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It goes without saying that employee benefits are a common incentive given to employees within a business. They are often used by organisations to attract and retain their top talent. They are an incredibly undervalued tool that can improve wellbeing and aid in fostering a prosperous and positive work culture.
The power of implementing employee benefits can often be overlooked when you’re combatting other challenges and trying to scale your business. In the short term not having them might lower costs for your business but in the long term, it may prove to be a hinderance to your growth and the success of your organisation.
A challenge affecting most businesses no matter the sector is attracting and retaining top talent. It’s not just about getting an individual in the door. It’s all about getting the right people for your roles and your business. A good employee benefits package can help you to achieve that. A report found that 69% of employees are likely to stay with an employer with a good benefits package while 68.2% said they were more likely to take a role if a good package was being offered. Having a comprehensive benefits package will also help you to build an attractive employer brand- creating a narrative that you’re an organisation that cares for its employees.
Its more than just a nice to have- employee benefits can advance your workforce and your business.
The cost of hiring, onboarding and going through that process a couple of times is high. You also need to factor in the loss of productivity, the time to train someone new and the knock-on effect this can have on your workforce. Employee benefits are linked to high employee wellbeing. The importance of wellbeing in the workplace is only going to get higher and higher on the agenda for organisations. Organisations where employee wellbeing is taken care of often see stronger job satisfaction, higher productivity, and even lower absence rates.
So, how do you understand just how important employee benefits are and you know that you have to have them. Where you start and what do you go for?
There’s no shortage of different types of employee benefits that you can implement. You could offer any and all but that wouldn’t make sense and it would be like adding petrol to a fire. Your scheme needs to be tailored to the needs of your employees.
Speak to them about what benefits they would like. Doing so is twofold. One- you’ll be able to carefully cultivate a package that meets the needs of your people. Two- employees will feel genuinely cared for and appreciate being asked for their opinion throughout the process.
Employee Assistance Programmes (EAPs) can play a powerful role. They are a benefit that can provide your team with support and also practical advice. They aim to support physical, mental, and financial wellbeing. This can either be online or confidentially over the phone. Access to these services typically occurs 24/7 so employees have access to this support when they need it most.
Often speaking about wellbeing is a challenge for employees but creating a safe space in which they can access information and receive support about issues ranging from workplace discrimination to anxiety or debt will help to create a happier more well workforce.
For this benefit- there is a statutory minimum organisation must apply. You can however choose to provide more.
Women are entitled to a year’s maternity leave. During this period, eligible mothers will get 39 weeks of statutory maternity pay. This equates to 6 weeks at 90% of full earnings and 33 weeks at statutory maternity pay.
With paternity leave you are entitled to two-week paid leave once the baby is born.
Shared parental leave is also an option- this is shared between both parents and consists of 50 weeks of leave and 37 weeks of pay. This will be shared between both parents.
There are no legal requirements to offer enhanced leave or pay. However, doing so will help to demonstrate that you’re a family friendly organisation that people won’t be punished for wanting to grow their family. Whilst this is an exciting time for new parents, the financial burden can provide unnecessary stress. Enhanced packages not only give you a competitive edge against your competitors, but they also show that you care and are likely to result in anyone returning from leave feeling less stressed.
Flexible or hybrid working has become something of a buzz word in recent years. However, post pandemic the work life balance has become increasingly more important to employees and employers and one tool that helps is to have that is flexible working.
Flexible working can take many different forms. This may range from being able to finish later after an appointment or starting earlier because you have evening plans, working a four-day week because that suits you better or offering your employees the opportunity to create individual working patterns that help you to thrive and be your most productive. Flexible working can also allow your people to work where they feel the most comfortable.
Not that it has to benefit you too. But from an employer perspective flexible working can:
Physical health is really important. Organisations that show they care and want to protect this will help in boosting their employees mental and physical health. This might be a local gym or somewhere located close to your office. It Is important to ensure that such a benefit is not only an inclusive one but is also one that caters to staff of all ages, life stages and fitness abilities.
This is often a sought-after benefit as it entitles your employees to have private medical treatment if they fall ill or sustain an injury. Health insurance not only has a positive impact on employee wellbeing, but it also can help reduce absenteeism and attrition within your company.
