MODULE 5: Industry Relations

MODULE 5: Industry Relations

Industry relations refer to the interactions, collaborations, and relationships

between an organization and external stakeholders within its industry. These
stakeholders can include competitors, suppliers, customers, industry
associations, regulatory bodies, and other organizations operating within the
same sector. Effective industry relations are important for the success and
growth of an organization.

Employer and Employee

Employer and employee are two key parties in an employment relationship.
Here's an overview of their roles and responsibilities:
Employer:
 Employment Contracts: Employers are responsible for providing written
or verbal employment contracts that outline the terms and conditions of
employment, including job responsibilities, working hours,
compensation, benefits, and any applicable policies or procedures.
 Compensation and Benefits: Employers are responsible for providing fair
and timely compensation to employees for their work. This includes
wages, salaries, bonuses, incentives, and any agreed-upon benefits such
as health insurance, retirement plans, or paid time off.
 Workplace Policies and Procedures: Employers establish and enforce
workplace policies and procedures to ensure a productive and harmonious
work environment. This may include policies related to anti-
discrimination, harassment, health and safety, attendance, code of
conduct, and confidentiality.
 Training and Development: Employers should provide training and
development opportunities to enhance employees' skills and knowledge
related to their job roles. This may involve on-the-job training,
workshops, seminars, or educational programs.
 Performance Management: Employers are responsible for setting
performance expectations, providing feedback, conducting performance
evaluations, and recognizing and rewarding employees' achievements.

Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

They may also implement performance improvement plans or

disciplinary measures when necessary.
 Workplace Health and Safety: Employers have a legal obligation to
provide a safe and healthy work environment for employees. This
includes conducting risk assessments, implementing safety protocols,
providing necessary safety equipment and training, and addressing any
workplace hazards or concerns.
 Compliance with Employment Laws: Employers must comply with
relevant employment laws and regulations in their jurisdiction. This
includes laws related to minimum wage, overtime, working hours, non-
discrimination, leave entitlements, and employee rights.
 Employee Relations: Employers should maintain open lines of
communication with employees, address their concerns, and foster
positive employee relations. This may involve conducting regular team
meetings, promoting employee engagement, and providing opportunities
for feedback and input.
 Termination and Separation: Employers may have to make decisions
regarding employee termination or separation from the organization.
They should ensure that termination processes are fair, legal, and comply
with applicable laws and contractual obligations.
Employee:
 Job Performance: Employees are responsible for performing their job
duties to the best of their abilities and meeting the performance
expectations set by the employer. This includes being punctual, following
workplace policies, and delivering quality work.
 Compliance with Policies and Regulations: Employees must adhere to
workplace policies, procedures, and applicable laws and regulations.
They should maintain professional conduct, treat colleagues with respect,
and avoid engaging in any illegal or unethical activities.
 Communication and Collaboration: Employees should communicate
effectively with colleagues, supervisors, and other stakeholders. They
should contribute positively to the work environment, collaborate with
team members, and actively participate in team activities.
 Learning and Development: Employees should take advantage of training
and development opportunities provided by the employer to enhance their
Mohammed Natiq R
Asst. Prof. DBIMSCA
 MODULE 5: Industry Relations

skills and knowledge. They should proactively seek feedback and

continuously strive for improvement in their job performance.
 Health and Safety: Employees have a responsibility to follow safety
protocols, use provided safety equipment, and report any hazards or
concerns to their employer or designated safety personnel.
 Confidentiality and Data Protection: Employees should respect and
maintain the confidentiality of sensitive information, both of the
organization and its clients or customers. They should adhere to data
protection regulations and handle personal and company data with care.
 Ethical Conduct: Employees should act with integrity, honesty, and
professionalism in all aspects of their work. They should avoid conflicts
of interest, maintain loyalty to the organization, and comply with ethical
standards and professional codes of conduct.
 Reporting Concerns: Employees have the right to report concerns about
workplace issues, such as harassment, discrimination, safety hazards, or
unethical behavior. They should follow the appropriate reporting
channels established by the organization.

Differences between an Employer and an Employee.

Point of Employer Employee

Difference
Goal Maximize the productivity and To be able to financially support
efficiency. themselves and their families.
Cash flow Gives out the cash (salary) as a Receives the salary as an
deduction and receives the addition and in turn,
proceeds from the business. contributes to generating more
income for the employer.
Roles and Ensure safety, health and welfare Serve the employer faithfully,
responsibilities of the employees are well taken follow the rules, honor the
care of and provide a conducive contract of employment and
working environment. uphold loyalty and diligence in
service.
Level of authority Has authority over all the Has authority only over
employees. employees at lower levels.

Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

Rights of an Employee at Work Place

Employees have several rights at the workplace that are designed to protect their
interests and ensure fair treatment. While specific rights may vary depending on
the jurisdiction and applicable employment laws, here are some common rights
of employees:
 Right to a Safe and Healthy Work Environment: Employees have the
right to work in an environment that is free from hazards and risks to their
health and safety. Employers are responsible for providing a safe
workplace, conducting risk assessments, implementing safety protocols,
and providing necessary training and protective equipment.
 Right to Fair Compensation: Employees have the right to receive fair
compensation for their work. This includes receiving at least the
minimum wage, timely payment of wages, and any additional
compensation as per the employment contract or applicable laws.
 Right to Non-Discrimination and Equal Opportunity: Employees have the
right to be free from discrimination and harassment based on factors such
as race, gender, age, religion, disability, or any other protected
characteristic. Employers are required to provide equal opportunities for
employment, promotion, training, and other workplace benefits.
 Right to Freedom of Association: Employees have the right to join or
form trade unions, engage in collective bargaining, and participate in
lawful activities related to collective representation. Employers should
respect and not interfere with employees' exercise of these rights.
 Right to Privacy: Employees have a reasonable expectation of privacy in
certain aspects of their work and personal lives. Employers should respect
employees' privacy rights, particularly in areas such as personal
communications, personal belongings, and confidential information.
 Right to Accommodation: Employees with disabilities have the right to
reasonable accommodation to perform their job duties, as mandated by
laws such as the Americans with Disabilities Act (ADA) in the United
States. Employers are required to make reasonable adjustments to
accommodate employees' disabilities, unless it causes undue hardship.
 Right to Family and Medical Leave: Employees may have the right to
take unpaid leave for various reasons, such as the birth or adoption of a
Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

child, serious health conditions, or to care for a family member. Laws

such as the Family and Medical Leave Act (FMLA) in the United States
protect eligible employees' rights to take leave for qualifying reasons.
 Right to Whistle-blower Protection: Employees have the right to report
illegal or unethical practices in the workplace without fear of retaliation.
Whistle-blower protection laws safeguard employees from adverse
actions taken by employers in response to their reporting.
 Right to Fair Treatment and Due Process: Employees have the right to
fair treatment, including fair disciplinary procedures, performance
evaluations, and grievance mechanisms. Employers should provide clear
policies and procedures and ensure that employees have an opportunity to
present their side of the story and be heard.
 Right to Freedom of Speech: Employees have the right to express their
opinions and engage in protected speech regarding workplace conditions,
employment practices, and other matters of public concern, subject to
certain limitations and restrictions.

HR Policy- Meaning and Its Importance

HR policy refers to a set of guidelines, rules, and procedures developed and
implemented by an organization's human resources department. These policies
provide a framework for managing employees and governing various aspects of
the employment relationship. They cover a wide range of topics, including
recruitment, compensation, performance management, employee benefits,
workplace conduct, and compliance with legal requirements.
The importance of HR policies can be summarized as follows:
 Consistency and Fairness: HR policies ensure consistent and fair
treatment of employees by establishing clear guidelines and standards
that apply to all employees. They help avoid favouritism, bias, and
arbitrary decision-making by providing a standardized approach to
various HR processes and practices.
 Legal Compliance: HR policies help organizations comply with
applicable employment laws and regulations. They provide guidance on
equal employment opportunity, anti-discrimination, workplace safety,
privacy, and other legal requirements, reducing the risk of legal disputes
and penalties.
Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

 Communication and Transparency: HR policies serve as a means of

communication between the employer and employees. They outline the
organization's expectations, rules, and procedures, ensuring that
employees understand what is expected of them and what they can expect
from the organization. This promotes transparency and clarity in the
employment relationship.
 Employee Guidance and Direction: HR policies provide employees with
clear guidelines on how to navigate various aspects of their employment,
such as performance expectations, leave entitlements, disciplinary
procedures, and career development. This helps employees understand
their rights and responsibilities, reducing confusion and promoting a
positive work environment.
 Organizational Culture and Values: HR policies can reflect an
organization's culture, values, and strategic objectives. They can reinforce
desired behaviours, promote a respectful and inclusive work environment,
and align employee actions with the organization's mission and vision.
 Risk Management: HR policies help mitigate risks associated with
employee-related issues. By establishing procedures for conflict
resolution, complaint handling, disciplinary actions, and other HR
matters, policies provide a structured approach to addressing and
resolving workplace challenges, reducing the potential for legal disputes
and negative impacts on the organization.
 Employee Retention and Engagement: Well-designed HR policies that
address employee needs and concerns can contribute to higher levels of
employee satisfaction, engagement, and retention. When employees feel
that they are treated fairly and consistently, have access to appropriate
benefits and development opportunities, and understand the expectations
and procedures in the workplace, they are more likely to remain
committed and productive.

