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1 Importance of employee relations in respect to influencing Prudential HRM

decision-making.
Definition: The term ‘employee relations’ involves “that of industrial relations, which are
about relationships between managements and trade unions involving collective
agreements, collective bargaining, arguments resolution and dealing with issues relating
to the employment relationship and the working environment”. (Human Resource
Management, 2020)
Employee relations plays an important role in an organization. There are three significant
advantages as follows. Firstly, it help increase working productivity of employees.
Strong employee retention create a pleasant and effective working environment, from
which rise employees’ spirit and motivation. Consequently, the increased productivity
leads to growth in profits for the business. Secondly, it create employee loyalty. A
productive and friendly working environment will encourage employees’ loyalty and
improve employee relation, which help cut down recruitment, hiring and training
expense. Lastly, it help maintain and enhance relationship among co-workers, between
employers and employees. If there is a strong relationship in working place, employees
will be more productive, more efficient, create less conflict and will be more loyal.
Therefore, Prudential always value employee relation through some strategies, which
bring many advantages for Prudential in decision-making in following aspects:
 Decision on recruitment and selection: Good employee relations also make the
process of recruitment and selection faster and easier. For example, as the employees
are satisfied with the company, they introduce their good people to the company.
Besides, employees can be hired and selected more quickly through personality,
attitude and working capacity which are suitable with the culture and development in
the future of the company. Therefore, in recruitment and selection process of
Prudential, there is an online test to assess generally personality, attitude and capacity
of employees. (Prudential Vietnam Site, 2020)
 Collective decisions: It help come to collective agreements faster and make decisions
more objective through employee involvement and discussion processes. In fact,
while making decision, it is quite difficult for a manager to take decision on her or his
own so he or she needs various ideals from employees. Therefore, Prudential commits
always listens to the needs and contributions of employees. (Prudential Vietnam Site,
2020)

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  Performance decisions: Employee relation allow employee to take part in making
decision, which motivate employees always try their best to contribute creative ideals.
As a result, employees will comprehend their opinions are essential contributions to
the company, leading to working motivation and positive outcomes for company.
 Decision on working condition: It help improve mutuality - a benefit in achieving the
common goals of company based on shared values. In fact, taking part in the decision-
making process gives employees the chance to share their opinions with each other
and boosts team spirit among employees. Prudential provide a comfortable
environment with opened office to erase any distance between employees and
employers and those modern utilities enable employees to discuss and innovative
more effectively, which boosts efficiency at workplace. (Prudential Vietnam Site,
2020)
 Decision on payment, benefits, rewards and recognition: It help encourage employees’
loyalty as well as working spirit to improve profit of the company. Besides, the
decision-making process can be influenced because the employees who receive
regularly rewards for their performance can be considered as standard for selecting
leaders or gain higher positions and responsibilities within the company.
Consequence, Prudential will pay salary equally based on employees’ ability with
other benefits such as December bonus, 20 annual leaves every year and so on.
Besides, Prudential commits always listens to the needs and contributions of
employees and provides Providing Life Care program - wage and reward, competitive
welfare, qualification and dedication of each employee has been recorded to recognize
for reward timely and accurately. (Prudential Vietnam Site, 2020)
Thanks to effective employee relation policies as well as benefits in decision-making it
bring about, in March 2017, Prudential Vietnam received the "Best Place to Work in
Vietnam 2016" award.
1.2 Trade unions and workplace representation
Trade unions are associations of workers formed to represent their interests, improve
their pay and working condition.
Trade unions play an important role in an organization concerning nation, collective
agreements, the discipline, grievances and redundancy of employees:
Trade unions in Vietnam:
- Labor code provides many supports for unionism in Vietnam.

