Managing Employment Relations: An Analysis of OHF's Practices

This report analyzes the employment relations at Organic Health Foods (OHF), a UK retailer. It examines whether OHF's employment contract changes comply with current legislation, focusing on maternity leave, paternity leave, and pay during lockdown. The report assesses compliance with th...Read More

MANAGING EMPLOYMENT
RELATIONS
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Table of Contents
INTRODUCTION...........................................................................................................................2
Question 1........................................................................................................................................2
Whether changes comply with current employment legislation and its impact upon staffs. .2
Question 2........................................................................................................................................4
Whether OHF fulfil legal necessities in light of recent changes to NMW and existence of
dependent contractor IR 35 status..........................................................................................4
Question 3........................................................................................................................................5
Suggestion to whether Mr Khoo has any legal grounds for dismissing Dino........................5
Question 4........................................................................................................................................7
Human resource tactics and policies place to avoid worker dress code discrepancies..........7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Employment relations refer to organizational attempts and hard work to manage relations
or collaboration between employees and employers. In order to manage employee relationship
between them, company’s efforts a lot and use ranges of options, which are quite beneficial for
growth and success of a venture. The current assignment will be based on Organic Health Foods,
which is one of the best retailers in the United Kingdom. This study will base on four different
questions, question one will explain changes comply with current employment rule and its
impact on staff. Question two will define fulfilment of legal requirements in light of current
changes to national minimum wage. This report will explain suggestions need for chosen
company to legally complaint. Furthermore, question three it will describe dino’s legal
employment rights and will also clarify human resource policies and tactics place to avoid
workers dress code discrepancies and its reasons.
Question 1
Whether changes comply with current employment legislation and its impact upon staffs
Director of Organic Health Foods Peter Khoo has changed employment contracts
according to which he provide facilities to staff for example, cater only one month paid leave to
those who are on maternity leave. Not only this one he decided that paternity leave could only be
taken as yearly leave and no staff would be paid during lockdown. All these three modifications
are not complied with current employment legislation at all because it indicates unethical
practices conducted by Peter Khoo in context of his workers. According to employment law,
Webb V EMO Air Cargo (UK) Ltd (No2) 1994 C-32/93, employer would not conduct any
unethical or discriminate activity against a pregnant women just like above one. Accordant to
Maternity benefit Act, 1961, employees could take up to 52 weeks maternity leave without
taking too much stress in context of pay by employer (Buch, 2019). Statutory maternity pay is
paid to women workers for up to 39 weeks; they get 90% of their average weekly incomes for
starting 6 weeks.
Furthermore, the second term of Organic Health Foods director is also not comply with
employment legislation because according to current paternity and Adoption leave laws and
regulations 2002, eligible workers should take either one or two consecutive weeks leave within
56 days of a placement for adoption or child’s birth (Foubert, 2017). Accordant to this law, staff
should continuously employed for a duration of 26 weeks up to any day in qualifying days which
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is 15th week before expect time of child birth. Furthermore, those workers who provide written
notification to employer in regard to take paternity leave would be eligible for it in the United
Kingdom.
In context of third change, Covid 19 is one of the biggest pandemics in the world that
impact whole world. Because of it governments in all nations has take decision to apply
lockdown rule during which they decide that staff who work in a company would paid by his or
her employers. It is totally opposite to Peter Khoo staff contract as he decides to not pay anyone
during lockdown session.
Changes in staff contracts impact on workers-
As discussed above, directors of OHF Company has made there different changes within
staff or employment agreement, which would put negative impact on his 50 employees include
sales person, administrative staff, drivers, cashiers and cleaners as well. It will affect negatively
upon his or her performance and behaviour which will leads to decrease sales and productivity of
chosen firm.
Suggestions-
Organic Health Foods and its management should comply polices and rules within its
staff contracts which is quite beneficial for business, director and workers in term of increasing
productivity and performance as well as profitability even better than last few years or months.