It’s no secret that the NHS is currently under strain and stress. As waiting times increase an estimated 20% of employees have made a reduction in their working hours to wait for treatment on the NHS. This percentage is likely to rise in the coming years. When employees have the choice of going private through work it can help them to feel cared for and in turn reduce the number of hours employees are off sick.
If a happy and healthy workforce is your aim, then implementing private medical is a good way to go.
While creating an employee benefits programme can be daunting you don’t have to do it alone. Alongside our colleagues at AAB, we can help you to create a bespoke employee benefits scheme. From initial conversations to finding the best benefit deals around. We’ll spearhead your project and deliver a scheme you can be proud of.
If you have any queries about setting up an employee benefits scheme, our specialist employee benefits team are on hand to provide you with advice and support in creating a bespoke scheme. Please do not hesitate to get in contact with Robyn Whelan, Rhianne Stewart, or your usual contact.
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Employee Appreciation Day is celebrated on the first Friday of March every year. It’s important to make your employees feel appreciated and valued every day. However, this day is a great opportunity to do so on a bigger scale.
Showing your appreciation and thanks for your employees doesn’t have to break the bank. When employees feel valued, they are more likely to perform at their best. If you’ve not already planned, you still have time. This day is a great platform to roll out year-round recognition for a job well done that will quickly become part of your culture.
The day was originally coined by Dr Bob Nelson to celebrate the publication of his book ‘1001 Ways to Reward Employees’. In his book he highlights that it’s not an increased salary or a promotion that motivates your employees to do well. It’s actually intangible, unexpected, and genuine gestures that signify real appreciation for a job well done. The importance of recognising good work can sometimes be a huge difference maker when it comes to retaining top talent.
It’s often the case that feedback is only given when a problem has occurred or when a task hasn’t gone to plan. While that’s not an issue, when positives are always ignored it can leave doubt in an employee’s mind of their ability to complete their work to a high standard. Especially when the good more often than not outweigh the bad.
You might be thinking- is this day just performative do I really need to get involved? Failing to show appreciation and thanks for your teams at all might be a huge mistake. After all, employee engagement is one of the strongest ways you can drive employee success. How? Motivated and satisfied employees create a better and more positive culture which in turn delivers a productive and high performing team.
Here are just some examples you could implement on the day and thereafter:
While Employee Appreciation Day is a great starting point it’s not itself going to transform your working environment or culture. There are roughly 250 working days every year. So, recognition on only one of those days isn’t going to cut the mustard. Instead, you want to invest in a clear Employee Engagement Strategy year-round.
Ultimately the best employee engagement survey is one that is tailored to your organisation. The most important part of creating such a strategy is hearing from your teams themselves- what they think might be missing, what they’d like to see and what they’d like to stop. Once you collate this information you can share findings and next steps with your team.
There’s no magic wand for us to wave and fix a disengaged employee or negative culture. However, we are on hand to support you to start those conversations and create a bespoke employee engagement strategy that meets the needs of your people and your organisation. Creating a strategy that will bring you success is only doable when you have the data to back it up. We’ll ensure we provide you with regular feedback session touchpoints after implementing a strategy. Reviewing progress will help us to see how the strategy is working and if there’s other room for improvement.
Appreciation for your employees should never occur in isolation. It’s important to remember to continually thank and praise the people who are pivotal in driving your organisations success. Creating a positive feedback culture and taking steps to creating a more engaged workforce will help you to retain top talent. If you have any queries about how to create a successful employee engagement strategy, please do not hesitate to get in contact with Ailsa Smillie or your usual AAB People consultant.
Attracting and retaining top talent is a crucial challenge for companies in 2024. Employee turnover rates are at an all-time high since 2020 and in today’s talent market offering a competitive salary and benefits package isn’t always enough to attract or retain talent, most likely because that’s what competitors are offering too. So, how can we combat it?
Let’s start with the true definitions of attraction and retention. Attraction is determined by what kind of talent you are finding and interviewing before solidifying a job within your company. Retention is how companies are creating structures, procedures and processes that keep their employees engaged. Attraction and retention go hand in hand as its not only about attracting top talent, organisations also need to understand how to retain talent.
