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  • Print publication year: 2019
  • Online publication date: April 2019

9 - Employee Relations, Engagement, and Termination

from PART IV - Strategy Implementation

Summary

Chapter Overview

This chapter deals with the idea of employee relations, engagement, and termination. It discusses the concept of employee relations and its evolution. Issues related to trade unions, collective bargaining, and employee participation in management are highlighted. The meaning and significance of employee engagement are then discussed along with the typology of engagement. Thereafter, the topics of retention and employee termination are covered.

Learning Objectives

  • To get familiarized with the concept of employee relations and the shift in its approach
  • To understand the meaning and framework of employee engagement and the strategies to improve engagement
  • To develop an understanding of the concept of employee termination and identify ways of improving retention
  • OPENING STORY

    Industrial Relations Reforms in India

    The Government of India has unleashed labour reforms to give a fillip to the Indian economy by rationalizing the plethora of labour laws. This paves the way for the long-awaited and much-needed restructuring of industrial relations in India. This reform is in line with the central theme of the government to boost manufacturing for job creation through its ‘Make in India’ initiative.

    The Ministry of Labour and Employment has been taking steps for simplification, amalgamation, and rationalization of 44 central labour laws into four major labour codes—Code on Wages, Code on Industrial Relations, Code of Social Security, and Code on Occupational Safety, Health and Working Conditions. The government has taken several other initiatives as well:

    Legislative initiatives of Government of India

  • Payment of Bonus (Amendment) Act, 2015: Eligibility limit for payment of bonus is enhanced from 10,000/- to 21,000/- per month.
  • Payment of Wages (Amendment) Act, 2017: Allowed payment of wages to employees by cash or cheque or crediting it to their bank account.
  • Child Labour (Prohibition and Regulation) (Amendment) Act, 2016: Provides for complete ban on employment of children below 14 years in any occupation or process.
  • Maternity Benefit (Amendment) Act, 2017: Increases the paid maternity leave from 12 weeks to 26 weeks.
  • The Employee Compensation (Amendment) Act, 2017: Seeks to rationalize penalties and strengthen the rights of the workers under the Act.
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