Organization will assure legal compliances by providing maternity leaves according to above
discussion law and policies which enable its management to retain skilled and talented women’s
who are working for them and able to contributes in gaining competitive advantages (Atkinson,
2017). Furthermore, along with this one company must provide 15 days paternity leaves to
female workers. It should be provided to staffs who have less than two new born children. It
could avail for 15 days either earlier than or within 183 days from date of child birth. Organic
Health Foods and its directors must change terms and conditions of staff contracts again
according to pay laws which make them capable to reduce risk in form of high employee
turnover. In additional, firm should continue to pay salary of workers for hours he or she work
during lockdown, but for hours not performed, employer and government within UK would each
pay on third of its equal salary (COVID-19: Guidance for Employers in the UK, 2020). Company
and its administration should comply and follow guidance stated by local or national authority in
context of employers in nation. Firm must follow and respect the decision take by UK
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government according to that employers would pay wages to its staff who are unable to work due
to pandemic, it can consider as radical act that will be taken to protect local people jobs.
Question 2
Whether OHF fulfil legal necessities in light of recent changes to NMW and existence of
dependent contractor IR 35 status
IR 35 is shorthand for United Kingdom tax regulations that is created to determine
ventures and contractors which are avoiding paying right tax by working as disguised workers or
are engaging apprentices on a self employed basis to disguise fact employment status. It has
introduced in 2000, according to this law, individual must pay similar amount in form of tax as
an employee which means that worker is entitled to extra rights as an employee or applicant for
example, maternity pay, minimum wage and protection from discrimination at workplace. Inside
this legislation, worker needs to carry out of work and task that his or her organization is
contracted to do personally. In additional, individual could also act for own limited form, but
obtain employment benefits such as sick pay or paid leave; they are being paid on duration basis
and close supervision by leader in consumers ventures (Nikolakakis and et.al., 2020). IR34
consider as difficult legislation, but still it is beneficial in term of protecting people from work
place discrimination.
According to above contractor IR 34 status, new Pay structure of Organic Health Foods
have not fulfilled legal needs or requirements as it put negative impact on performance and
productive nature of workers as it leads to increase de-motivation at workplace. In context of
apprentices, they would obtain wage during training which is beneficial for both company and
workers as well in legal term such as build trustworthy relation between both of them and
increase productivity of firm even better.
Furthermore, minimum wages can be defined as minimum sum of remuneration that an
employer of a company needs to pay wage earners or employees for work he or she performed at
workplace during giver duration or time period which could not be reduced by collective contract
or an employment agreement (Freyssinet, 2020). According to national minimum wage rate,
organizations should pay £ 3.90 to apprentice, £4.35 to applicant age under 18, 6.45 people under
age of 18 to20 and 7.70 pay to people who are age 21 to 24. All these rates are different from
those that Organic Health Foods Company proposed as it can be said that it cannot fulfilled legal
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necessities because firm decided to pay national minimum wage to 16-17 years workers around
£2.50 which is different from actual wags rates.
All above discussion clearly define that company has not comply with IR35 legislation,
2020 and national minimum wages rates. In order to conduct ethical business practices and
comply with legal requirements, firm could follow further suggestions that are mention below-
 First thing that Organic Health Foods will adopt and consider is to pay minimum wage or
pay to its staff members without conducting any employee discrimination activity at
workplace, which is actually very important to do in term of increasing morale and
productivity of staff.
 Company and its management should make changes within developed pay structure
according to new terms and conditions within IR 35 that has been changed in April each
year. It must pay wage to aged 19 workers or over accordant to current rate that is 6.45.
 Furthermore, organization should consider applicant as entitled to appropriate minimum
wage who are part time worker, casual labourers for instance recruited for one day,
agency staff, seafarers, apprentices etc.
 Training is one of the most beneficial and useful approaches that a company could use to
enhance its productivity and improve performance level even better (Bruttel, 2019).
During this act, company must pay its workers minimum wage that covers under
employment rights and law. When employer within firm sends their workers on
compulsory training or development sessions and workshop, then applicants have right to
be paid for time spend during it. Organization should provide actual amount to its staff
without cutting salary of single day because it is again legal compliance and employment
legislations. Employees have right to obtain total amount even when he or she is taking
part in training programmes which is beneficial for business and themselves in term of
increasing productivity, performance, boost morale and allow to obtain desire outcomes
in form of high revenue than last months or years, while being operate in retail industry.
