Economists have traditionally identified four factors of production viz. Land, labour, capital and organisation. The role of labour as a factor of production is increasingly becoming vital in the modern society. Human beings are the ones who accumulate capital, exploit natural resources, build social, political and economic organisations and carry forward national development. Thus, labour contributes most to the wealth and health of a company. The term Employee Relations refers to the relationship between labour and management of an organisation that grow out of employment. Both parties need to work on a spirit of cooperation, adjustment and accommodation.