There are a number of reasons why organisations should focus on attraction and retention as it leads to many benefits such as improving company performance, productivity, employee morale and encourages a positive employer branding.
A strong employer value proposition is vital for the recruitment stage, this is what initially attracts and draws new talent to your organisation. To ensure this is embedded in your company culture, it needs to be lived and breathed within your organisation to retain employees. This is important to organisations as it reflects what employees can expect from you as a company and also what companies can expect from their employees.
Offering competitive salaries and benefits is a popular way to attract and retain your top talent. This can include health insurance, flexible work schedules, signing bonuses, commission schemes etc. However, this is simply not enough on its own, companies must adopt other ways to attract and retain.
The top talent will often seek continuous learning and development opportunities to grow their own skill set. Through investing into employee training programs, workshops, credited courses and mentoring programs, these are all ways to help create career progressions and professional development. In turn, by investing into growing your employees’ skill set companies gain the return by broadening the role responsibilities and allowing those companies to have qualified and trained professionals. Offering opportunities for advancement in employees’ careers.
Companies that support flexible schedules, remote work options, and reasonable working hours are more likely to attract and retain talent. By offering flexibility to employees, this may lead to increased retention and motivation. Studies show that 6% of employees changed jobs last year due to lack of flexibility and 12% left their profession/sector altogether.
A positive and inclusive company culture is attractive to not only the top talent but to all your current employees. Organisations that prioritise a supportive and collaborative environment tend to retain employees longer. Skills and experiences can be taught almost anywhere, a strong positive company culture will set apart the reputation to candidates in the recruitment process.
Focusing on the key benefits and offerings an organisation can make to its employees will ensure they have a higher competitive advantage, increased productivity from employees, adaptability and trust to change, enhanced reputation and employee morale and engagement. All these factors contribute to the long-term success of a company.
Companies should look to incorporate not just one method of attracting and retaining new talent but should combine multiple methods to increase their likelihood of success. There are not a one size fits all approach, doing research into what works well for other organisations in your industry, assessing your specific budget and available time you have to invest and engaging with current staff to find first had suggestions will help you to find out what works best for your business.
If you have any questions around what you can do as a company to improve your attraction and retention methods please do not hesitate to get in contact with Robyn Whelan, Georgia Wilson or your usual AAB People contact.
As we approach April 2024, UK businesses must turn their attention to an increasingly relevant issue – the gender pay gap. The need for accurate and timely submissions of gender pay gap data is not just a statutory requirement; it’s a testament to a company’s commitment to proactively taking measures to consider and improve diversity, inclusion and fairness in the workplace.
In today’s world, the gender pay gap remains a significant barrier to equality. Despite advancements in many areas, discrepancies in pay between genders persist, hindering not just individuals, but businesses and the economy overall. A diverse workforce, where everyone is paid fairly, is a more innovative, creative, and productive one. Hence, addressing the gender pay gap is not just ethically right, it’s a practice we would consider commercially astute too.
If you would like to discuss your Gender Pay Gap reporting requirements, you can book a free consultation with a member of our team here.
Gender Pay Gap Reporting Requirements for Employers
The process of gathering and submitting gender pay gap data, however, is far from trivial. It requires meticulous data collection, sorting, and analysis. Payroll software can support with this, but our experience tells us that often the numbers can be more complex to manage than initially expected and shouldn’t be underestimated.
The Gender Pay Gap data must be accurate and submitted on time (by 04th April 2024, and public-sector organisations must report by 31st March 2024); otherwise, running the risk of non-compliance with regulations and potential reputational damage. It can be a time-consuming process, but it’s a necessary one.
Having said all that, it’s important to note that submitting your data is just the initial, surface level requirement. The real work lies in interpreting the data and crafting a narrative around what it means for your organisation in practice. This narrative is crucial because it provides context for the numbers and can help explain why the gap exists, what steps are being taken to close it, and how it aligns with the company’s broader diversity and inclusion goals. It’s the most visible part of your submission and is likely to be scrutinised by your employees, investors, competitors, media, and the public. So getting it right is essential!
Gender Pay Gap Reporting Guidance
There are numerous resources available for employers who are required to submit a Gender Pay Gap report, but the process is time consuming and can be complex depending on the structure of your organisation.