Question 3
Suggestion to whether Mr Khoo has any legal grounds for dismissing Dino
Gender Reassignment refer to person, whether workers or staff, who either have
undergone, undergoing gender reassignment or intend to undergo within it which is actually a
surgical & medical treatment of alter human body (Aizura, 2018). Some people do and take
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decision to go under this term which can consider as procedure or time duration during which
gender reassignment happen without or with medical intervention that take many years. Person
who conducts this act, would face several changes within his or her body and because of that
they feel illness and face other health issues which is not suitable for health. As individual during
this time needs rest and take proper precautions.
When an individual or employee feel ill while working in a company because of
undergoing gender reassignment procedure he or she have rights to take sick leave, which
include in employment rights and regulations. For example, Employment Rights Act 1996,
consolidate enactments relate to employee rights it covers areas such as redundancy payments,
zero hour contracts, unfair dismissal, Sunday working, protection of wages, flexible working,
suspension from work and terminations of employment (Montano, 2020). In additional, this act
covers workers rights in context of sick leaves, according to that employees can take leave when
he or she is not feeling well at workplace. It is his or her right that no one can steal as it goes
under illegal act or unethical practice which leads to create legal issues for employer who does
that. Furthermore, section 7 rule 28 define that workers who are facing health issues can take one
month medical leave for every 18 month of work rendered at half pays. Any employee cover
under this act could avail sick leave of not less than 18 of employment period at half wages.
Organic Health Foods Company and its director Peter Khoo is conducting unethical
activities and practices which would impact its overall business and operations in negative
manner. Director of chosen brand has refused Dino Nielson sick leave and pay application as he
not considered Dino’s health issues and mental status like depression which is a part of gender
reassignment. It put negative impact on physical and mental health of Dino as he needs rest and
proper medication which is not possible as Khoo has rejected him on grounds and said that
gender reassignment and depression are not considered as sick leave reasons. All these things or
acts could not over under above employment act as it can be analysed that Mr Peter Khoo has not
legal ground for conducting these practices, because of this decision he would face legal issues.
Dino’s can take legal action in context of Peter Khoo behaviour towards him which
covers under legal employment rights. He has right to claim sick leave and pay legally by taking
legal actions through court or other sources. Sick leave is a leave that an workers could avail in
case of illness or sickness of relative or self. Dino’s has right according to legal employment
rights in context of obtaining pay when he is out of work due to above discussion medical
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procedure. For instance, according to Apprentices Act 1961, any workers appointed as an
apprentice under act could benefit medical leave or sick leave for maximum duration of 15 days
in a ear and in case of accumulate leave up to minimum 40 days (Prasad and et.al., 2018).
Furthermore, along with these rights Dino’s also has legal employment rights in form of
claiming against unethical or discrimination from organic Health Foods director side. In
additional, he have right to not be discriminated against gender, sex, religion and other basis.
Question 4
Human resource tactics and policies place to avoid worker dress code discrepancies
As the above case suggest that there are no clear policies regarding dress code at workplace in
OHF and the employees are been discriminated based on their religious beliefs. It is very much
important to adhere to principles and HR policies of proper dress code as this brings
professionalism and uniformity within workplace. In OHF manager is discriminating among
employees based on their religion by allowing certain group to where their religious attire while
not allowing others. This is certainly not allowed at workplace to negotiate with one group of
people and restrict them to wear what they like or indent them to follow their religion. There is
certain type of HR policies regarding dress code within workplace which is required to be
followed by each employee. For the manager of OHF it is important that they are showing some
business justification for their workplace requirement to each group of employees. This is due to
the fact that each one can related themselves back to organisational goals and visions of
maintaining equality within company.
Other than this it is essential that manager is reasonably accommodating religious beliefs
so that sentiments of none is hurt. They can also ask each employee to avoid wearing religious
garb while they are on duty and wear it back after duty. It is the right of employee to wear their
religious beliefs while they are conducting their duty so the laws should be accommodating their
beliefs. There are no such laws which allow employee to wear their religious attire however they
can fight for their rights if they feel being discriminated from their company.
