As mentioned in the above discussion, Industrial relation law reforms focuses on two rudiments of employment relations, seizing pays and conditions (i.e. negotiating and employer’s right to end employment relationship). The role of state or the governing body, which is a vital part of the employee relations system as it has the power to affect and influence the relation between the employer and employee and shift the power balance, was also briefly discussed. It was seen that the state has entire supremacy over the execution of sanctioned laws as well as modify them as they deem fit. Furthermore, it not only has the power to impact government organisations but it is also capable of triggering change in private companies. It can, for instance, take stand on the operation and management of private firms (Anon, 2010). The state, with the control over governmental divisions and antagonism with state owned enterprises, has the aptitude to modify situation where the private organizations function (Anon, 2010).
In addition to the role of usual assurance and fair treatment to every entity in the employment relationship in an unbiased approach, the state via its employment relation policies, preserve development with the command of allocation and workface eminence in the employment relationship (Wattignar, 2008). As mentioned earlier, this socialist ideology provided enormous powers to the Labour unions in South East and East Asian markets. They had great sway on the governmental results constant with comparatively little associates.
The state also has a role in controlling unemployment or rather employment. In the late 90s, whole of Europe including UK was facing tremendous spell of unemployment (World Economic Outlook, 1999, pp 88). During the past decade, the working environment in UK has seen some radical changes such as; the concern of selection in employee relations, human preservation were presumed to be due to prejudice alongside visible minority in the British labour force (Thomas, 1998, pp 189). However, the study explored and recognized that employees are hired by employers based on merit and qualification, using fair judgment. Instead, the study indicated that there is a north-south divide in UK, a geographical location discrepancy, which leads to question the environmental shifting, local redundancy and ignorance of municipal government (Wilkinson, 1992, pp 88). However, all these issues were resolved by the state by improving policies in the UK. This example from UK reiterated the point made by Howell (1998, pp 293) aided the interference of the British government in the areas of employment remains an effective method of proper authority. The state is also responsible to gain poise on economic allegations of circumstances in the workforce from private and public sectors and recognise the rights of trade unions.