The dissertation examines the links between the employment relationship and employee motivation focusing on how employers and employees meet their obligations to each other. Literature is reviewed on the HRM theory, motivation theories, etc. A case study approach is used to examine the performance of a firm showing how employment obligations could be severely breached, which lowers the levels of employee motivation. The method of primary data collection through questionnaires is applied. Conclusions are made about the role of HRM in improving employee motivation and rebuilding the employment relationship between employer and employees.