Background Information
Employee Relationship Management (ERM) is considered as one of the specific functions of Human Resource Management (HRM). Effective ERM helps any business organisation to minimise absenteeism and improve employee engagement in respective fields of work. At the same time, maintaining a healthy relationship at the workplace helps to develop an effective collaborative team where employees can show respect to others and commitment to accomplishing predefined organisational goals efficiently. The given case scenario of Organic Health Foods (OHF) is found to witness several employee relationship issues that negatively influence upon their organisational performance as well. Thus, the following report aims to provide a brief evaluation of the root causes behind generation of employment-related issues at the mentioned organisation. Throughout illustration is going to be made by considering suitable legislation and employment regulation. Along with this, recommendations for resolving the existing issues will also be underlined in the following sections briefly.
The case study revealed that OHF is considered as a retail organisation located in Covent Garden with 50 staff, including cashiers, salespersons, drivers, cleaners, and administrative staff. It is identified that Zak Tan, the Director of OHF has made various types of changes in the employment contract without informing their staff members. Along with this, Zak Tak removed all “Parental Statutory Rights” such as maternity and paternity leaves. Along with this, any leaves that employees will take will be deducted from the respective annual leave (as per the case study). The activities performed by Zak Tan signify a breach of the employment contract that negatively impacts upon maintaining a positive employee relationship.
Considering the first case, it can be mentioned that Zak Tan violates the regulations and guidelines mentioned under the Employment Rights Act 1996. The key reason behind this statement is that under section 4(1), in case any kind of change is required by the section 1 to 3 to be considered or referred to the statement under section 1, the employer must provide a written statement to the employee that includes the reason for changes. Along with this, those changes need to be mutually agreed upon to maintain a positive attitude among the employees.
On the other hand, under Section 47C(1), of ERA, an employee has the authority not to be a detriment by any type of legislation or any kind of deliberate failure in relation to the act by respective employees performed for a prescribed reason. Along with this, under Section 47C (2) (b), employees have the right to take additional maternity leave (ILO, 2022). Under section 72 of ERA, it is clearly mentioned that employers shall not permit employees who are satisfied with the conditions to work during the compulsory maternity leave.
It is identified that employment relationships play a significant role for any business entity in terms of maintaining a suitable work environment and improving overall organisational performance. As mentioned by Panteli et al. (2020), in most of the cases, it is identified that managers or leaders fail to inform their respective staff members about organisational changes or specific decisions that managers had made. This negatively influenced upon employee performance and led to the occurrence of employee turnover issues.
Violation of Employment Contract and Legislation
The case of British Airways Plc v Starmer underlines that British Airways had discriminated against Mrs. Starmer by refusing her permission to work on 50% of the contracts she had responsibilities for childcare (Croner-i, 2022).
In Hardman v Mallon Orchard Lodge Nursing Home underlines the violation of maternity rights and gender discrimination. The case claimed that according to the Employment Appeal Tribunal rules, failure to undertake any kind of risk assessment with respect to the pregnant woman is considered to be a discriminatory practice based on the pregnancy as well as automatically discriminatory of gender (Horten, 2021). Along with this, in the case Brown v Rentokil Ltd, the European Court of Justice (ECJ) verdicts that within an organisation where female worker is being dismissed for her employment on the basis of her absence during pregnancy can be considered as direct discrimination against the gender discrimination grounds as this type of activities only impact on women.
In the context of the above discussion, it is identified that employers are responsible to build effective relationships with their respective employees by developing suitable work arrangements. Duan et al. (2021) mentioned that managers, directors, or leaders are required to work collaboratively with their team members to understand their perspectives and needs in accordance with which business decisions require to be made. However, in the case of OHF, it is identified that instead of analysing the consequences of drastic or sudden changes in existing leave policies, Zak Tan made unethical changes without even notifying their team members.
As per the Employment Rights Act 1996, Zak Tan has no right to make the identified changes that violate the mentioned legislation and guidelines (ILO, 2022).
Considering the mentioned case evidence, it can be recommended that Zak Tan needs to analyse the adverse consequences of the decision that he made regarding the leave policy. Along with this, organisations are required to provide maternity leave to the required staff members as per the mentioned employment contract (Armstrong, 2019. Thus, Zak Tan must ensure that the Maternity Leave policy is accessible to the required staff members.
