We round up the latest employment news.
New statutory rates in force from April 2025
The government has announced that the following statutory payments will increase from April next year:
- The weekly rate of SSP will increase to £118.75 (currently £116.75)
- The weekly rate of SMP, maternity allowance, SPP, ShPL pay and parental bereavement pay will be £187.18 (currently £184.30)
- The lower earnings limit (the weekly earnings threshold for qualifying for all of these payments other than maternity allowance) will be £125 - an increase of £2 from the current rates. The lower earnings limit for maternity allowance will remain at £30 a week.
The new rates represent an increase of 1.7% in line with CPI to September 2024. The figures, and the date from which they will apply, will need to be formalised in an Order, which must be laid before Parliament.
ONS publishes 2024 gender pay gap data
The Office for National Statistics (ONS) has released its annual gender pay gap survey.
Key findings:
- The gender pay gap for full-time employees has decreased by approximately 25% over the last decade. In April 2024, it stood at 7%, down from 7.5% in 2023
- The pay gap is more pronounced for employees aged 40 and over compared to those under 40. Notably, the gap increased for those aged 50 to 59, rising from 11.1% in 2023 to 12.1% in 2024
- Higher earners experience a larger pay gap. For full-time employees in the 90th percentile, the gap is 15.5%, compared to 7.1% for median earners and 2.7% for those in the 10th percentile
- The gender pay gap for full-time employees is higher in all English regions than in Scotland, Wales, and Northern Ireland.
The ONS's analysis highlights ongoing challenges in achieving pay equity, particularly for older and higher-earning employees.
Council given green light to adopt a four-day working week
Councils in England will have the right to adopt a four-day working week after the government dropped concerns raised by the previous government into the four day working week trial adopted by South Cambridgeshire District Council.
The new government has said that councils are "rightly responsible for the management and organisation of their own workforce" and can manage their workforce as they see fit.
South Cambridgeshire District Council say that the four-day working week trial has led to improved staff retention, job satisfaction, and productivity. It also saved the council around £371,500 in a year, mostly on staff agency costs.
Neurodivergent adults face hiring discrimination
A recent survey conducted for Zurich Insurance has revealed that half of neurodivergent adults say they have experienced discrimination when applying for jobs. The survey, which included 1,000 neurodivergent adults, highlighted significant challenges faced by individuals with conditions such as autism, dyslexia, and ADHD.
The survey found that:
- 31% of respondents had their job applications rejected after disclosing a neurodivergent condition
- 28% were turned down for ‘subjective reasons’, such as their communication style or perceived inability to fit in with a team
- 21% said that they had been laughed at due to their condition
- 25% said that recruiters ignored them after they told them about their conditions; and
- 47% said they felt unable or unwilling to disclose their neurodiversity during the hiring process because they were worried about the stigma attached to it and that they may face discrimination.
These barriers have had a profound impact on candidates, with 95% reporting damage to their mental health and 96% saying their confidence has been eroded. Furthermore, 92% believe these barriers have harmed their earning potential. Despite legal obligations under the Equality Act 2010, 42% of neurodivergent adults said they were not offered any adjustments during the recruitment process. Where adjustments had been made, the most helpful were being given clear explanations about the interview and limiting job requirements to those that are essential to the job.
On a positive note, 63% of respondents said that workplace conditions for neurodivergent individuals have improved.
Social Mobility Foundation calls for mandatory class pay gap reporting
The Social Mobility Foundation has called on the government to introduce mandatory class pay gap reporting for all large employers. This call follows research showing that workers in higher managerial, administrative, and professional occupations from working-class backgrounds are paid an average £6,287, or 12%, less per year than their more privileged counterparts in the same roles.
The research also highlights that professional women from working-class backgrounds face a double disadvantage, with a class pay gap of £6,855 compared to women from professional-managerial origins in the same occupation.
The class pay gap varies significantly by ethnic group, with the largest gap observed between Indian workers from working-class backgrounds and those from professional-managerial origins, amounting to £6,813 per year.
Statistics on employment of disabled people
The Department for Work and Pensions (DWP) has released new statistics on the employment of working-age disabled people in the UK, based on data up to March 2024 and June 2024.
The report reveals that:
- There are 5.5 million disabled people in employment, with a disability employment rate of 53%, compared to 81.6% for non-disabled people
- The disability unemployment rate stands at 6.9%, while the economic inactivity rate is 43.1%, significantly higher than the 15.4% for non-disabled individuals; and
- The number of working-age disabled people has increased by 580,000 from the previous year, and the disability employment gap has decreased by 0.6% to 28.6%.
