This paper examines the management of employee relations in South Asian fir
ms in the UK independent restaurant sector. Key working practices pertainin
g to the employment relationship are examined in a particular socio-economi
c and spatial context. Acknowledging such contexts facilitates an appreciat
ion of how ethnicity and employment relations interact, rather than abstrac
ting culture from the material context in which it operates. Consistent wit
h this analytic focus, a mixed embeddedness perspective (Kloosterman et al.
1999) is adopted which recognizes the importance of both economic and soci
al aspects of ethnic minority entrepreneurship. A qualitative methodology,
drawing upon 23 case histories (involving both employer and employee perspe
ctives) is deployed. The indications from this research suggest that the em
ployment relationship is an outcome of the fluid interaction of social, eco
nomic and geographical contexts. This renders problematic both culturalist
and purely economic approaches to ethnic minority entrepreneurship. Future
research should carefully consider how the employment relationship is influ
enced by its embeddedness within specific communities.