The case study revealed that OHF refused to adhere to and comply with the legislation and guidelines mentioned under the National Minimum Wages (NMW). Employers are required to pay a minimum wage of £9.50to the employees under the current legislation of NMW. However, in the context of the case study, Zak Tan offers only £8, which is found to be below the NMW rate and this practice can be referred to as unlawful. Along with this, it is identified that Zak Tan was only promoting the white males to the managerial position by terminating staff members who are above 60 years by mentioning that they are too old for taking responsibilities. The activities of Zak Tan are unethical and he violated the NMW as well as Employment Rights Act of 1996
According to the NMW Act 1998, a minimum amount needs to be paid to the workers per hour. Along with this, it is the legal requirement for employers to provide workers with NMW (Legislation, 2022). However, Zak Tan failed to adhere to this legislation and violated the act that in turn leads to the generation of employment-related issues. Under Section 104A of ERA, it is clearly mentioned that an employee who fails to obtain the NMW, has the right to take action based on the relevant reason. Along with this, Section 9 of the Equality Act 2010 highlights employees being from race discrimination in the workplace (Legislation, 2022). Section 11 of the Equality Act 2010 underlines employees must not be discriminated against based on their gender and employees have the right to take action in case such kind of situation arises at the workplace.
Importance of Effective Employee Relationships
The case of HRMC Vs Iceland 2019 reflects that Iceland claimed HRMC violated the NMW by penalising employees unnecessarily. Along with this, it is identified that Iceland could witness a bill of £21m regarding the underpaid wages as it violates the minimum wages regulations by introducing a salary sacrifice scheme (Churchill, 2019). Iceland also claimed that HMRC penalised its workers unfairly without offering any kind of workers benefits as well as protection.
In contrast, the case of Svetlana lohova Vs Sberbank highlights the decision that has been made by the Employment Tribunal regarding long-term gender discrimination in the workplace. Lokhova was given an amount of £3.2 million by the Sberbank due to the discrimination that Lokhova has witnessed at the workplace (Devereux, 2022). In addition to this, the Lokhova due to the aggravated damages received an additional amount of £15,000.
Considering the two mentioned case scenarios along with the case study of Zak, it can be clearly mentioned that Zak violated the employment contracts along with the employment legislation. Promoting only white males to managerial positions can be considered gender and race discrimination (Guenole, 2017). On the other hand, terminating staff over 60 years is referred to as age discrimination. In this regard, it can be mentioned that Zak violates statutory rights and this negatively affects organisational performance and the employment relationship.
In the context of the overall discussion, it is identified that Zak has been performing ethical and unlawful activities that minimise the chance of obtaining business success along with employee commitment (Milner, 2017). Thus, it can be mentioned that Zak needs to incorporate and follow the ACAS guidelines. Incorporation of the mentioned guidelines will help Zak to maintain fairness that will positively influence Zak to maintain suitable work culture. This would also minimise the chance of the occurrences of existing issues and percent Zak from witnessing any kind of obligation in the future. Zak is also required to incorporate an anti-discriminatory policy to prevent the occurrence of identified issues in the workplace in the future (Horten, 2021).
The case scenario illustrates the refusal of employer to pay required remittance to employees regarding gender reassignment (GR). Sam Johnson, the employee, suffered from GR and had to spend a lump sum amount for the treatment. Organisation provides sick pay to their employees as part of providing them with financial assistance but Zan Tan refused to pay the same since the mentioned person does not consider GR to be a legitimate illness for which payments can be granted (as per the case study). Refusing to pay sick leave invites legal prosecution that eventually reduces the organisation’s reputation that in turn caps down profitability. Rather than profitability, employee turnover would increase, deteriorating the entire enterprise’s performance in every aspect such as stakeholder’s involvement, CSR, and many others.
Section 7 of the Equality Act 2010 underlies employees are being protected from gender reassessment. However, Zak violated this legislation by treating Sam Johnson in an unlawful and unethical manner. GRA 2007 also underlines that employers have no right to treat employees in an unlawful manner that have gone through gender reassessment (Cabrelli, 2020).
Legal Cases of Discrimination
The case of De souza and Primark 2018 revealed that Ms. Alexandra De Souza who was appointed as a Retail Assistant at Primark was transgender. Her birth name was Alexander; however, she preferred to be called as Alexandra. Ms. De Souza after joining at the mentioned company had witnessed bullying and discrimination for her name as well as unfair treatment in relation to gender identity (Warner Goodman, 2018). In this regard, it can be mentioned that Primark violated the Equality Act 2010 and failed to provide a workplace culture where employees like De Souza can work effectively. On the other hand, another case study Bisson Vs Condor Ferries reveals similar violation of equality legislation that leads to workplace discrimination and impacts on organisational brand reputations.
