Sample Essay on Labor Contracts

Labor Contracts

Employees and the employer are guided by the contract of employment, which stipulates the terms of services and roles played by each of the parties. Labor contracts also try to guide the employers on how to handle their employees so as not to infringe on their rights as stated by the law. It includes the description of duties to be performed by the employees in various departments, the period for the agreement to be in place and the payment mode within that set time. The terms of service and guidelines differ ranging from the private sector to public sector, although all of them are in line with the law concerning maintaining the ethic guide for employment. Contracts may be individually based especially in the private sector or the contract unions can negotiate the terms of service with the employer for the employees. The labor unions use the contract agreements for bargaining or negotiate new deals for the employee in case the employer breaches the terms of the contract.

Grievances arise after an employee raises a distress about the company policies and its effects on the working conditions. The collective agreement contains a clause for collective bargaining agreement giving the employees an opportunity of addressing issues that affect their working condition (Gennard & Judge, 2005). Grievance handling processes should be in range with the collective agreement for employment. It includes other clauses that may be added with time for the benefit of the employee. Contract agreement in the private sector requires the employee to agree to the terms of service for a period before any other changes are made. Contract agreement in this sector provides minimal or no clause for changes in the agreements made. However, any grievances made by the employee are under review by the employer, especially that relating to the company policy.

Private sectors offer the best platform for their employees to express their concerns and views on matters relating to their working environment. There are tremendous benefits gained from such models of addressing grievances, which aims to maintain a peaceful environment for the workers to have maximum performance in their field areas (Nurse & Devonish, 2006). The private sector has included a number of regulations for handling any grievances in comparison to the public sector. Handling of grievances within the public and private sector has similarities and alterations on how it establishes and carries grievance resolution consistent with the employment relations agreement. Grievance handling processes in the public sector are still advancing on better ways to address the employee issues.

The employee’s file grievances based on various issues relating to their place of work including objecting violation of the contract by the employer or biased corrective action taken upon an employee. The first step in grievance processing is the employee airing their complaints to their supervisor or immediate managers. In the private sector, the employee represents him/herself directly whereas in the public sector a union representative can step in to represent the employee. A setback in employees representing themselves is that there are grievances that the employees may have against their managers and at this state, there is no hope of resolving it directly with their managers. Failure in determining the appropriate solution for the grievances leads to the next step.

The next step includes analysis by a higher level of board conducted by the firm’s representatives. This level of analysis only occurs after an employee feels the agreement but may result in a strange relation between the employer and the employees. The grievances are analyzed and the responsible parties are punished in accordance with the law. The responsible party punished whether the employer or the employees has a right to appeal in reference to the punishment arguing the punishment is unjust. Appeal from any judgment made results in arbitration, which is part of the labor contract for all employees. If not, the employee can seek legal help from the judicial system to resolve the matter.

Grievances resolution in both private and public sectors is not so different. Matters in administering discipline and discharge clause should be justified and consistently applied to all workers (Ramsay, Scholarios, & Harley, 2000). Employee discharge in the public sector involves a long process of investigation and analyzing the worker’s performance before settling for dismissal an employee. The constitution protects employees in the public sector more than in the private sector. Employees in the private sector are susceptible to being dismissed for reasons other than discrimination of an individual. A similarity between the two sections on employee grievance handling are joined by the governmental laws relating to labor contracts that promote enhancing individual rights.

The ways grievances are handled in an organizational set-up have a significant impact on employee relations, which in turn affects their performances. The performance record of an employee may be altered with the way a grievance is handled. Most instances a grievance is brought up is usually relating to the work environment of the employees. Correctively judging and punishing an individual is only justified if it is the guilt is proven. Punishment can range from dismissal of the employee or demotion from a given level of the organization. Poor judgment reduces the commitment that other employees have towards achieving the organizational objective and at time results in absenteeism.

Another negative impact that may arise is the reduction of determination by the employees. A wrong decision that is biased according to the levels of employment may result in reduced moral from individuals and as a result, reduces performances. Grievance handling process should be thorough to ensure that the well-being of the employees is maintained and reduce any form of mistreatment from the administration (LaVan, 2007). A just system boosts the performance and determination of employees because their welfare is catered for. As such, there is need to maintain integrity in administering judgment when handling employee grievances.

The way of handling grievances also has a positive attribute in relation to employee relations. The employee’s morale is boosted when the administration handles the grievances with a clear mind with no biases. It should ensure that the rule of law is maintained and irrespective of the position in the company, the responsible party is punished accordingly.

In conclusion, the way grievances are handled in the private sector and public sectors are not so different with each working in line with the regulations of the law regarding the good fare of employees. Organizations need to establish an appropriate way of analyzing grievances brought by the employees to create a suitable environment for maximum performance by their workers. In addition, handling grievances within an organizational set-up should be handled with honor and an appropriate punishment is passed on the guilty party. The purpose of conducting all these steps is to ensure the success of a business setting in achieving their objectives by setting a good business setting.


Gennard, J. & Judge, G. (2005). In Employee Relations. Wimbledon, London: CIPD Publishing. pp. 155-300)

LaVan, H. (2007). Public sector employee discipline: Comparing police to other public sector employees. Employee Responsibilities and Rights Journal, 19(1), 17-30.

Nurse, L. & Devonish, D. (2006). Grievance management and its links to workplace justice. Employee Relations, 29(1), 89-109.

Ramsay, H., Scholarios, D. & Harley, B. (2000). Employees and high‐performance work systems: Testing inside the black box. British Journal of industrial relations, 38(4), 501-531.