A brief high-level suggested summary of the steps required for submitting your Gender Pay Gap are noted below:
1. Determine Applicability: The regulations apply to employers in the UK with 250 or more employees. Organisations must complete their report for each separate ‘legal entity’, if you are part of an organisation or group with more than one legal entity. The 2024 reporting deadlines for submitting the gender pay gap report are as follows: 31 March 2024, and 04 April 2024.
2. Gather Data: You should base your gender pay gap calculations on payroll data taken on your snapshot date (which can be confirmed on the gov.uk website). Collect relevant employee data, including the proportion of male and female employees in different pay quartiles.
3. Prepare Your Data: From the data you have gathered prepare the following:
4. Calculate Key Metrics: Calculate the following metrics based on the collected data:
5. Prepare a Written Statement: Provide a written statement signed by an appropriate senior individual, such as a director, confirming the accuracy of the calculations.
6. Prepare Supporting Narrative & Action Plan: This step is not a legislative requirement but is strongly advised because a supporting narrative and action plan can help people understand why you think you have a gender pay gap and what action you have taken to analyse and close it. Including this step in your Gender Pay Gap reporting process can positively impact an organisations reputation.
7. Publish the Gender Pay Gap Report: Publish the report on the company’s website and report to the government via the designated online reporting service.
8. Promote the Report: Ensure that the report is easily accessible to employees and the public. Consider providing a narrative to explain any identified pay gaps and the actions being taken to address them.
9. Review and Update: Regularly review and update the gender pay gap data, at least annually, to track progress and assess the impact of any measures taken to address the gap.
10. Addressing Pay Gaps: Consider implementing strategies to address identified gender pay gaps, such as training, mentoring, and policies promoting equal opportunities.
11. Plan for Next Year’s Report: Establish an end-to-end process with key milestones and deadlines to ensure the organisations gender pay gap reporting process can not only tick the legislative requirements of the report but can provide as much value as possible to the organisation. HR and Employment Law specialists can assist with planning and preparing Gender Pay Gap reports, reflections, and action plans.
Gender Pay Gap Service
AAB People understand the complexities and challenges of the gender pay gap submission. We have the expertise and resources to help you navigate this process seamlessly. We can assist with getting your data into the right place, complete the analysis, and also help you craft a compelling narrative to comply with regulations and set you on track to focus your future strategic aims.
The gender pay gap submission due in April 2024 is not just about meeting a legal requirement, it’s an opportunity to reflect on and improve your company’s diversity and inclusion practices. It’s about taking a step towards a more equal and inclusive future and we would be happy to work with your organisation on this together.
If you would like to discuss any aspect of the Gender Pay Gap reporting process, please contact Rhona Macleod or your usual AAB People contact.
The world of HR and the workplace has undergone so many changes in recent years. Through technological advancements and shifts in cultural opinions we expect that the workplace in 2024 will continue to adapt and change. It can be easy to continue on as before however, business that cannot or who refuse to adapt and change run the risk of getting left behind and missing the opportunity to be leaders of change.
We’ve pulled together the HR Trends that we think are going to make the most impact for organisations. The most important ones for employers to focus on in the year ahead.
It’s become something of a buzzword in recent years but it’s clear that not only is AI here to stay- it’s also going to transform the workplace. At it’s very core this is a technology that has been introduced and can be trained to perform both menial and also advanced human tasks. Exploring ways AI and other digital transformation can be utilised to support transactional activities and free up time for employees to add value in other ways is key. It’s important to note that this will likely require a redevelopment of skills for many people within your team.
AI isn’t here to replace your team- it’s important you make this clear and bring them on the journey with you. This is something new not only to the team but also to you. Look at the bigger strategic picture and work to ensure team members have the skills they need so their energy can be focused on what matters. As Forbes said, the greatest benefit of AI is in augmenting and improving processes that already exist with the people already in your team.
Following trends such as the Great Resignation and Quiet Quitting individuals are much more willing to move from role to role in the pursuit of better development and pay. Why? Because of the growing demand for better work experiences. The employee experience stretches beyond just their experience in the workplace. It extends to aspects such as their job design. Now more than ever employees are looking for non-traditional job designs that help them balance work and life. For example, employees are more likely to stay in a role or move to a role that offers flexible arrangements for their overall wellbeing. Tailoring job design to your employees and your organisation will be key in 2023. It will be the year of inclusive and engaging work environments. Job design is such an (important?) tool to enable this to progress.
