Traditionally, labor relation was considered as a relationship between employees and employers. But these days,this has become a burning issue consisting of the relationship between workers, employers and social environment of the organization. It is a dynamic socio-economic process that makes a social dialogue possible among employees, employers and the organizational social environment. The primary focus of it should be on grievance handling, industrial dispute, and interpretation labor laws, etc. It provides a context in which organizational rules and regulations are framed so that organizational roles assigned to members are performed.
Hence, labor relation or employee relation or industrial relation is a system that makes the social dialogue between employees, employers and society/government. It refers to all means of relationship between management and employees, unions and management, unions and employees and between the employees themselves. It is a joint effort of these major influences that produce a harmonious industrial relations between them. But it is multidimensional force that is influenced by the external forces economic, social, cultural, political, legal, technological and occupational forces. The primary concern of labor relations is to promote a healthy and harmonious relationship between employees and the employers. Beside management and workers, the government is another important factor that influences organizational affairs through legal and administrative measures. In this way, this harmonizes the divergent and conflicting interests of these parties through a consolidated dialogue.