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 - Vietnam does not allow any foreign trade unions to operate in Vietnam.
- Employees cannot be fired for union activity.
- Private companies quietly discourage employees from unionization by using
short-term employment contracts.
Collective agreement:
- The union negotiates a contract for union members.
- Contract covers compensation, benefits, work rules, sick pay, vacation pay,
overtime hours, etc.
- Union leader assists with employee problems
Discipline, grievances and redundancy:
- Companies will determine an appropriate formal process in their employee
handbook to help they understand about discipline, grievances and redundancy.
- Accompany workers in disciplinary and grievance meetings
Therefore, in Prudential, trade unions also help make decision of company. Firstly, they
help managers recruit suitable employees with Prudential culture because they
understand thoroughly human resource situation of the company. Secondly, trade union
also take part in the training policies for employees to help them develop completely.
Thirdly, they are responsible for voting in union selection, discussing urgent matters and
attending the annual conference. Lastly, trade unions play a vital role in effective
communication between managers and employees to help both of them make decision
faster. They support system to make sure that the differences of opinion do not turn into
major conflicts. Therefore, they help promote Prudential HRM decision-making more
efficient.
1.3 Applying legal in Prudential
Labor law is a very important issue in human society. Workers are also the most
important force in society because they create most of the values that determine social
development. Therefore, the regulations governing labor are also an important part of the
legal system of any country. Firstly, the labor law in Vietnam is the institutionalization of
the Party's leadership towards the field of social labor. In addition, the labor law also
supports the market with regulations on a social insurance regime and recognition of
funding from the budget for the insurance fund; maintains the employment system of
employment and the necessary support funds for the problem of employment; supports
vocational training through regulations on the system of public schools. The provisions
of the labor law are aimed at regulating the labor market, the regulations on the minimum
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 wage, and the conditions for foreign workers to work in Vietnam... In other words, there
are six key legislative issues that will influence HRM decisions of organizations in
general and Prudential in particular:

Legislative Purpose
issues
Equal “It create equal opportunity for all employees to apply and be selected for the jobs, to
opportunity be trained and promoted in their career and to have that employment dismissed fairly.
All employment decisions have to be based only on a person’s ability to do the job in
question, which not related to a person’s sex, age, racial origin, disability or marital
status”.
=> Decision on recruitment, selection, training, reward and payment for employees in
the same ability and position has been equal.
Data It ensure security of employee’s personal information not to be sold for third party,
protection especially sensitive data. However, there is no any clear data protection article in
Vietnamese labor code while in the UK, the Data Protection Act is very important,
which include:
“a) The right of employees to access their personnel files, to be informed of the
purpose for which data is being collected about them, and to approve the use of that
data for any other purposes.
b) Requirements for the adequacy, up-to-datedness and security of information
c) Additional safeguards on the collection of data about race, ethnic origin, religious
or political beliefs, union membership, health, sexual orientation or criminal
activities”
Health and Health and Safety law is a field of law about the safety of employees at work, which
safety requires employers to apply safety methods for the benefit of their employees. Its
purpose is to encourage and require safe working conditions with minimal risks for
employees.
=> All decision of company have to ensure health and safety for employees. For
example, working time will not exceed 8 hours per day to ensure time for the rest or
in maternity period, An employer must not require a female employee to work at
night.

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Redundancy Redundancy is a type of dismissal that can occur when employers want to diminish
the number of staff working for them. They may select workers for redundancy, ask
for volunteers, or both. Redundancy law help employees in this situation. These laws
can comprise a notice period, redundancy pay, the offer of suitable alternative
employment, and time off to look for work.
Dismissal Help company to operate efficiently. Besides, it ensure a fair dismissal. In the UK, an
individual can be legally dismissed in three ways:
“a) Employment is terminated with or without notice
b) Employment under a fixed-term contract ends and is not renewed on the same
terms.
c) The employee resigns because of conduct which is a significant breach of the
contract of employment or which shows that the employer no longer intends to be
bound by one or more of the essential terms of the contract”
=> Decision on employee dismissal has to be based on the law of both the
government and company or else employees will have the right to make a claim for
damages
Employmen It make sure that both employee and employer have a clear comprehension of what is
t contract expected during the working period. The contract must have the names of the parties
concerned, the date of the commencement of the job, its title, terms of payment,
working hours, holiday, sick pay and pension entitlements, notice of termination of
employment, discipline and grievance procedures. Beside, contracts can also help
eliminate any disputes that may accrue later.