The individual contributions of our people go hand in hand with your organisational goals. Progressing in their career is important to people. Supporting the development of your team will boost morale, help with employee engagement, benefit your work culture and help with not only retention but also talent attraction. If this is your workforce, they’re going to want to your business to succeed. This will prove to be important for 2024 and beyond.
In 2023 EDI was thrown to the forefront of many senior internal conversations. A question that has likely come up time and time again ‘are we doing enough?’ followed by ‘if we’re not, what should we be doing?’ in the wake of one of the largest social justice movements many organisations made ambitious statements and commitments to EDI that they haven’t been able to fully stand by. Coupled with a divided society that brands some actions as “woke” and others as “performative” it’s understandable that organisations are somewhat wary of EDI.
It’s important to remember that EDI stretched far beyond just race. While that has it’s importance and is still an element you need to consider. EDI covers many other aspects. For example gender, neurodiversity and sexual orientation. It’s becoming increasingly more important to potential employees to work in organisations that best align with their personal beliefs and places that sit right within their moral compass. With a study showing that 95% of candidates compare EDI efforts when picking job offers- EDI is more than just a buzzword to be used to make your organisation look and feel good. It has to be a commitment you make to create the kind of workplace where everyone feels valued, safe to show up as their truest self and welcome when they do so.
EDI initiatives and the employee experience go hand in hand. It’s all about developing a positive employee culture as a whole and embracing a real approach to the wellbeing of your people- not just talking about it.
It’s often the case that wellbeing is used as a tool. Something organisations talk about but within their workforce the reality couldn’t be further from the truth. This is called ‘wellbeing washing’ where there’s no tangible actions to back up what you’ve said. Wellbeing is a non-negotiable for organisations in 2024. In 2023 we’ve seen issues such as mental health, burnout, and musculoskeletal as key indicators for absences. With workplace wellbeing challenges on the rise, the new year is the perfect time to address and put in place solutions.
We’ve all heard of toxic work cultures, but what actually are they? They tend to be workplaces where employees aren’t supported, valued or respected. It’s likely that the people within them have high levels of stress unmanageable workloads and little to no opportunities for growth or development. More often that not a toxic work culture will trickle down from the very top. If you’re an organisation using 2024 to catapult yourself to long-term success, then creating a positive work culture isn’t just a nice to have. It must become the focal point for your work culture. In turn you will create an engaged, positive and loyal workforce.
Do your employees feel comfortable speaking to the leaders in your organisation about any struggles they might be facing? It’s common for employees to avoid discussing any non-physical health issues with their manager. Employees want to feel supported and psychologically safe at work. The line manager is such an important element in the pursuit of good health and wellbeing in the workplace. A recent report by CIPD found 43% of line managers don’t feel they nave the necessary training, skills or confidence to support the mental health of employees. This common challenge can act as a blocker for employee wellbeing.
The decisions you make have far reaching consequences, that we might not even see for years to come. Choosing the right path for your organisation will be a journey. It will take innovation, authenticity, and also strategic foresight to ensure you make the right decisions. The changing nature of HR means that ignorance is not bliss- and choosing to ignore the trends can have a negative impact on your organisation and in turn the success of your business.
Making important strategic decisions for your organisation isn’t something you have to do alone. Our dedicated HR & Employment Law Specialists are on hand to help you make the right decisions to support your organisation. If you have any queries please do not hesitate to get in contact with James Richardson, or a member of our HR & Employment Law Team.
It’s a brand new-year, and for many people this means an exciting, fresh new start. For others, this period (and the month of January in particular) can be the gloomiest in the year. Whilst we all acknowledge that January only has 31 days, it can feel more like 61 days for some, and the half-way point of what is considered the longest month of the year is “Blue Monday”; the day perceived to have the highest workplace absence rate.
Gone, is the festive joy, the last of the Quality Streets and the promised New Year’s resolutions. All that appears left is the extra pounds (on your thighs and not in your wallet), a liver that could do with your attention and that awful sinking feeling that you need to change things in your life, including your job.
