Risk In The Employment Relationship

The British author Allan Massie in the year 1930 said the phrase that: 'We are responsible for actions performed under circumstances for which we are not responsible.' In the current trend the employment relationship is becoming more and more complex. With the meeting of the European Union regulations, the requests of the employers in relation to the employment law at UK are becoming all the time more burdensome.

At present most of the companies open subsidiaries, sub-branches and have their operations that are away from their borders, they are encountering a set of laws and exposures with which they may perhaps be unusual. Globalization of industry, such as the expansion of the European Union, is considerably upsetting the contact that many intercontinental companies face in their everyday operations.

The most common problems are the sexual and racial discrimination claims and the unfair dismissal that takes place. Initially these occurrences were in the US for some time and at present claims are also happening in UK.

Most of the Employment Practices Liability (EPL) litigation comes into three basic categories:

• Unfair dismissal
• Sexual harassment
• Discrimination

Unfair dismissal: false statements of job security or erroneous annotations about the financial strength or intransience of the organization through the hiring process, ambiguous performance reviews followed by annihilation, incoherent application of restraint across the employees, mishandled extinction meetings.

Sexual harassment: not enough or mishandled unfortunate behavior investigations, multicultural communication breakdowns, a constricted or warning complaint reporting policy, lack of knowledge regarding the sexual harassment law, hassle as a result of quick growth, defectively handled layoffs.

Discrimination: bigoted comments, asking illegitimate questions when hiring for interview, a manager's ill-advised effort to be 'affirmative', disappointingly communicated or delineated endorsement criteria, exclusive of older employees from working out or for the development programs in the career etc.

Around 80% of all the employment-related queries are due to failures in the relationship. These failures also account for the turnover of the concern, job disappointment and for a less organizational commitment.

Questions:

• What are the other risk factors in the employment relationship?
• What do the US employers do in order to reduce the EPL?