The case revealed that Erin Bisson, a transgender woman had taken legal action against Condor Ferries because of the workplace discrimination she had witnessed after a member of the company mentioned her to utilise a disabled toilet. Ms. Bisson also claimed indirect discrimination against Condor Ferries because of the usage of the words rather than specific symbols (BBC, 2016). Along with this, a similar case scenario has also been identified in the case of Croft v Royal Mail Group plc and P v S and Cornwall County Council (ECJ) 1996 where employees are being discriminated against on the ground of gender reassignments (Phillips, 2018).
In the context of the above discussion, it can be mentioned that Zak Tan should not perceive GR as a disability as highlighted in the case of Condor Ferries. Along with this, ER cannot make any workplace discrimination and needs to recognise GR as an illness (Silva, 2021). Considering the identified case scenario, it can be mentioned that employers have no right to restrict employees from obtaining employment rights on the grounds of gender reassignments.
It can be recommended that Zak Tan must follow the ACAS guidelines and needs to incorporate the GR policies into their existing employee policy (Bennett et al. 2020). This will help to minimise the exits mining employment-related issues and maximise their chance to develop a suitable workplace culture where each of the employees can obtain equal opportunities and rights.
Staff turnover is found to be one of the key issues that most of the business entities have witnessed in today’s era due to the lack of employment relationship management. The provided case study revealed that the organisations OHF have witnessed a high staff turnover rate as the companies restrict their staff members to join Trade Union. Along with this, it is identified that the staff members have been informed that they cannot wear Jewellery or clothes that represents their religions (as per the case study). The company did not have any kind of dress code or training regarding the dress code and thus, it can be mentioned that the organisation violated the employment contract and legislation.
In the context of Trade Union 2016, it is identified that every worker has the right to incorporate fair workers practices. Along with this, according to this legislation, employees have the right to join and form a union and to participate in the programs of trade unions. On the other hand, Section 10 (1) of the Equality Act 2010 underlines, that religion reflects any type of religion as well as references to the religion associated with the lack of religion (Legislation, 2022). The mentioned section needs to be adhered to by any organisation to protect their employees from witnessing any kind of religious discrimination in the workplace. On the other hand, Section 1 F(19) of the Employment Right Act 1996 underlines employers’ requirement to provide proper training before making any changes in the workplace policies (Aylott, 2014). However, in the context of OHF, these legislations have been violated by making sudden unethical changes to the employment policies
Recommendations for Resolving Existing Issues
The case of Eweida Vs BA reveals that BA (British Airways) fails to maintain a balance between religious beliefs as well as the company’s policy to maintain a corporate image. Along with this, Eweida won the case as BA violated Eweida’s rights under Article 9 of the “European Convention on Human Rights” (BBC, 2013). Due to this reason, BA was required to pay an amount of 2,000 euros for the damage as well as 30,000 euros costs. On the other hand, a similar case has been observed for Chapline Vs NHS, however in this case NHS won the case on the ground of health and safety guidelines (BBC, 2013). Other than this, in the case of Onuoha vs Croydon NHS 2021 it is identified that Onuoha owns the case. In June 2020, Onuoha was terminated from her respective job as she refused to resolve her religion necklace. After cleaning the religious discrimination, Onuoha won the case as Onuoha requires to wear a surgical theatre gown that covers the necklace and does not violate the Health and safety guidelines (Teague, 2022).
From the given case scenario, it can be mentioned that ER has no right to refuse the EE staff members from joining the Trade Union. Along with this, in case the staff members are required to participate in the strike then they must inform EE’s and ERs need to take the time off in relation to the Annual leave (Williams, 2017).
In the context of the above discussion, it can be mentioned that OHF requires to adhere to the rule of ERA and EQA to minimise the existing workplace discrimination and need to incorporate anti-discriminatory policy to build effective workplace culture in the future (Bingham, 2016). In addition to this, the company requires to identify the root cause of their existing issues in accordance with which they should incorporate proactive measures to prevent the occurrence of identified issues in the future.
Conclusion
In the context of the overall discussion, it can be mentioned that business legislation plays a significant role in building a suitable work environment and improving performance. Employment relationship management can be considered as one of the key drivers behind business success. Failure in incorporating appropriate employment policies may hinder the chance for business entities to foster their growth and stability in the target market. In the context of a provided case study of OHF, it is identified that the director of the company has been incorporating unethical policies and practices. This negatively influences upon employee performance and their commitment to a receptive field of work. In the context of different identified legislations, it can be mentioned that OHF along with its directors required to take proactive measures to minimise the existing employment challenges. They need to incorporate anti-discriminatory policies and needs to follow the ERA and EQA guidelines to prevent the occurrence of exits mining issues in the future.
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