This doesn’t sound like the fresh new start lots of us are looking for with a new year, does it?
The good news is that Blue Monday does not actually exist and is certainly not a scientific fact. It was a marketing stunt dreamt up by a psychologist who goes by the name of Dr Cliff Arnall and started almost 20 years ago. It’s supposed to account for the long stretch until pay day, the worsening weather, dark nights and lapsed new years resolutions. It’s also linked to the “winter blues”, Ior seasonal affective disorder (SAD) which affects around 2 million people in the UK and can affect any age, including children.
The holiday cheer subsides leaving behind a feeling of emptiness for some which we feel the need to fill. Some of us will think the answer is to change our job role, infact, research published from Glassdoor identified that almost 1 in 5 people in the UK will change jobs in January.
As Employers, if we acknowledge that employees might start to feel like this at the start of a new year, what are we doing to address this, and what more can we do? Its important to recognise that not all voluntary turnover is bad, an employee with a bad attitude or one who consistently fails to perform might actually be a welcome relief. Turnover becomes a problem when you cannot hold on to your skilled employees and this negatively impacts the bottom line.
As an Employer, it is crucial to understand what make your employees “tick” and its not always about money. Giving salary increases is not always the answer and can be a very expensive mistake to make.
When was the last time you conducted an Employee engagement survey? This is the ideal platform to gain insight as to what your employees like, what they don’t like, why do they enjoy working for you etc. Most importantly, what have you done with this data?
Encourage employees to share concerns and frustrations. Feeling heard and listened to can significantly impact job satisfaction. Carry out an Engagement Survey, share the results and be honest about the changes that can be made and by when. Keep everyone informed of progress made.
Employees are more likely to stay if they feel valued and can see how their role impacts the overall company goals. Ensure annual reviews are completed and objectives are continuously followed up throughout the year, discuss opportunities and invest in training.
Acknowledge the potential challenges of “Blue Monday” and the post-holiday period. Offer mental health resources, encourage breaks, create a supportive atmosphere and encourage a healthy work life balance by avoiding an excessive workload after the festive period. Be an ambassador and encourage conversations on these.
Small gestures of recognition can boost morale and motivation and a simple thank you can go a long way.
Foster a sense of belonging by strengthening connections in the team. See Blue Monday as an opportunity to do something fun with the team.
Blue Monday may a have a rather gloomy reputation, but hopefully we can use this day as a reminder to prioritise and value our people. If you would like to discuss any aspect of blue Monday, employee engagement, workplace wellbeing or any other HR or people challenges, please contact Michael Black, or your usual AAB People contact.
It’s that time of the year again- the time of the year to start calculating holiday pay for your employees. In theory that sounds like the most simple thing, however it can come with complications. Earlier this year we provided an overview for employers on the Updates to Calculating Holiday Pay that centred around the Harpur Trust v Brazel (2019) court ruling. Since then, there’s been further updates that all employers should not only be aware of but should be taking notice of before they make any calculations.
To recap, the Harpur Trust v Brazel case involved a music teacher on a zero hour contract who disputed her employer’s calculation of her holiday pay. Initially, the school calculated her pay based on a fixed percentage of her earnings at the end of each term, which resulted in less holiday pay for her. The employee argued that her pay should be based on an average of her earnings over the previous 12 weeks (from 6 April 2020 this reference period was increased to 52 weeks), which would have resulted in a higher amount of holiday pay.
The case was initially dismissed by the Employment Tribunal but was later reviewed by higher courts, including the Supreme Court, which ruled in favour of the employee. The courts concluded that part-time workers and those on zero-hour or casual contracts should receive a full 5.6 weeks of annual leave, calculated based on a 52-week average of earnings.
This ruling caused concerns among employers, as it increased costs and impacted flexible working arrangements. The government then added this topic to a review they were completing to assess the ruling and determine if it should be overturned or made permanent legislation, taking into account the impact on employers and ensuring fair annual leave entitlement for all workers.
The long-awaited outcome was issued by Department for Business and Trade on 8th November 2023. The highlights of the outcome in relation to concerns around the Harpur Trust v Brazel case were:
It would be remiss of us to provide an update on calculating holiday play, and to predict any changes which may come, without providing a roundup of the basic details every employer must adhere to when calculating holiday pay.
