Terms and Conditions of Employment : An HRM Perspective

Terms and Conditions of Employment : An HRM Perspective

Written By: Dr.Gandham Sri Rama Krishna

Published in Journal of 6Ms Pride of Management, Narsapur, Medak District, Telanga State, December, 2010, Vol.1, PP. 26-28 

          Organisations have to build perspective in talent management and create an atmosphere to enable generative learning so that managers attract people that are the best in business. They must also share stories of how values are leveraged. At present every organization is trying to render their campus employee friendly. To this end opportunities are provided to employees that make for accelerated learning and such companies are sought after in today’s market.

Employment and  Employability :

          Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as: “A person in the service of another under any contract of hire, express or implied, oral or written where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed. In a commercial setting, the employer conceives of a productive activity, generally with the intention of generating a profit, and the employee contributes labour to the enterprise, usually in return for payment of wages. Employment also exists in the public, non-profit and household sectors. To the extent that employment or the economic equivalent is not universal, unemployment exists.

          Employability refers to a person’s capability of gaining initial employment, maintaining employment, and obtaining new employment if required. Employability is about being capable of getting and keeping fulfilling work. More comprehensively, employability is the capability to more self-sufficiently within the labour market to realize potential through sustainable employment. For individuals, employability depends on the knowledge, skills and abilities they possess, the way they use those assets and present them to employers, and the  context within which they seek work.   

            Employee means a person employed by the employer and is a staff member of the organization. An employee contributes labour and expertise to an Endeavour. Employees perform the discrete activity of economic production. Specifically, an employee is any person hired by an employer to do a specific “job”. In most modern economies, the term employee refers to a specific defined relationship between an individual and a corporation, which differs from those of customer, or client.

          In ancient days there have long working hours, bad working conditions, harassment, exploitation of the workers and hence in those circumstances, industrial laws, the ILO and Royal Commission on Labour focused its recommendations in the improvement of the working conditions, regulation of hours of work, prevention of unemployment, provision of an adequate living conditions, protection of workers against sickness, diseases and injury arising out of employment, protection of children, young persons and women etc. These provisions are achieved through proper implementation of labour legislations. Therefore the effective utilization of human resources through human resource development and improved working condition of employment its achieve organizational objectives.

The word “Terms and Conditions of Employment” is a comprehensive meaning. The word consist of two terms i.e., one is terms of employment another one is conditions of employment. It contains the working conditions of employment, wages/salaries and incentives, welfare amenities and so on.

• Terms of Employment: All human resource are utilized its improve their terms of employment and develop  their organizations. In present situation human being in expecting for more remuneration and job security. The over all employees have a physical and basic needs and social needs. In those needs are fulfilled to achieve by the employment. Therefore, they seek better employment. Where the terms of employment is good since the human resource are motivate to join in employment.
• Conditions of Employment:  It is covered under the working conditions, welfare, leave, benefits and so on. Conditions of employment that part of an employment that sets out of the duties, responsibilities, hours of work, salary, leave and other privileges to be enjoyed by persons employed.   

            Where the terms and conditions are better in employment, while human resources are stimulated to apply for the employment into sound organizations. In India, public sectors are provide more and more conditions of employment its comparison than private sector. Therefore, all human resources are stimulate to join into public sector employment. 

            Arrangements and conditions set out in a contract of employment. Also called terms and conditions of employment. General and special arrangements, provisions, requirements, rules, specifications  and standards that form an integral part of an agreement or contract.

          Terms and conditions are very important in work They give information to the person, who is applying to the job. It says important things about working hours, paternity and maternity leave, etc.  It is to ensure each person knows exactly what is required of each other, need to know things like holidays, sickness, maternity and retirement entitlements, hours of work and overtime, health and safety requirements, responsibility within the workplace and conduct in and out of work.               

Service Conditions:

          That part of employee welfare which concerns with the employees health, safety, comfort and efficiency in work setting is termed as working conditions. Thus, the term ‘working condition’ is described in the context of the health, safety, working environment, hours of work, and welfare of the employees in organizations and factories. Provision of sanitation, canteens, crèches, drinking water, rest shelter, and other similar facilities are included in it. As a part of employee welfare activities, working conditions include welfare amenities provided within the premises of an establishment.

            Whereas working conditions include the activities inside the factory establishments, service conditions refer to activities outside the establishment. Service conditions, thus, cover;

n  Social insurance measures like gratuity, pension and provident fund

n  Medical facilities including programmes for physical fitness and efficiency, family planning and child welfare.

n  Educational facilities including adult education.

n  Leave provisions.

n  Recreational facilities, including sports, cultural activities, library and reading room.

n  Holidays homes, and leave and travel facilities.    

n  Working cooperatives including consumer cooperative stores, fair price shops, and cooperative thrift and credit societies.

n  Programmes for the welfare of women, youth, and children, and

n  Transport to and from the place of work.

            The Factories Act, 1948, has provided mainly for working conditions of workers in factories. The Industrial Employment (Standing Orders) Act, 1946 deals with the terms and conditions of employment in various establishments and organizations. 

Appointment Letters:

The relationship of employer and employee arises out a contract, either express or implied. While inducting an employee, the employer should give a letter of appointment which should set out terms and conditions of employment including  designation of job, emoluments probation period, suspension and transfer from one branch/shift/section/department or from one place to another which the employer has or may have at any time it should also contain the stipulations for retirement and termination. 

It is always advisable to put an employee on probation for a specified period which should be stated in the letter of appointment with the condition that the employee will continue to be on probation till confirmed in writing and also during the initial or extended period of probation the services can be terminated with or without notice. The necessity of importance of an appointment letter needs to be emphasized since in the absence of a specific stipulation in the appointment letter, an employee cannot be transferred from one place to another and also an employee cannot be retired as long as he is fit to perform his duties.      

Collective bargaining is a process of voluntary negotiation between employers and trade unions aimed at a reaching agreements which regulate working conditions. Collective agreements usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms and right to participate in workplace or company affairs. In major organizations the terms and conditions are fixed through the process of negotiation between the employers and the representatives of employees. Hence the collective bargaining will play a vital role in motivating the employees and to have a good participative role for smooth functioning of organizations. 

Reference:

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