Legal Issues Related to HR in the Organization

There are several legal issues and considerations that organizations need to be
aware of and address in their HR practices. Here are some common legal issues
related to HR in organizations:

Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

 Employment Discrimination: Organizations must comply with laws that

prohibit discrimination based on protected characteristics such as race,
colour, religion, sex, national origin, age, disability, and genetic
information. It is important to ensure fair and equal treatment in all
aspects of employment, including recruitment, hiring, promotions,
compensation, and termination.
 Harassment and Hostile Work Environment: Organizations have a legal
obligation to prevent and address workplace harassment, including sexual
harassment. They must establish policies and procedures for reporting
and investigating complaints and take appropriate action to address such
issues.
 Wage and Hour Compliance: Organizations must comply with laws
related to minimum wage, overtime pay, working hours, and record-
keeping. They need to accurately classify employees as exempt or non-
exempt and ensure proper payment of wages and benefits.
 Family and Medical Leave: Organizations should comply with applicable
laws regarding family and medical leave, such as the Family and Medical
Leave Act (FMLA) in the United States. Eligible employees have the
right to take unpaid leave for specific family and medical reasons, and
employers must provide job protection during their leave.
 Workplace Health and Safety: Organizations have a legal responsibility
to provide a safe and healthy work environment for employees.
Compliance with occupational health and safety regulations, conducting
risk assessments, implementing safety protocols, and providing necessary
training and protective equipment are important considerations.
 Privacy and Data Protection: Organizations need to comply with laws and
regulations regarding the collection, use, storage, and protection of
employee data. This includes safeguarding personal and sensitive
information, obtaining consent where required, and ensuring data security
measures are in place.
 Employment Contracts and Agreements: Organizations must ensure that
employment contracts, agreements, and policies are legally sound and
enforceable. These documents should cover essential terms and
conditions of employment, including compensation, benefits, termination
procedures, and confidentiality clauses.

Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

 Employee Benefits and Retirement Plans: Organizations need to comply

with laws governing employee benefits, such as health insurance,
retirement plans, and other fringe benefits. Compliance with laws such as
the Employee Retirement Income Security Act (ERISA) is crucial to
ensure proper administration and protection of employee benefits.
 Immigration Compliance: Organizations that employ foreign workers
need to comply with immigration laws and regulations, including
verifying the eligibility of employees to work in the country and
maintaining proper documentation.
 Termination and Severance: Organizations must follow applicable laws
and regulations when terminating employees' employment. This includes
providing proper notice or severance pay, adhering to any contractual
obligations, and avoiding wrongful termination or unfair dismissal.

The Compensation Act, 1923

The Compensation Act, 1923, also known as the Workmen's Compensation Act,
1923, is an Indian legislation that provides for compensation to workers or their
dependents in case of injury or death arising out of and in the course of
employment. The Act aims to provide financial protection and support to
workers and their families in the event of work-related accidents or
occupational diseases.
Key features of the Compensation Act, 1923, include:
 Scope: The Act applies to employees engaged in various industries, such
as factories, mines, plantations, construction, and transportation, who
meet the criteria of a "workman" as defined in the Act.
 Employer's Liability: The Act places the responsibility on employers to
provide compensation to workers or their dependents for injury,
disability, or death caused by accidents arising out of and in the course of
employment. The liability of the employer is strict, meaning that
compensation is payable even if the employer is not at fault or negligent.
 Compensation Amount: The Act provides a schedule of compensation
amounts based on the nature of the injury or disability suffered by the
worker. The compensation is typically calculated as a percentage of the
worker's wages and varies according to the severity and nature of the
injury.
Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

 Employer's Insurance: Employers are required to take out insurance

policies to cover their liability under the Act. This ensures that there are
adequate funds available to provide compensation to workers or their
dependents in case of injury, disability, or death.
 Compensation Procedure: The Act outlines the procedure for claiming
compensation, including the time limits within which a claim must be
filed, the method of calculating compensation, and the process for dispute
resolution.
 Dispute Resolution: The Act provides for the establishment of
Compensation Commissioners or Workers' Compensation Boards to
adjudicate disputes related to compensation claims. These bodies have the
power to determine the compensation amount and ensure that it is paid to
the injured worker or their dependents.