Further to the update to legislation in April 2020, employers must also ensure that if there employees receive “variable pay”, they complete a 52-week look back to confirm what the employee’s average weekly earnings would be. This pay should include any overtime, commission, bonuses or other regular payments. If an employee has not been with their employer for the full 52 weeks, you should asses from the start of their employment. It is important employers to keep an up-to-date reflection of the average weekly pay to ensure employees are pay correctly when they do take annual leave. If you are unsure of how to calculate an employees pay if their hours fluctuate frequently or are not sure if a payment would be considered as a regular payment, please seek out professional advice.
Calculating holiday pay should be relatively straight forward. However, tribunal cases such as Harpur Trust v Brazel, changes to employment case law and changing work patterns continue to give employers additional factors to consider.
It is unclear at this point when the government will formally make the aforementioned changes to legislation or introduce new legislation following recommendations as appropriate. This will likely take time to be implemented, if the changes are likely to take place prior to the next general election should be confirmed in coming months. Employers should stay up to date with developments in this area and seek legal advice to ensure compliance with any changes to the law.
If you have any queries on calculating holiday pay, please do not hesitate to get in contact with Georgia Wilson, or one of our HR & Employment Law Specialists.
After a year of change and upheaval for organisations across the UK and Ireland we are expecting at least nine employment law changes in 2024. These changes are likely to change the employment landscape for employers and employees alike. Political and economic factors have caused unexpected challenges and have even delayed some legislative changes we originally had expected back in 2023.
It’s so important to make yourself aware of the upcoming changes as early as possible. The year is already shaping up to be eventful. These changes are wide reaching and cover a diverse range of areas across Employment Law. The impact for employees is likely the largest we will have seen for a while. So, what changes are coming?
Significant increases will come into effect from the start of the new financial year, and the highest pay bracket has been expanded to included 21 year olds and over for the first time, pushing more over the threshold of auto-enrolment into a company pension. This will increase wages to support with the cost of living, but cause additional costs for employers who will need to consider this impact moving forward.
Rolled up holiday pay will once again be permitted for those who work irregular hours, but only for those with a holiday year starting after 01 April 2024. The same goes for calculating pay which will be permitted with the introduction of new legislation allowing holiday pay to be calculated at the hourly rate of 12.07%, overruling recent case law.
From April 2024, those seeking to take paternity leave will be permitted to split their two week entitlement into two non-consecutive periods, and the time where this leave can be taken will be extended to within 52 weeks of the birth of their child or placement for adoption.
At present there is no absolute right to take time off as a carer, but this new legislation will provide employees with the ability to take one week of unpaid leave each year to support their caring responsibilities for a reasonable person.
Flexible working rights are to be expanded, evidencing further that flexibility will continue to be the expected norm in the world of work. Firstly length of service eligibility will be removed, with requests being permitted from day one. In addition the amount of time employers have to respond to any request will be reduced from three months to two months. Finally, multiple request will be accepted as the right to refuse more than one request per annum will be removed.
Enabling those with irregular hours to request a more stable and predictable pattern of work, this new statutory right will be open to those with 26 weeks’ service. Although the request may be refused for certain reasons to be outlined in the legislation, the general understanding is that a code of practice will govern what is acceptable and employers should be working with employees to provide better working patterns wherever possible.
With an effective date yet to be confirmed, it is worth noting that pregnant employees will soon receive further protection to prevent their dismissal in redundancy situations. This means considering them above other employees and is effective from when they tell you about a pregnancy all the way up until 18 months following the birth of their child – so well into their return to work from maternity leave. Please note, this legislative change will also be applicable to employees coming back into the workplace following maternity, adoption or shared parental leave.
New rules will require all employers to take reasonable and proactive steps to prevent sexual harassment from occurring in the workplace. Policies and training will need to be sufficiently maintained, along with firm procedures to deal with issues and robust mechanism available for concerns to be raised. Failures may result in tribunal award uplifts of 25% to any awards if reasonable preventative measures are not taken.
