What establishes the foundation for employer-employee relationships?

The foundation for employer-employee relationships is established primarily through employment contracts. These contracts outline the terms and conditions of employment, including responsibilities, rights, and obligations of both parties. They serve as a legal agreement that clarifies the expectations and requirements of the job. This clarity is essential in fostering a positive working relationship as it sets the framework for performance standards, compensation, benefits, and the potential for termination.

Other elements like performance reviews, annual bonuses, and employee handbooks play significant roles in managing and enhancing the relationship after it has begun, but they do not establish the foundation. Performance reviews assess how well an employee is meeting their contractual obligations, while annual bonuses may serve as incentives linked to performance. Employee handbooks provide guidelines and policies that further define organizational culture and procedures, but they function more as supplementary materials rather than foundational agreements that initially define the employer-employee relationship.