Professional Ethics Lecture Notes - RIPHAH International University PDF

Professional Ethics Lecture - 7 1 The Framework of Employee Relations Law and Changing Management Practices 2 Contents 1. Employee relations 2. Labor Law 3. Framework of collective labor law 4. Framework of individual employment...

Professional Ethics Lecture - 7 1 The Framework of Employee Relations Law and Changing Management Practices 2 Contents 1. Employee relations 2. Labor Law 3. Framework of collective labor law 4. Framework of individual employment law 5. Equal pay and gender discrimination 3 Employee Relations The most important part of any business is its people. No business can run effectively without them. But people don't work in a vacuum; they need to communicate and work with others to get their jobs done. Employers need to manage relationships in the workplace to keep the business functioning smoothly, avoid problems, and make sure employees are performing at their best. Happy employees are productive employees. Successful businesses know how to manage relationships to build lasting employee satisfaction. 4 Employee Relations The term 'employee relations' refers to a company's efforts to manage relationships between employers and employees. An organization with a good employee relations program provides fair and consistent treatment to all employees so they will be committed to their jobs and loyal to the company. Such programs also aim to prevent and resolve problems arising from situations at work. 5 A good employee relations program A good employee relations program is one that fosters open communication, fairness, and trust between employees and management. Key elements include: 1. Clear Communication: Open channels for feedback, concerns, and regular check-ins. 2. Conflict Resolution: Mechanisms for resolving disputes fairly and effectively. 3. Fair Policies: Consistent, transparent policies on performance, discipline, and opportunities. 4. Recognition: Programs that acknowledge and reward employee achievements. 5. Employee Well-being: Support for work-life balance and mental/physical health. 6. Development: Opportunities for career growth and skill development. 7. Leadership Support: Training for managers to be fair, approachable, and supportive. 8. Transparency and Trust: Regular updates and clear communication about company goals and changes. The goal is to create a positive, respectful work environment that supports employee engagement, retention, and overall well-being. 6 Employee Relations Employee relations are about the rules governing employment. Most of the time, it is the employer who decides the terms and conditions or rules of employment. These rules include anything from pay and normal working hours to health and safety rules. 7 Employee Relations In most industrial countries, such one-sided regulation of employment by management is not the only way of deciding and administering the rules governing employment. Employers have recognized trade unions for collective bargaining purposes. Managers negotiate with trade union officials in order to reach collective agreements about pay and other conditions of employment. 8 Employee Relations The applicability of the collective bargaining model of employee relations to software workers is very limited. Trade unions have made little impact on software workers, so terms and conditions are largely set by employers and managers. Limited forms of co-management, such as joint consultation with employee representatives, to some extent substitute for unions. 9 Labor law Apart from one-sided management decisions and collective bargaining, LAW is another way to make the rules that govern employment. Labor law is that part of the law that deals with individuals and legal persons in their capacity as employees or employers and is concerned with work and relationships arising from it. Labor law is concerned with both the collective and individual aspects of the employment relationship. 10 Labor law Labor Law Collective Individual Labor Law Labor Law 11 Collective labor law Collective labor law deals with collective industrial behavior and institutions for regulation of employee relations, such as trade unions and collective bargaining. It basically concerns the relationship between employer, employee, and trade unions. Collective labor law also includes the regulation of labor disputes, including strikes and lockouts. Trade Unions Trade unions are organized groups of workers who engage in collective bargaining with employers. Some countries require unions to follow procedures in pursuit of their goals. For example, some countries require that unions poll the membership to approve a strike. Laws may govern the circumstances and procedures under which unions are formed. They may guarantee the right to join a union or remain silent in this respect. Some legal codes allow unions to obligate their members, such as the requirement to comply with a majority decision in a strike vote. Workplace Participation A legally binding right for workers as a group to participate in workplace management is acknowledged in some form in most developed countries. In most EU member states (for example, Germany, Sweden, and France) the workforce has a right to elect directors on the board of large corporations. This is usually called "codetermination" and currently most countries allow for the election of one third of the board. Workplace Participation In Sweden, participation is regulated through the "Law on board representation". The law covers all private companies with 25 or more employees. In these companies, workers (usually through unions) have a right to appoint two board members and two substitutes. If the company has more than 1,000 employees, this rises to three members and three substitutes. Information and Consultation Workplace laws in many countries require that employers consult their workers on various issues. means that, in certain countries, laws exist that obligate employers to engage with and seek input from their employees before making decisions on specific workplace matters. This could include issues related to: -Changes in working conditions (e.g., shifts, hours, or