The Workmen's Compensation Act, 1923

The Workmen's Compensation Act, 1923 (now known as the Employees'
Compensation Act, 1923), is an Indian legislation that provides for
compensation to workers or their dependents in case of injury or death arising
out of and in the course of employment. The Act aims to provide financial
protection and support to workers and their families in the event of work-related
accidents or occupational diseases.
Key features of the Workmen's Compensation Act, 1923, include:
 Applicability: The Act applies to employees engaged in various
industries, such as factories, mines, plantations, construction, and
transportation, who meet the definition of a "workman" as per the Act.
 Employer's Liability: The Act places the responsibility on employers to
provide compensation to workers or their dependents for injury,
disability, or death caused by accidents arising out of and in the course of
employment. The liability of the employer is strict, meaning that
compensation is payable even if the employer is not at fault or negligent.
 Compensation Amount: The Act provides a schedule of compensation
amounts based on the nature of the injury or disability suffered by the
worker. The compensation is typically calculated as a percentage of the
worker's wages and varies according to the severity and nature of the
injury.
Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

 Compensation Procedure: The Act outlines the procedure for claiming

compensation, including the time limits within which a claim must be
filed, the method of calculating compensation, and the process for dispute
resolution.
 Employer's Insurance: Employers are required to take out insurance
policies to cover their liability under the Act. This ensures that there are
adequate funds available to provide compensation to workers or their
dependents in case of injury, disability, or death.
 Dispute Resolution: The Act provides for the establishment of
Compensation Commissioners or Workers' Compensation Boards to
adjudicate disputes related to compensation claims. These bodies have the
power to determine the compensation amount and ensure that it is paid to
the injured worker or their dependents.
The Workmen's Compensation Act, 1923, is an important piece of legislation
that protects the interests of workers and provides a legal framework for
compensating them in case of work-related injuries or deaths. It helps ensure
that workers and their families are financially supported during difficult times
and promotes a safer and more secure work environment.

Features of Workmen's Compensation Act, 1923

The Workmen's Compensation Act, 1923 (now known as the Employees'
Compensation Act, 1923), is an Indian legislation that provides for
compensation to workers or their dependents in case of injury or death arising
out of and in the course of employment. Here are some key features of the Act:
 Applicability: The Act applies to employees engaged in various
industries, including factories, mines, plantations, construction, and
transportation. It covers both manual and non-manual workers, subject to
certain exceptions mentioned in the Act.
 Employer's Liability: The Act imposes a strict liability on employers to
provide compensation to workers in case of injury, disability, or death
arising out of and in the course of employment. This liability extends to
accidents that occur on the premises of the employer or during the course
of employment-related activities.
 Definition of "Workman": The Act defines the term "workman" to
include any person (excluding an outworker) who is engaged in an
Mohammed Natiq R
Asst. Prof. DBIMSCA
MODULE 5: Industry Relations

employment that is manual, clerical, or skilled, and receives wages for the
work done.
 Compensation Amount: The Act provides a schedule of compensation
amounts based on the nature of the injury or disability suffered by the
worker. The compensation is calculated as a percentage of the worker's
monthly wages, subject to certain maximum limits specified in the Act.
 Employer's Insurance: Employers are required to obtain insurance
policies or make alternative arrangements to cover their liability for
providing compensation. This ensures that funds are available to pay
compensation to workers or their dependents in case of injury, disability,
or death.
 Compensation Procedure: The Act outlines the procedure for filing
compensation claims. It specifies the time limits within which a claim
must be made, the method of calculating compensation, and the
documentation required to support the claim. It also provides for the
establishment of Commissioners or Compensation Courts to adjudicate
compensation disputes.
 Dependency Benefits: In case of the death of a worker, the Act provides
for compensation to be paid to the worker's dependents, including the
spouse, children, and other dependents as specified in the Act.
 Appeals and Dispute Resolution: The Act provides provisions for appeals
against decisions of Commissioners or Compensation Courts. It also sets
out the procedure for resolving disputes related to compensation claims.

Mohammed Natiq R
Asst. Prof. DBIMSCA