We round up the latest employment news.
Inquiry into paternity and shared parental leave
The House of Commons Women and Equalities Committee (WEC) has initiated an inquiry to explore potential reforms in paternity and shared parental leave (SPL). The inquiry aims to address the unequal division of childcare responsibilities, which is seen as a significant factor contributing to gender inequality and the gender pay gap.
The WEC is seeking evidence on several key issues, including:
- The effectiveness of SPL in providing parents with choice and flexibility.
- The long-term impacts of SPL on gender equality and the labour market.
- Reasons behind the low uptake of SPL and potential solutions.
- Addressing inequalities in SPL uptake related to ethnicity, income, education, and occupational status.
- Alternatives to the current "maternal transfer" model of SPL.
- Lessons from other countries' experiences with SPL.
A government evaluation in 2023 revealed that only 1% of eligible mothers and 5% of eligible fathers take SPL. These figures show that SPL is not widely used and the WEC inquiry will, therefore, look into the reasons for this.
The call for evidence is open until 31 January 2025.
New TUC report highlights black women's experience of racialised sexual harassment at work
The Trades Union Congress (TUC) has published a new report detailing the experiences of Black women facing racialised sexual harassment in the workplace. The research, conducted by Queen Mary University of London and the University of Surrey, reveals alarming statistics and personal accounts from surveys and focus groups.
Key findings include:
- 65% of respondents experienced sexual harassment at work
- Over a third faced negative, gender-based attitudes, specifically targeting women and Black women
- 51% reported a negative impact on their mental health due to harassment
- 73% had been bullied or harassed
- 53% encountered racist remarks or comments
- 58% did not report harassment, with 38% believing their complaints would not be taken seriously
The TUC recommends a zero-tolerance approach to racialised sexual harassment, implementation of ethnicity monitoring systems, and training on racialised and gendered harassment. It also calls for the government to extend legal protections through dual discrimination provisions and urges trade unions to create dedicated spaces for Black women to share their experiences and review internal policies.
Government to ban offending employers from hiring overseas workers
The Home Office and the Department of Health and Social Care have announced new measures to prevent employers who commit serious offences from hiring overseas workers. These measures will be introduced through an amendment to the Employment Rights Bill (ERB).
Key points of the new measures include:
- Employers who repeatedly breach visa rules or commit serious employment offences, such as failing to pay the national minimum wage, will be barred from hiring overseas workers for at least two years.
- Sponsor licence action plans will be extended from three to twelve months to ensure long-term compliance with visa rules.
- The cooling-off period before a sponsor can reapply for a licence will be increased to at least two years for repeat offences.
- Employers will be prevented from charging skilled workers for any cost of sponsorship, addressing exploitation and unfair treatment, particularly in the care sector.
The Minister for Migration and Citizenship, Seema Malhotra MP, emphasized that these new powers will ensure fairness and prevent exploitation by requiring employers to bear the costs associated with recruiting internationally.
NatWest bans WhatsApp for staff
NatWest has prohibited the use of WhatsApp for work-related communications on company devices, citing concerns over data security and regulatory compliance. This decision comes amid growing scrutiny of how financial institutions manage sensitive information.
The move by NatWest highlights the importance of balancing convenience with compliance and security in workplace communications.
Work-related stress, depression, and anxiety on the rise in Great Britain
The Health and Safety Executive (HSE) has released its annual statistics for 2023/24, revealing a concerning increase in work-related stress, depression, and anxiety among workers in Great Britain. The report highlights the significant impact of these mental health issues on the workforce and the economy.
Key findings:
- An estimated 776,000 workers reported suffering from work-related stress, depression, or anxiety in 2023/24, equating to a prevalence rate of 2,290 per 100,000 workers.
- These mental health issues resulted in the loss of 16.4 million working days, with an average of 21.1 days lost per case.
- The highest rates of work-related stress, depression, or anxiety were found in public administration and defence, education, and human health and social work activities.
- Professional and associate professional occupations reported higher than average rates of these mental health issues.
- The primary factors contributing to work-related stress, depression, or anxiety were workload pressures, including tight deadlines and excessive responsibilities, and a lack of managerial support.
The HSE's report underscores the urgent need for employers to address mental health in the workplace and implement supportive measures to reduce stress and improve employee well-being.
Trade Unions urge government to increase Statutory Sick Pay rate in Employment Rights Bill
A coalition of 24 trade union general secretaries, including leaders from the British Medical Association and Royal College of Nursing, has written to Prime Minister Keir Starmer expressing concerns over the government's statutory sick pay (SSP) reform plans. While welcoming proposals in the Employment Rights Bill (ERB) to extend SSP to low-income workers and remove the waiting period, the unions are calling for a significant increase to the weekly SSP rate.
