We round up the latest employment news.
High Court greenlights judicial review of strike law
The High Court has granted the Public and Commercial Services Union (PCS) the right to challenge the government's minimum service levels legislation through a judicial review. The PCS, representing around 185,000 civil servants, argues that the law infringes on workers' rights under Article 11 of the European Convention on Human Rights.
The Strikes (Minimum Service Levels) Act 2023 came into force on 20 July 2023 and gives the government powers to make regulations to set minimum service levels in specified sectors during strikes.
TUPE 2006 reforms and plans to abolish European Works Councils framework
The Department for Business and Trade (DBT) has initiated a public consultation on proposed changes to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE 2006), alongside plans to dismantle the legal framework for European Works Councils.
The proposed amendments to TUPE 2006 aim to:
- Specify that only employees are protected rather than a wider class of workers; and
- Eliminate the requirement to divide employees' contracts among multiple employers in instances where a business is transferred to more than one new entity.
The deadline for submitting responses is Thursday 11 July 2024.
Government announces call of evidence on fit note reform
The Department for Work and Pensions (DWP) has announced a call for evidence to explore reforming the fit note process to support those with long term health conditions to access timely work and health support.
The call for evidence is part of a wider suite of activity to reform the fit note and will act as a prelude to a full consultation on specific policy proposals which will be launched later this year.
This call for evidence closes at 11.59 pm on Monday 8 July 2024.
New report reveals drop in workplace mental health-related costs
According to a recent report by Deloitte, UK employers have benefitted from an 8% reduction in costs related to poor mental health among employees. The study, which surveyed 3,156 working adults, reveals a decrease in absenteeism, presenteeism, and labour turnover costs in 2022-2023, amounting to £51 billion, down from £55 billion in the previous year.
The report also estimates that the impact of children's mental health on working parents costs employers around £8 billion.
Despite the overall improvement in workers’ mental health:
- 24% of workers reported being diagnosed with conditions such as depression or anxiety
- 63% reported experiencing at least one sign of burnout, such as fatigue, detachment from their work, or a decrease in job performance
- 6% said that they intended to quit their job in the upcoming year and 11% said they had already left their jobs: 59% attribute this decision to mental health and wellbeing concerns, either partially or entirely.
Unemployment hits seven-month peak
The UK's labour market is facing a period of turbulence, according to the latest figures from the Office for National Statistics (ONS). The data, covering January to March 2024, shows that unemployment rates have hit a seven-month peak at 4.3%, while economic inactivity has risen to 22.1%.
Job vacancies have seen a significant drop, with 26,000 fewer positions available, marking the 22nd consecutive quarterly fall. The decline was observed across various sectors, notably in information and communication, as well as manufacturing. Despite this, the number of vacancies remains higher than the pre-pandemic average.
Earnings have seen an uptick, with regular pay excluding bonuses growing by 6%, and total pay, including bonuses, increasing by 5.7%. However, when adjusted for inflation, the growth figures stand at 2% for regular pay and 1.7% for total pay.
CIPD urges employers to recruit ex-offenders
The Chartered Institute of Personnel and Development (CIPD) has released comprehensive guidance aimed at encouraging businesses to hire individuals with past convictions. The CIPD highlights the dual benefits of addressing talent shortages and promoting societal rehabilitation through such inclusive hiring practices.
There are approximately 2.3 million UK residents with a conviction, a quarter of whom are of working age. Despite the stigma often associated with their past, employers who have embraced this workforce segment report commendable job performance, loyalty, and retention rates.
Treasury Committee calls for action against workplace sexism in financial sector
The Treasury Committee has voiced concerns over the slow progress in combating sexism and bullying within the financial services sector. Their report, Sexism in the City, reveals a disturbing level of misogyny and a culture that stifles female advancement.
Despite the committee's call for sweeping reforms, including a total ban on non-disclosure agreements (NDAs) in harassment cases, the government remains noncommittal.
The report also advocates for enhanced whistleblower protections, a prohibition on salary history inquiries by prospective employers, and a legal mandate for salary ranges in job advertisements. The government has said that there is an ongoing review of the whistleblowing framework.
Government questions UK finance watchdog's diversity targets
UK business and women minister Kemi Badenoch has expressed concerns over the Financial Conduct Authority's (FCA) plans to mandate diversity targets within financial firms. Last year, the FCA, along with the Bank of England's Prudential Regulation Authority (PRA) proposed guidelines aimed at addressing issues of sexual harassment and bullying, as well as setting targets for diversity and inclusion.
Badenoch, speaking at a conference hosted by TheCityUK, a financial industry body, criticised the proposed mandate on equality quotas, suggesting that such measures could be counterproductive.
The FCA's proposal has also faced scrutiny from the Treasury Select Committee, which recommended that regulators should instead ensure that firm leadership takes greater responsibility for diversity and inclusion, rather than imposing extensive data reporting and target setting.
TUC wants the law to protect workers from AI
The Trades Union (TUC) has drafted a bill aimed at regulating the use of artificial intelligence (AI) in the workplace. The proposed legislation seeks to safeguard employees against unfair dismissal and discrimination that may arise from AI-driven decision-making processes.
The Artificial Intelligence (Regulation and Employment Rights) Bill applies to ‘high risk’ decision making and, if enacted, will require employers to:
- Carry out detailed AI risk assessments of AI decision making, with rolling 12 month reviews
- Break open the ‘black box’ to ensure that workers understand how AI operates
- Give staff the right to have a human review AI decision making, and to provide protection for staff dismissed by AI.
This Bill has not been presented to parliament and will need a sponsor to proceed. However, the House of Lords has started the process of debating another AI Bill: Artificial Intelligence (Regulation) Bill which is sponsored by a Conservative peer.
Workplace stress on the rise for UK women
Nearly half of working women in the UK are experiencing higher stress levels compared to last year, with return-to-office policies and long hours being significant contributors. Deloitte Global's latest report, 'Women @ Work: A global outlook', surveyed 5,000 women across ten countries, revealing that 47% of UK participants report increased stress.
The report indicates an improvement in hybrid work experiences, with fewer women feeling excluded from important meetings or decisions. However, the struggle for flexibility persists, especially as 50% of UK women have been asked to return to the office either full-time or on specific days.
27% of women returning full-time to the office report a negative impact on their mental health, and 24% believe it has decreased their productivity. Additionally, many have sought to reduce their working hours, and some have had to relocate closer to their workplaces.
The stigma surrounding mental health discussions at work remains, with 65% of women saying they are uncomfortable disclosing mental health issues as a reason for taking time off. This is particularly pronounced among women from ethnic minority backgrounds, with only 20% feeling comfortable discussing these matters with their employers.
Prime Minister announces welfare reform to tackle economic inactivity
In a recent speech, the Prime Minister has said that the government will introduce a comprehensive package of welfare reforms aimed at addressing the sharp increase in economic inactivity and changing the benefit system to ensure that it targets those who need it most.
It plans to:
- Review the current fit note system
- Test shifting responsibility for issuing fit notes from GPs to specialist work and health professionals
- Help people, particularly with mental health conditions, to get back into work.
Read more – May 2024
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