We round up the latest employment news.
Market standards trend report on ethnicity pay gap in 2023
A recent report examines how a group of FTSE 350 companies have chosen to share their pay disparities by ethnicity. It examines how many companies have voluntarily disclosed their ethnicity pay gaps and whether there are any patterns across different sectors. It also identifies the main difficulties and risks of reporting on ethnicity pay gaps and offers some recommendations for best practice for companies that want to improve in this area.
Key highlights include:
- 20% of annual reports mentioned ethnicity pay gap
- 14% of the companies revealed their ethnic pay gap, with 71% of those making the disclosure for the first time
- The technology sector leads the way in ethnicity pay gap reporting.
Union set to challenge new “anti strike” laws
The Strikes (Minimum Service Levels) Act 2023 came into force last year and gives the government powers to make regulations to set minimum service levels in specified sectors during strikes. So far, the government has imposed minimum service levels in respect of rail, ambulance, and border security services.
The general secretary of the Public and Commercial Services Union (PCS) which represents over 185,000 civil service workers said that it has sent a letter before action to the government, warning that it will seek a judicial review of the minimum service laws. The unions believe that this law violates the right to strike that is protected by Article 11 of the European Convention on Human Rights. The government has 14 days to respond.
Timeline for new immigration changes
The timeline for the skilled worker and family migration routes has been announced in the Statement to the House of Commons.
From 11 March 2024 the following rules will apply:
- Care workers and senior care workers won’t be able to bring their family members to the UK
- Care providers in England will only be able to sponsor migrant workers if they are performing tasks regulated by the Care Quality Commission (CQC)
From 4 April 2024 the skilled worker general salary threshold will increase from £26,000 to £38,000, and the 20% going rate discount for occupations on the Shortage Occupation List will be removed.
From 11 April 2024 the minimum income threshold for family visas will increase from £18,600 to £29,000 (and will increase incrementally to £34,300 and then £38,700).
Labour plans to improve equality for BAME workers
The Labour Party has said that if it gets into government it will extend equal pay rights, that currently only apply to women, to Black, Asian, and Minority Ethnic (BAME) workers. According to the Guardian, the legal right would be phased in to give employers time to adapt to paying all their staff fairly. The change will also cover disabled people.
Insight into workers’ views on pensions, savings, and retirement planning
The Department for Work and Pensions has published a report on engaging with pensions at timely moments which reveals workers’ attitudes towards retirement planning and pensions savings. Key findings are:
- Workers’ awareness and interest in pensions varied depending on their age, with younger people seeing retirement as a far-off goal
- Pension providers could boost engagement by offering relevant information and assistance when people faced financial shifts and/or major life events.
- People ignored pensions when they felt it was too early to think about them, if they lacked knowledge or information about the pension system, and if they had other financial priorities to deal with
- The start of a new calendar and tax year were the best times to send information about pensions, with people preferring to get it once a year
Auto-enrolment thresholds unchanged for 2024/5
The Department for Work and Pensions has recently published a statement which confirms that auto-enrolment thresholds for 2024-25 will remain at the same levels as in 2023-24:
- The automatic enrolment earnings trigger will remain at £10,000.
- The lower earnings limit of the qualifying earnings band will remain at £6,240.
- The upper earnings limit of the qualifying earnings band will remain at £50,270.
FCA sets its sights on stamping out non-financial misconduct
The UK’s Financial Conduct Authority (FCA) is intensifying its efforts to address non-financial misconduct within the financial sector. This includes issues such as sexual harassment, bullying, and discrimination.
Companies will have to supply comprehensive data on recorded incidents to include:
- The number and nature of the incidents
- The origin of the complaints (whether from whistleblowers or other sources)
- The outcomes of these complaints, which could range from warnings to dismissals or no action at all.
The FCA is also interested in finding out whether these incidents resulted in non-disclosure agreements or led to employment tribunals. The data provided by the firms should cover the past three years and specifically highlight incidents involving senior management. The FCA is requesting this information via a formal notice to provide information.
FRC publishes new guidance for UK Corporate Governance Code 2024
The Financial Reporting Council (FRC) has released a new guidance document to help companies apply the UK Corporate Governance Code 2024. The guidance is designed to be targeted, non-prescriptive, and digitally accessible, reflecting the feedback from various stakeholders.
The guidance covers the main sections of the Code, such as board leadership, division of responsibilities, composition, succession and evaluation, audit, risk and internal controls, and remuneration. It also includes a new section on good practice for managing board committees, and references to other reporting or regulatory requirements that may affect companies. The guidance will be updated periodically to reflect any changes in the UK regulatory landscape.
New UK labour market trends
The UK Competition and Markets Authority (CMA) has released a report that analyses the impact of competition and employer market power on UK labour markets. It covers key trends such as hybrid working, gig economy, non-compete clauses, and pay-setting policies.
The report explores how the nature of work is changing due to technological and social factors, and how these changes affect employer market power. For example, hybrid working, which allows workers to split their time between home and office, can increase the pool of potential workers and affect their bargaining power. Similarly, the gig economy, which involves short-term and flexible work arrangements, can offer more choice and flexibility to workers, but also expose them to more uncertainty and lower income security.
The report also supports the government's intention to limit the length of non-compete clauses in employment contracts to three months.
New survey indicates employers are still struggling to recruit suitable candidates
According to the latest quarterly Labour Market Outlook released by the CIPD, there are ongoing difficulties in candidate attraction and recruitment. This conclusion is based on a survey of over 2,000 senior HR professionals. Within the surveyed organisations:
- 38% still have vacancies that are hard to fill
- 21% expect significant challenges in filling their roles in the next six months
- 18% of employers in the public sector expect their employee numbers to decrease, which is double the proportion compared to the private sector (9%)
- One in ten respondents anticipate reducing their headcount within the next three months, with 18% planning to make redundancies
- A third of employers still expect their employee base to grow.
Flexible working more important than pay rise for UK employees
A new survey conducted by payroll and HR software company PayFit has found that almost half of the respondents would reject a 15% pay increase if it meant losing workplace flexibility. The survey also showed that 83% felt that their current employer's flexible working policies needed improvement.
The survey comes ahead of changes to the flexible working regime which come into force on April 2024, and will give employees the right to request flexibility in their working hours, times and locations from the start of their employment.
Age discrimination common at work
According to research by the Centre for Ageing Better, 37% of people in their 50’s and 60’s who experienced age discrimination, said that it happens most often at work.
New expense and benefits rates published
HMRC has published the rates and thresholds for employers for 2024-25.
Read more – February 2024
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