The current SSP rate is set to rise to £118.75 per week from April 2025, up from the current £116.75. However, the unions argue that the proposed increase is insufficient for workers to recover safely from illness. The letter requests a ministerial meeting to discuss strengthening SSP to align with rates in other OECD countries. The unions emphasize the need for a comprehensive plan to address SSP within the forthcoming ERB.
'Charter for Fair Pay' to address income inequality
The High Pay Centre, in collaboration with academic experts, has published a comprehensive 'Charter for Fair Pay' aimed at reducing income inequality and enhancing worker rights in the UK. The charter outlines ten key measures across four areas: employment rights, corporate governance, investment and stewardship, and transparency.
Key recommendations highlight the need to effectively implement the upcoming Employment Rights Bill, introduce elected worker directors on company boards, revise the legal duties of company directors, and expand pay ratio reporting. These proposals aim to empower workers, encourage dialogue, and enhance transparency, leading to fairer pay outcomes negotiated between employers and employees, rather than relying on direct government intervention.
Increase in arrests for illegal working
The Home Office has reported a significant rise in arrests for illegal working, following intensified efforts to target rogue businesses. Since the new government took office in July, the number of illegal working visits has increased by 34%, and arrests have risen by 25% compared to the same period last year.
From 5 July to 31 October 2024, Immigration Enforcement teams conducted 3,188 visits, resulting in 2,299 arrests. This is a notable increase from the 2,371 visits and 1,836 arrests during the same period in 2023. The crackdown has focused on industries such as nail bars, supermarkets, car washes, and construction.
Home Secretary Yvette Cooper highlighted the government's commitment to reducing net migration, enhancing border security, and restoring order to the asylum system. The new measures include increased international collaboration to tackle smuggling gangs and prevent illegal crossings.
Government launches Business Growth Service to support SMEs
The UK government has announced the launch of the Business Growth Service, aimed at making it easier and quicker for small and medium-sized enterprises (SMEs) to access government advice and support. This new service, unveiled by the Business Secretary to mark Small Business Saturday, is designed to streamline the support landscape for small businesses, which many find fragmented and complex.
The Business Growth Service will offer a comprehensive, UK-wide support system with a revamped web platform set to launch in the first half of 2025. It will work in partnership with small businesses, local and devolved governments, ensuring locally led delivery. Inspired by successful international business support agencies, this service is a key part of the upcoming Small Business Strategy.
The initiative aims to reduce the administrative burden on small business owners, who currently spend over 33 hours a month on internal business admin. The government has also announced other measures to support SMEs, including tackling late payments, reforming business rates, revitalizing high streets, and boosting small business exports.
Steep decline in permanent staff placements
The latest KPMG and REC, UK Report on Jobs survey, compiled by S&P Global, indicates a significant deterioration in the UK labour market during November. The number of permanent staff placements fell at the steepest rate since August 2023, driven by reduced demand for staff and uncertainty following the late October government Budget. Recruitment consultants reported that many firms are reassessing their staffing needs and pausing recruitment activities.
Permanent salary growth remained modest, largely unchanged from October's 44-month low, due to higher candidate availability and reduced demand. Temporary staff billings also saw a fifth consecutive decline, although the rate of decline eased slightly compared to previous months.
The survey highlighted a sharp and accelerated drop in vacancy numbers, the greatest recorded in over four years. The availability of staff increased, with reports of growing redundancies contributing to the rise.
Regional variations showed the steepest decline in permanent placements in the South of England, while the North of England led the reduction in temporary billings. The Executive/Professional sector experienced the most significant contraction in vacancies.
Seasonal recruitment has taken a hit, with job postings for seasonal roles decreasing by 39% compared to last year. Although there are more jobseekers seeking short-term employment, the total number of job postings is still 14% lower than pre-pandemic levels.
ABI progress report on DEI blueprint
The Association of British Insurers (ABI) has published an update on its Diversity, Equity, and Inclusion (DEI) blueprint, initially launched in November 2022. The report highlights significant strides in data collection and representation within the insurance and long-term savings industry.
Key findings:
- Over half (51%) of firms collected social mobility data in 2023, up from 33% in 2022.
- Women in senior management and director roles increased from 29% to 32%, while board-level representation remained stable at 32%. However, representation at the manager level slightly decreased from 47% to 46%.
- There was an increase in staff from mixed or multiple ethnic groups and Asian or Asian British backgrounds at most seniority levels. Overall ethnic minority representation reached 11%.
- 53% of firms now offer insurance-specific apprenticeship schemes, a 5% increase from 2022, despite a 13% reduction in total apprenticeship starts.
The ABI emphasizes the need for a nuanced approach to improving representation of specific ethnic minority groups. This progress report underscores the industry's commitment to fostering a diverse and inclusive workforce.
Read more – December 2024
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