CIPD Course-Employee Relations - UK based system Essay

CIPD Course-Employee Relations - UK based system - Essay Example It is important that the organizational policies relating to aspects such as recruitment, selection, training, advancement, and disciplinary action, be in line with the relevant legislation such as the Equality Act 2010, the Employment Rights Act 1996, the Disability Discrimination Act 1995, and the Health and Safety at Work Act 1974. Economic factors such as inflation, unemployment, economic growth and taxation affect employment relationship (Aswathappa, 2005). When the economy experiences growth, there are better prospects for business and employment. As a result, employers are eager to attract qualified and skilled employees by offering them attractive remuneration and benefits (Aswathappa, 2005). On the other hand, during a recession, organizations consider redundancies and layoffs more frequently in order to reduce their costs and remain competitive. This may also result in downward revision of employees’ pay packages. Social factors such as unemployment, immigration and changing societal trends also affect the employment relationship (CIPD, 2013). High levels of unemployment result in low wages offered and few benefits, if any, as the unemployed have no other alternative. Rising immigration levels result in low-skilled jobs being taken by foreign workers, who can be paid lower wages than British workers. Trends such as dual-income households and even single-parent households mean that employers have to accommodate concern for the personal obligations of employees in the workplace. Worker, employee, and self-employed are three different types of employment status in the UK. According to the legal definition, an employee is an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment. A worker is defined as â€Å"an individual who works under (a) a contract of employment or (b) any other contract whereby the individual undertakes to do or perform