Slightly further ahead than 2024, but worth considering now. The new addition to family friendly entitlements will see those with babies admitted to neonatal care receiving up to 12 weeks of paid leave to provide some level of support in challenging circumstances.
In addition to all the above, it is also worth noting that although the Retained EU Law (Revocation and Reform) Act 2023 was quashed at a parliamentary stage this year, the government do still have the option to continue reviewing and reforming EU law as needed. We will need to continue to watch this space for further developments and potential implications as and when they arise.
Some timelines are yet to be confirmed, however we will provide you with updates as soon as any become available/ if any timelines are expected to change to ensure you can stay ahead of the curve.
Ensuring your organisation is UK Employment Law compliant is so important. With the changing nature of these legislative changes it can be so difficult to ensure compliance. That’s where we come in- our dedicated HR & Employment Law specialists are on hand to provide you with support to keep you complaint.
If you have any queries about the upcoming changes or any queries about Employment law as a whole, please do not hesitate to get in contact with James Richardson, or one of our HR & Employment Law Specialists.
AAB People are accredited by the Institute of Occupational Health and Safety (IOSH) to deliver their market-leading Managing Safely course. The IOSH Managing safely course enables managers to:
Our next IOSH Managing Safely Training course will commence on Wednesday 8 May 2024 at our Glasgow office on Finnieston Street. This course will run for 3 days over 3 consecutive weeks; 8th, 15th, and 22nd May 2024 (9:30am-4pm). The course costs £350 per delegate.
Upon completion of the course, you will be awarded your IOSH certificate, proving that you are certified to carry out Health & Safety responsibilities and training in the workplace.
Managing Safely is designed for managers and supervisors in any sector, and any organisation worldwide. They won’t suddenly become safety experts – but they’ll get up-to-speed on the practical actions they need to take, and gain the knowledge and tools to tackle the safety and health issues they’re responsible for. Importantly, Managing Safely makes a powerful case for safety and health being an integral part of day-to-day management and business.
Successful delegates are awarded an IOSH Managing Safely certificate.
We offer IOSH training either in our Finnieston office in Glasgow or online. If you choose to partake online, you can participate from anywhere in the UK.
I had a Christmas shopping day on Monday and went to a couple of indoor shopping centres where I noticed that most of the shops were as cold inside as it was outside.
While the cost of energy remains a concern for lots of businesses, turning down the heating, or worse, turning off the heating is not in the best interests of the business or your employees.
The Workplace (Health, Safety and Welfare) Regulations require all employers to provide a reasonable indoor temperature in the workplace, and suggest a minimum temperature for indoors should normally be at least: –
As an employer, you must decide what a reasonable temperature should be in your workplace by assessing the risk and acting on any findings by putting controls in place, including any temporary or seasonal considerations.
In indoor workplaces you should ensure that you are providing that “reasonable” working temperature and where you cannot achieve that think about:
You can also change work systems:
Temperature affects our rate of work. When we’re cold, we’re not just uncomfortable, we’re distracted. When our body temperature drops, we automatically expend more energy to keep ourselves warm, which leaves less brainpower for the tasks at hand. Concentration, inspiration, and insight are resources that colder temperatures immediately deprive us of, leading to a very clear impact on our productivity.
Employee wellbeing can also be affected by working in cold temperatures leading to higher susceptibility to illness, especially in winter when colds and flu are circulating along with the impact on mental health. The CIPD estimates absence costs a company an average of around £554 – £557 per employee, per year depending on whether they are a manual or non-manual worker, and these costs can quickly start to stack up within larger workforces.
The direct costs of absence include:
The indirect costs of absence include:
Before you turn the thermostat down, or off – think about the impact on your employees, the working environment, and your customers. Failing to do so may cost you more than keeping the heating on.
At this time of year, it’s easy to be concerned about the cold, take steps to ensure you’re compliant and then forget all about workplace temperatures again. However, ensuring that you’re abiding by The Workplace (Health and Safety and Welfare) Regulations all year round is important. That includes when temperatures start heating up. While we can all enjoy the warmer weather ensuring that the minimum temperature in hotter weather is equally just as important.
If you have any queries about your workplace’s health and safety, meeting health and safety regulations or any other H&S related issues please do not hesitate to get in contact with Lee Craig, or your usual AAB People contact.