Recommendations-
Human resource department within Organic Health Foods Company would take part in
order to improve current performance and solve conflicts. For example, they must develop
strategy according to that people needs to wear a dress code while working at workplace which
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will design for female and male apprentice, without making any type of discrimination activity
by seniors or director of organization.
In the above case Stefani wants to join the trade union in order to negotiate her wearing a
cross at workplace so she is having right to do so. Trade unions are also having a duty to save the
right of employees who are seeking help from them. While it is worth noticing that OHF cannot
refuse their staff to join trade union as they are right to do so. In way of avoiding future conflicts
OHF should lay guidelines, principles and rules to overcome the problems of dress code. Each
employee and their religious sentiments should be included within that principle or guidelines.
HR must be preparing these strategies only after discussing with each group of employees
irrespective of religion they are following. One of primary reason for this is to maintain
uniformity within organisation and enable each person to become comfortable within company.
Furthermore, along with above suggestions company would adopt further one for
example, it must follow all legal employment rules and policies and treat everyone equally and
fairly without conducting any act that refer to discrimination.
CONCLUSION
By summing up above discussion, it has been concluded that by following principles,
rules and policies of Maternity benefit Act, 1961 and Paternity & Adoption leave regulations
2002; Organic Health Foods retailer has obtained several benefits in term of developed positive
brand image within retail industry and reached at top level. It has been identified that chose
company and its management by providing fair wages to its staff members has retained skilled
and knowledgeable workers for longer period of time, which is quite beneficial for company in
form of serving quality services to people on time and in effective manner. Furthermore, it has
been determined that by developing fair wage policies and offering facilities to workers
accordingly, firm has build up strong brand image in market where it have operated in sector.
Administration by taking right action and comply within employment legislations has
successfully overcome problem that is high employee turnover. Moreover, from above analysis it
has been summarized Peter Khoo by treating each worker equally and conducting ethical
business practise has avoid further conflict between management and employees.
Furthermore, from above discussion it has been analysed that by providing minimum
wages to staff during training session chosen retail company has gained benefits in form of
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protecting business from legal matters or issues that would impact negatively upon its market
image.
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REFERENCES
Book and Journals
Aizura, A.Z., 2018. Mobile subjects: Transnational imaginaries of gender reassignment. Duke
University Press.
Atkinson, J., 2017. Shared Parental Leave in the UK: can it advance gender equality by changing
fathers into co-parents?. Int'l JL Context. 13. p.356.
Bruttel, O., 2019. The effects of the new statutory minimum wage in Germany: a first assessment
of the evidence. Journal for Labour Market Research. 53(1). p.10.
Buch, N., 2019. Maternity Benefit Act, 2017-A Game Changer for Women's Economic
Empowerment. GNLU JL Dev. & Pol.. 9. p.138.
Foubert, P., 2017. Child Care Leave 2.0–Suggestions for the improvement of the EU Maternity
and Parental Leave Directives from a rights perspective. Maastricht Journal of European
and Comparative Law. 24(2). pp.245-263.
Freyssinet, J., 2020. Au Royaume-Uni, du National Minimum Wage au National Living
Wage. La Revue de l'Ires. (1). pp.67-101.
Montano, D., 2020. A psychosocial theory of sick leave put to the test in the European Working
Conditions Survey 2010–2015. International Archives of Occupational and
Environmental Health. 93(2). pp.229-242.
Nikolakakis, A and et.al., 2020. Fowler v HMRC (UK Supreme Court): Neither Fish nor Fowler:
Tax Treaty Implications of Domestic Deeming Rules.
Prasad, M.R and et.al., 2018. Nurturing Skill Development in Organized Sector—Chaos in
Institutional Set-up: Experiences from an Industrial Region in India. In Reflecting on
India’s Development (pp. 121-134). Springer, Singapore.
Online
COVID-19: Guidance for Employers in the UK. 2020. [Online]. Available Through: <
https://www.twobirds.com/en/news/articles/2020/uk/covid19-guidance-for-employers-in-
the-uk>
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