Employment Law Update - March 2022
This Employment Law Update will cover our upcoming charity event, National Minimum Wage increases and the public redundancy case of P&O. If you would like to discuss any of the points raised in this email, please get in touch.
3 Days To Go Until Our Charity Event!
As you may know, this Friday we are all taking part in the Warwick Glow Walk for Alzheimer’s Society. We have raised an amazing £380 so far, taking us 75% of the way to our £500 target! We would like to thank all of our wonderful friends, family, and clients who have donated to our cause.
If you would like to help us reach our goal before our event, please click here. All donations are greatly appreciated, and we would be thrilled to raise £500 for this incredible charity.
If you would like to learn more about Alzheimer’s Society and the great work they do, please click here.
National Minimum Wage – Increase Reminder
As a reminder, from 1st April 2022, the National Minimum Wage will be rising. It is extremely important that you have pay increases in place for workers on minimum wage, or currently below the new rates, on or before 1st April.
Companies who do not pay minimum wage can face large fines, so you should ensure that all changes are communicated to both your employees and your payroll team.
P&O Makes 800 People Redundant – The Legalities and Implications
A trending topic in the news this week has been the sacking of 800 members of staff by cruise ship Company P&O. In a pre-recorded video released last week, staff were told they were going to be made redundant with immediate effect, and that their roles would be filled by agency workers.
The story has since caused national outrage and a number of protests have taken place on the cruise ships.
The issue is that the 800 staff were never consulted about their potential redundancy – something which would usually result in protective awards of up to 90 days pay for each employee. With over 100 proposed redundancies, the minimum consultation period is 45 days.
Employees with more than 2 years’ service also have the right to fair dismissal, making the Company vulnerable to claims that this dismissal was unfair, with pay-outs potentially reaching a years’ salary.
When making staff redundant, a Company should follow a full and proper process, or risk their reputation, staff morale, and financial/legal ramifications. As we watch this case unfold, we will see the impact of this on the Company going forward.
Financial Wellbeing at Work – 7/10 Employees Are Hiding Money Worries
In a recent poll by Wagestream, it was found that almost 7/10 employees are experiencing money troubles at work. Although since 2021 significant improvements in the offering of financial wellbeing programs have been made, there is a disconnect between how employers and employees perceive the support being offered.
In the survey, 91% of management professionals believed they were supporting employees financial wellbeing – but only 52% of employees felt that they were being supported.
This gap could be attributed to poor communication of what is available, and taboo around financial support in the workplace.
The CIPD believe that in-work poverty is likely to get worse in the context of the current cost of living crisis – but there are steps employers can take to help support their staff. We would suggest paying a fair and liveable wage to all staff and supporting progression in roles to give employees the opportunity to increase their earnings potential. You could also consider offering financial wellbeing support to encourage employees to be more open about any issues they might be facing.
If you would like any support or advice with tackling in-work poverty, please get in touch.
If you have any HR queries please give a member of the team a call today, on 01926 853388, or email firstname.lastname@example.org. Visit www.arhrconsult.com for more information.