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UK Edition
9th September 2024
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THE HOT STORY
Reform of employment tribunals will give staff new rights
Ministers are considering significant reforms to employment tribunals, including allowing workers to bring claims against employers if they have been made to work more than the maximum 48 hours permitted under the European working time directive. The proposed changes, part of Labour's plans for workers' rights, aim to provide employees with rights from day one, including sick pay and parental leave. Jonathan Reynolds, the business secretary, is negotiating details with industry representatives to address concerns about the potential chilling effect on businesses. Craig Beaumont, of the Federation of Small Businesses, warned: "Fear of getting sued is one of the most stressful aspects of running a business. Wherever possible, proceedings should be swift, fair, and easy for all parties.” The reforms will also extend the time limit for bringing claims from three to six months and allow breach-of-contract claims for working conditions.
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LEGAL
Managers support improved workers’ rights
Most employers support government plans to strengthen workers’ rights, according to research from Institute for Public Policy Research (IPPR) think-tank, the Trades Union Congress (TUC) and Persuasion UK. A survey of 1,000 managers suggests that more than two-thirds believe the rights of workers should be improved. The poll suggests that stronger employment rights could boost productivity and improve profitability, while also having a positive impact on employee health and staff retention. TUC general secretary Paul Nowak said: “This polling shows there is large-scale support for boosting workers’ rights among company managers and decision-makers,” while Dr George Dibb, associate director for economic policy at IPPR, said: “We know that having a happy, healthy, motivated and productive workforce is good for employees, but it’s also fundamental for the bottom line of a business.”
Retail industry 'reliant on underpaid women'
The Telegraph's Lucy Burton says that like many female-dominated industries, "retail has relied on the cheap labour of women for too long and many have had enough." The issue will come under the spotlight today as 60,000 Asda shop workers take their equal pay case to the employment tribunal. At the centre of the case - the biggest private sector equal pay claim ever - is a demand that shop workers should be paid the same as warehouse staff, an argument which Next store staff made successfully last month. There are more than 112,000 store staff across not only Asda but also Tesco, Sainsbury's, Morrisons and Co-op who have filed similar claims. Burton says the Next ruling "certainly has its flaws," but argues that it remains the case that "women's work has always been undervalued." She concludes: "Jobs which are flexible can be more easily exploited. Fed up after Covid and amid a rise in violence, shop workers have found their voice."
Deliveroo accused of underpaying drivers
Deliveroo has been accused of paying drivers below the minimum rate of £12 an hour agreed with the GMB union. Analysis carried out by Rodeo, an app that helps gig economy workers track their payments, found that of 531 food orders completed in the past four months, 278 fell below the rate agreed in May. Rodeo co-founder Alfie Pearce-Higgins said: “We have looked at a small sample of Deliveroo’s total deliveries . . . and found hundreds of examples that are below the supposed pay floor.” A Deliveroo spokesperson said: “We guarantee all riders earn at least £12 an hour while completing a delivery and the majority earn far more than this. This is audited annually to ensure compliance with this policy.”
Civil servant with germ phobia sues bosses over right to WFH
John-Paul Pryce, a civil servant with a long-standing fear of germs, has successfully completed the first stage of an employment tribunal case against his employer. After being allowed to work from home during the pandemic, his request to continue doing so due to his phobia was denied in 2022. Judge James Hendry ruled that Pryce’s symptoms qualify as a disability under equality laws, but found his case lacked strong medical evidence. A further hearing is scheduled, and Pryce has been advised to seek counselling.
BT and Aviva back UK plan to report ethnicity pay gap
A number of leading UK companies are supporting a government plan to make ethnicity pay gap reporting mandatory for large employers as part of efforts to tackle workplace inequality.
HEALTH & WELLBEING
Law firm boss urges email restraint
Segun Osuntokun, global senior partner at Bryan Cave Leighton Paisner (BCLP), has urged partners to refrain from sending non-urgent emails during weekends, highlighting concerns over excessive workloads. He said: "I know that if I send an email to a team member on a weekend . . . their weekend is going to be impacted severely." Osuntokun emphasised the need to prioritise colleagues' welfare, especially amid rising salaries that may pressure junior staff to overwork. The call for change follows the death of a partner at another firm which has sparked discussions about mental health in the legal profession. The government is proposing new rights for workers to ignore out-of-hours communications, which could lead to fines for businesses that persistently contact employees outside working hours.