1.3.1. Vietnamese labor code

Issue 1: Article 17. Prohibited acts by employers during conclusion and
performance of employment contracts
“Keeping the employee’s original identity documents, diplomas and certificates”.
(The labor code of Vietnam)
Employers must obey to the Information Security Policy. This will help defense
the personal information of employees, protect the Group from potential effects and
liabilities resulting by stopping others from improperly accessing and abusing their
personal information.
Issue 2: Article 125. Dismissal for disciplinary reasons

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 “An employer may dismiss an employee for disciplinary reasons in the following
circumstances:
The employee commits an act of theft, embezzlement, and gambling, deliberate
infliction of injuries or uses drug at the workplace”.
(The labor code of Vietnam)
In Prudential, both employers and employees must accomplish training on crime
topics such as anti-bribery & corruption and fraud prevention). Failure of employees
to meet their requirements during the training or working process may led disciplinary
action or even dismissal.
Issue 3: Article 135. Ensuring occupational safety and health at the workplace
“Employees shall abide to the regulations, internal rules, processes and requirements
on occupational safety and health, comply with law and firmly grasp knowledge and
skills on measures to ensure occupational safety and health at the workplace”.
(The labor code of Vietnam)
Prudential always create condition for our employees to purchase life insurance
with discount. Besides, during the Covid 19 epidemic, Prudential also obey social
distance: not muster over 10 people in a room.

1.3.2. UK labor law

Issue 1: Sex discrimination - 32. Right to declaration of invalidity of
discriminatory terms and rules
- “Employee have a right to present a complaint to an employment tribunal if they
are discriminated.
- When an employment tribunal finds that a complaint presented to it under
subsection above is well founded the tribunal shall make an order declaring that the
term or rule is void”.
(Trade Union Reform and Employment Rights Act 1993)
In Prudential, all employees are treated equally to ensure diversity and inclusion
are embedded in the culture of the workplace. In Prudential, employees can freely
choose departments, branches; receive salary suitable with their skills but not by
gender and be equal in ensuring safety at work.
Issue 2: Guarantee payments - 32. Contractual remuneration.
- “A right to a guarantee payment does not affect any right of an employee in
relation to remuneration under his contract of employment.
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- Any contractual remuneration paid to an employee in respect of a workless day
goes towards discharging any liability of the employer to pay a guarantee
payment in respect of that day; and, conversely, any guarantee payment paid in
respect of a day goes towards discharging any liability of the employer to pay
contractual remuneration in respect of that day”.
(Employment Rights Act 1996)
In Prudential, before going to work officially, employees will be announced
the contract including salary level and the date they receive it every month. In
addition, Prudential also bring employees many welfare which is also comprised in
the contract such as December bonus.
Issue 3: Protection from suffering detriment in employment - 44. Health and
safety cases.
“An employee has the right not to be subjected to any detriment by any act, or any
deliberate failure to act, by his employer done”.
(Employment Rights Act 1996)
In Prudential, both employers and employees have to complete relevant
training on conflicts. In conflicting situation, employee should report their direct
manager or other relevant parties so to solve this problem together.

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 References
1. Human Resource Management, 2020
2. Prudential.com.vn. 2021. [online] Available at: <https://www.prudential.com.vn/vi/co-hoi-
nghe-nghiep/chuong-trinh-quan-tri-vien-tap-su/>
3. Prudential.com.vn. 2021. [online] Available at: <https://www.prudential.com.vn/vi/co-hoi-
nghe-nghiep/>
4. Prudential Vietnam. 2020. Prudential Vietnam Site. [online] Available at:
<https://www.prudential.com.vn/en/our-company/press-release/2017/prudential-tiep-tuc-
la-noi-lam-viec-tot-nhat-viet-nam-trong-nganh-bao-hiem-nhan-tho/>
5. Tra cuu phap luat - Thu thuut phan mem. 2021. Bo Luat Lao Dong 2019 Tieng Anh - The
Labor Code Of Vietnam. [online] Available at:
<https://www.tracuuphapluat.info/2020/01/bo-luat-lao-dong-2019-tieng-anh-labor-
code.html>
6. Legislation.gov.uk. 2021. Trade Union Reform And Employment Rights Act 1993. [online]
Available at: <https://www.legislation.gov.uk/ukpga/1993/19/part/II/crossheading/sex-
discrimination>
7. Legislation.gov.uk. 2021. Employment Rights Act 1996. [online] Available at:
<https://www.legislation.gov.uk/ukpga/1996/18/section/44>
8. Legislation.gov.uk. 2021. Employment Rights Act 1996. [online] Available at:
<https://www.legislation.gov.uk/ukpga/1996/18/section/32>

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My CV apply for team 2 job position. This is their Job Advertisement:

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