The report also found that nearly one in four of the working-age population is classified as disabled.
Acas publishes updated guidance on Gender Reassignment discrimination
The Advisory, Conciliation and Arbitration Service (Acas) has released updated guidance on gender reassignment discrimination.
It outlines the legal protection available to people who are protected under the gender reassignment provisions and includes detailed examples of what might constitute discrimination, harassment, and victimisation based on the protected characteristic of gender reassignment.
Family-friendly and flexible work practices Benchmark Report 2024
Working Families, the UK's national charity for working parents and carers, has released its 15th Benchmark Report. This report allows employers to measure their family-friendly and flexible work culture, identify areas for improvement, and compare their progress with other top employers in the UK.
Key findings:
- 62% of leading employers said that over three-quarters of their staff work flexibly
- 54% said that flexibility reduced business travel costs, 51% made savings on building expenses, and 42% reported increased productivity.
- 90% train their managers on how to manage flexible teams
- 55% offer paid carer’s leave, averaging 3.5 days; and
- Only 7% of senior roles are part-time, typically occupied by women, highlighting a gap in flexible senior positions.
A total of 69 employers participated in the Working Families Benchmark 2024. This group includes a varied mix of both large and small UK employers from a broad spectrum of sectors.
ICO publishes guidance on AI tools in recruitment
The Information Commissioner's Office (ICO) has released a comprehensive report following an audit of AI tools used in recruitment. This audit, conducted between August 2023 and May 2024, evaluated various AI-powered tools designed for sourcing, screening, and selecting candidates.
The audit revealed significant issues with data protection compliance, including the potential for discrimination and excessive data collection. It also showed that many candidates were unaware of how their data was being processed, leading to concerns about privacy and informed consent. The audit highlighted that some AI providers incorrectly identified themselves as data processors rather than data controllers, leading to non-compliance with data protection principles.
The ICO has distilled its findings into seven key recommendations for organisations using AI in recruitment:
- Ensure AI processes personal information fairly, addressing bias and accuracy
- Provide clear information to candidates about how their data is used
- Collect only the minimum data necessary for the AI's purpose
- Conduct Data Protection Impact Assessments early in AI development
- Clearly define and document whether the AI provider is a controller or processor
- Recruiters must set clear processing instructions for AI providers; and
- Identify and document the lawful basis for processing personal data.
The ICO's guidance aims to help organisations navigate the complexities of using AI in recruitment and comply with data protection laws. For more detailed information, the ICO is hosting a webinar on January 22, 2025.
Labour market enforcement strategy 2024/25 published
The Director of Labour Market Enforcement (DLME) has released the Labour Market Enforcement Strategy for 2024/25. This strategy outlines key themes and recommendations for improving labour market enforcement across the UK. It includes:
- Enhancing the collection and analysis of data to better understand the nature and scale of risks, particularly for those with protected characteristics
- Strengthening engagement with individuals reporting complaints and improving the understanding of their experiences
- Increasing awareness of enforcement bodies and how they can help by exploring new communication methods, and leveraging AI to enhance compliance
- Promoting compliance within SMEs through growth hubs and ensuring workers receive comprehensive payslips and key information documents
The strategy aims to create a more effective and responsive labour market enforcement system, ensuring better protection for workers and support for businesses.
Home Office publishes guidance on failure to prevent fraud
The Home Office released new guidance on the "failure to prevent fraud" offence, as introduced in the Economic Crime and Corporate Transparency Act 2023. This guidance is aimed at large organisations, including companies, not-for-profits, and incorporated public bodies, to help them comply with the new legal requirements.
The offence applies to large organisations where an employee, agent, subsidiary, or other associated person commits fraud intending to benefit the organisation. Examples include dishonest sales practices and fraudulent activities in financial markets. Large organisations are defined in the Companies Act 2006. To meet that definition they must meet two out of three criteria: have more than 250 employees, make over £36 million in turnover, or have more than £18 million in total assets.
Organisations have a defence if they can demonstrate they have reasonable fraud prevention measures in place.
The guidance outlines six principles organisations should follow to ensure that they are taking reasonable measures to prevent fraud:
- The leadership team must be committed to preventing fraud
- Undertake regular assessments to identify and mitigate fraud risks
- Tailor measures to reflect the level of risk
- Undertake due diligence thorough checks on associated persons
- Set out clear guidelines to staff and provide training on fraud prevention; and
- Evaluate progress on an ongoing basis.
The offence will come into force on 1 September 2025.
Read more – November 2024
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