REMOTE WORKING
Remote work is good for the economy, business secretary says
Business Secretary Jonathan Reynolds says remote working is good for the economy because people are more productive when they are happy. He said: “You do your best work when you're happy at home and when you're happy at work, you're happy at home.” Saying that he is happy for staff in his Department for Business and Trade to work remotely and live in any part of the UK, Reynolds said: “Sometimes, I've got people in the room, sometimes I've got people at home. Sometimes I've got people in many of the different offices that we have . . . I think being open to that kind of talent makes the organisation I lead far more effective. I think a lot of business leaders recognise that.”
HYBRID WORKING
Santander tightens hybrid working rules
Santander has revised its hybrid working policy, telling staff spend they must spend the equivalent of three days a week in the office. The change, which affects around 10,000 employees, will see an attendance requirement of 12 days a month replace a rule that said staff must be in the office for two days a week. The new rule, which will allow more flexibility than a formal three-day week requirement, affects those who work in offices rather than branches. Staff have been given until the end of the year to meet the new attendance requirement.
HIRING
Hiring slowed in August
Recent economic uncertainty has led to a significant slowdown in hiring, according to a permanent placings index from the Recruitment and Employment Confederation (REC) and KPMG, which fell to 44.6 in August from 47.7 in July. The index has been below the 50-point mark that separates growth from contraction since October 2022. Temporary hiring also contracted in August, with the index down to 49.5 from 49.8 the previous month. Jon Holt, chief executive and senior partner of KPMG in the UK, said: "Recent government warnings that the UK's economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans." Neil Carberry, chief executive of the REC, said that while there was "underlying momentum" in the jobs market, "employers are still cautious."
Recruitment at decade low
The jobs market in the UK has experienced its worst month in over a decade, according to a report by BDO, which revealed a decline for the 14th consecutive month with a reading of 95.89 on a scale where a score above 95 signals growth. This indicates that while recruitment is still expanding, it is at its lowest level since January 2013. The report highlights a decrease in job vacancies as businesses slow or freeze hiring amid challenging economic conditions. Meanwhile, output across the services sector rose to a two-year high in August, with a reading of 99.03. Kaley Crossthwaite, a partner at BDO, said the services sector has continued to be the “cornerstone of economic growth.”
Deloitte brings back face-to-face UK graduate interviews
Deloitte has reinstated in-person interviews for its UK graduate scheme, amid pressure from the Financial Reporting Council for firms to clamp down on the potential for cheating in virtual assessments.
WORKPLACE
Asda launches major savings scheme
Asda has introduced a significant workplace savings scheme for its 150,000 retail employees in collaboration with Wagestream. The scheme offers a 4.7% AER savings account, allowing staff to save without fixed deposits and withdraw funds at any time without fees. The initiative aims to enhance Asda's operating performance, which has been lagging behind competitors like Tesco and Sainsbury's. Hayley Tatum, Asda's chief people and corporate affairs officer, said: "This benefit is alongside other financial benefits and support we already offer our colleagues." Asda is also investing £30m in staff and £50m in store upgrades to improve its market position. Chairman Lord Rose has expressed concern over the company's current performance, urging Mohsin Issa to step back from the daily running of the retailer as the chain searches for a long-term chief executive.
STRATEGY
Mobile merger could put jobs at risk
Three UK finance boss Darren Purkis says some jobs are at risk if the merger between the firm and Vodafone gets the green light. A deal between the two firms would create the UK's largest mobile firm, with an estimated value of £15bn. Purkis, who will be chief financial officer of the combined group, said: “It's too early to say what jobs will go and what jobs will stay but clearly there will be synergies – there will be rationalisation.” He added: “But there will be job creation through the transaction,” noting that building a nationwide 5G network “will create thousands of jobs.” Union Unite has warned that 1,600 roles could be cut if the merger gets the go ahead from the Competition and Markets Authority.
INTERNATIONAL
Thai company offers Tinder leave to employees
Whiteline Group, a marketing firm based in Bangkok, has introduced an innovative benefit for its employees: Tinder leave. The initiative allows workers to take paid time off to pursue romantic connections on the dating app. The company also covers the costs of Tinder Gold and Tinder Platinum subscriptions, enabling employees to enjoy enhanced features. “Our employees can use Tinder leave for dating with someone,” the firm said in a LinkedIn post. The initiative aims to improve employee well-being. Management believes that being in love can lead to increased happiness and productivity. Employees wishing to take advantage of the benefit must provide a week's notice. Whiteline Group employs around 200 individuals.
 


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