there are all businesses working with union. Main advantage to follow union is
developed positive legal rights within the collective labour relation areas. It recently emerged
political agenda for making documents discussion. However, it also indicates issues that are
receives greater degree of prominence to extent statutory recognition procedure. The
organisation want to recognise trade union for develop legal rights within the environment which
considered ethically. If the employer not want to carry union, they are considered unethical
elements for employees. In this aspect, following procedures has been taken for recognition and
de-recognition:
At the first sign of union organizing, management of the business decide to understand
necessary defeat in union. As per one corporate vice president, advancing preparation needed to
launch policy of resistance. It also makes decisions that deal to cope up become the long run
results. It is the best way for labour and management as well. At first aspect, union efforts are
identifying targets for making employee contacts with local union and also learn to organise
place of work. Campaign also starts with strategic importance that assist to look towards targets
employees. When company done their target, they have to move on determines interest so that
they can visit the company to find out interest of employees. At last, setting with organizing
committee assist to union representatives to assess leaders and established them for create
several benefits.
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