Employee relationship is a broad term used to refer to the general management, organizations’ administration and planning of activities related to developing, maintaining and improving employee relationships by communicating with employees, processing grievances/disputes, training and development of Human Resources etc.
Industrial relations start with the employment relationships. This starts as soon as a person is willing to accept compensation for in exchange for work which is defined as contract management. This relationship has a legal dimension and governed by Labour legislation. For example, management has to pay wages and salaries, provide leaves, safe working conditions and other duties defined by the law. Not to unjustly discriminate workers. It is not only the law, but also the fairness. The legal nature of the employment relationship means there are rights and obligations on both sides. Employees are obligated to obey legitimate work related instructions, to be honest and to promote the business of the employer with regards to the job description and the title. The employment relationship is embodied in the contract of employment and is an individual relationship between the employer and employee. It has a legal protection rather than a job and a document of contract of employment. Industrial relations begin with the employment relationship but moves beyond the employment relationship. Without the employment relationship there will be no industrial relations.
Industrial relations usually involve and consider employees as a group. The decisions taken by employers and managers are affecting on industrial relations: for example, opening or closing down of a workplace, introducing new technology or work organization, allocating a specific distribution of profits are some of them. Some decisions taken by employees on their own can also affect the industrial relations practices such as refusing to perform work as instructed, immediate leave without following proper procedures and not doing their job in working time.