workload), - Health and safety policies, - Organizational restructuring or layoffs, - Workplace policies (e.g., disciplinary measures, remote work policies), - Employment contracts or collective agreements. The consultation process ensures that employees' opinions or concerns are considered, and it aims to protect their rights, promote fairness, and encourage a collaborative work environment. In some cases, this consultation may involve trade unions or employee representatives. In short, these laws help create a two-way communication channel between employers and employees, fostering transparency and participation in decision-making processes that affect workers' lives. Individual Labor Law Individual employment law regulates the individual employment relationship as it arises from the contract of employment. Employment Terms The basic feature of labor law in almost every country is that the rights and obligations of the worker and the employer are mediated through a contract of employment between the two. Many contract terms and conditions are covered by legislation or common law. In the US for example, most state laws allow for employment to be "at will", meaning the employer can terminate an employee from a position for any reason, so long as the reason is not explicitly prohibited, and, conversely, an employee may quit at any time, for any reason (or for no reason), and is just required to give a prior notice. Employment Terms Another example of employment terms in many countries is the duty to provide written particulars of employment to an employee. This aims to allow the employee to know concretely what to expect and what is expected. It covers items including compensation, holidays and illness rights, notice in the event of dismissal, and job description. Minimum Wage Many authorities define the minimum amount that a worker can be paid per hour. Each country sets its own minimum wage laws and regulations, and while most industrialized countries has a minimum wage, many developing countries do not. Living Wage The living wage is higher than the minimum wage and is designed that a full-time worker would be able to support themselves and a small family at that wage. A living wage is the minimum income necessary for a worker to meet their basic needs. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living. Due to the flexible nature of the term 'needs', there is not one universally accepted measure of what a living wage is and as such it varies by location and household type. Hours The maximum number of hours worked per day or other time interval are set by law in many countries. Such laws also control whether workers who work longer hours must be paid additional compensation. Before the Industrial Revolution, the workday varied between 11 and 14 hours. With the growth of industrialism and the introduction of machinery, longer hours became far more common, reaching as high as 16 hours per day. Now a days an 8 hours working day is a standard in a large number of countries. Health and Safety Labor laws also involve safety concerning workers. Such laws deal with all aspects of health and safety in the workplace and have a strong focus on the primary prevention of hazards. Discrimination Such laws prohibited discrimination against employees as morally unacceptable and illegal, in particular racism or gender discrimination. Equal pay and Gender Discrimination Equal pay for equal work is the concept of labor rights that individuals in the same workplace be given equal pay. It is most used in the context of gender discrimination, in relation to the gender pay gap. Equal pay relates to the full range of payments and benefits, including basic pay, non-salary payments, bonuses and allowances. Some countries have moved faster than others in addressing the problem. Since President John F. Kennedy signed the Equal Pay Act of 1963, it has been illegal in the United States to pay men and women working in the same place different salaries for similar work. Equal pay and Gender Discrimination IT industry and women employees??? IT industry and women employees The IT industry has historically been male-dominated, and there have been many challenges for women employees, including equal pay and gender discrimination. According to a study by Glassdoor, women in tech earn only 71 cents for every dollar earned by men. Women have reported experiencing bias and discrimination in hiring, promotion, and training opportunities. They have also faced exclusion from important projects and decision- making processes. Studies have shown that women are more likely to leave the tech industry than men, often citing issues related to gender discrimination. 27 IT industry and women employees To address these issues, there have been efforts to increase diversity and inclusion in the IT industry. Many companies have implemented policies and programs aimed at recruiting, retaining, and advancing women in tech. Despite these efforts, progress has been slow, and there is still much work to be done to ensure equal pay and opportunities for women in the IT industry. Overall, companies, industry organizations, governments, and individuals all have a role to play in creating a more inclusive and equitable workplace for women in tech. 28 Summary of Labor Law The key difference between collective and individual labor law lies in the focus of their application: 1. Individual Labor Law: Governs the relationship between an individual employee and their employer. It deals with issues such as employment contracts, wages, working hours, job duties, and individual rights (e.g., dismissal, discrimination, and workplace conditions). 2. Collective Labor Law: Regulates the relationship between employers and groups of employees, typically represented by unions or other employee organizations. It focuses on collective bargaining, labor unions, collective agreements, and industrial actions (e.g., strikes, negotiations on wages, working conditions). In short, individual labor law focuses on the rights and obligations of individual workers, while collective labor law addresses the rights of groups of workers and their collective interests. 29 Questions? 30