One of the oldest modes which worked through in establishing a relationship between employer and employee was collective bargaining. Collective bargaining is the process of negotiation between an employer or employers and trade union. Collective bargaining produce agreed agreements which state the terms and conditions which would govern the employer and employee relationship. In Britain the legislation itself played a very limited role in determining the employment relationship hence extra legal sources such as collective bargaining had been utilized. As in 1954 Kahn-Freund stated that there had been no major country in the world in which law has played a less significant role regarding labour management relationship then in Britain2. However during the periods of 1950s the state itself supported employment agreements through sources such as collective bargaining.
However due to this uncertainty created extra legal measures a need for a change was required to govern the process relating to the relationship of the employment contracts. Further as well with respect to paid annual laves there was no law which governed it however paid leaves were determined by individual employment contracts. First and initial