National Sickness Day

‘National Sickness Day’ on 4th February is a  reminder to employers on how best to tackle employee absence.

Absence in the workplace can be expensive for  organisation; according to government research, illness costs the UK around £60 billion per annum. Not only does it impact financially but it can also have a negative effect on organisational culture, leading to staff disengagement and poor morale.  A more recent study revealed that 27% of employees regularly ‘hide’ in the toilets at work to pass the time, collectively earning over £1.3 billion on average per year as they do!!

However some absences are unavoidable due to illness or injury, it is important to identify hidden causes at the outset.

Recurrent poor attendance can often be a symptom of a unknown, underlying problem. Examples include, workplace bullying , stress or family relationships. If you have concerns about an employee’s health or the duration of their sickness, it may also be appropriate to refer the employee to an occupational health therapist.

By identifying underlying issues early, you are more likely to be able to work with your employee to tackle the problem and be identify the most appropriate action.  Demonstrating a caring, flexible but firm approach is likely to result in a more engaged, motivated and loyal workforce – so hopefully you won’t be one of those employers who are paying people to hide in the toilets!

Strategies on improving attendance at work:

  • A clear well communicated  Sickness Absence policy, to set out expectations, which is implemented consistently. With  appropriate procedures for employees to follow if they are late or absent.
  • Train managers in handling difficult conversations, and provide them with a clear support structure, and who to get advice from to help  deal with absenteeism appropriately. Managers should be approachable, so that employees feel comfortable talking to them about concerns. It is important not to make any judgements on whether the absence is ‘genuine’ or not until all the facts identified.
  • Identify trends and reasons for absence. Collecting data on the patterns of employee absence is essential to determining whether absenteeism is a problem in your workplace.
  • Conduct return-to-work interviews every time. Research indicates that they are regarded as one of the most effective tools for managing and reducing short-term absenteeism.
  • Carefully consider for  medical grounds or to improve  work life balance, offering flexible options;  such as working from home, and/or flexible working.  Allowing employees more control over their schedules can drastically reduce absenteeism.
  • Consider implementing ‘Duvet Days’. These allow staff to take a maximum number of days each year at short notice and can help reduce absenteeism and improve morale.
  1. Ensure all employees know what support is available to them and how to access it.

With the right measures and controls, absenteeism can be successfully reduced and managed appropriatley

April 2019 Employment Law changes

April 2019 Employment Law changes

Organisations will need to abide by the latest set of national minimum wage rates for all pay periods beginning on, or after, 1 April. These new rates are as follows:

AgeFrom 1 April 2018From 1 April 2019
25+£7.83 an hour£8.21 an hour
21-24£7.38 an hour£7.70 an hour
18-20£5.90 an hour£6.15 an hour
Over compulsory school age but not yet 18£4.20 an hour£4.35 an hour
Apprentices under 19, or over 19 and in first year of the apprenticeship£3.70 an hour£3.90 an hour

The amount of statutory sick pay qualifying employees are entitled to will increase from 6 April:

PaymentFrom 6 April 2018From 6 April 2019
Statutory sick pay (SSP)£92.05£94.25

Whereas the amount individuals will be entitled to for statutory maternitypaternityshared parental and adoption pay will also increase beginning on 7 April:

PaymentsFrom 1 April 2018From 7 April 2019
Statutory maternity pay (SMP)£145.18£148.68
Statutory paternity pay (SPP)£145.18£148.68
Statutory shared parental pay (ShPP)£145.18£148.68
Statutory adoption pay (SAP)£145.18£148.68

In line with this, the lower earnings limit which individuals must meet in order to qualify for statutory payments such as SSP or SMP will increase on 6 April, rising from £116 to £118.

From 6 April, changes to the auto-enrolment pension system mean organisations will have to contribute 3 percent (up from 2 percent) and employees have to contribute a minimum of 5 percent (also up from 3 percent). These increases are a legal requirement; a failure to increase contributions appropriately could lead to a daily fine and being publicly named for non-compliance.  

Changes to the way organisations issue payslips will come into force on 6 April. For pay periods beginning on or after this date, the right to receive an itemised payslip will be extended to those with ‘worker’ status for the first time. Where an employee or worker is paid on an hourly basis, payslips must show the total number of hours paid for. Individuals will have the right to bring a claim to an employment tribunal in the event that their employer is in breach of this requirement.

From 1 April organisations who pay into the apprenticeship levy will be able to transfer a greater portion of their funding across their supply chain as this will increase from 10 percent to 25 percent. Smaller, non-levy paying, employers who participate in co-investment will have to contribute less from 1 April as the government will increase their contributions from 90 percent to 95 percent of the overall cost of the apprenticeship. The amount employers will have to pay will decrease accordingly from 10 percent to 5 percent. 

Employment Law Update

Settled Status for EU workers

As part of the government’s post-Brexit plans European workers currently living in the UK will be able to apply for settled status in 2019, allowing them to remain indefinitely following the end of the transition period in 2021. To attain settled status individuals must be able to prove they have been living in the UK for 5 years by 31 December 2020.  Meanwhile, those who fail to meet this requirement can apply for temporary status, allowing them to remain until they have accrued enough residency to be granted settled status. For those who are keen to provide their EU workers with confirmation of these rights, we can create you a letter outlining the UK’s settlement scheme.

Gender pay gap reporting 

Private sector organisations with 250 or more employees will again be required to publish their gender pay gap figures on 4 April 2019, whilst public organisations will need to do the same by 30 March. Although many organisations will be reporting for the second time, this year will be the true test as figures are expected to be heavily scrutinised in order to determine whether efforts to address any significant pay disparity highlighted in the previous year have been successful.

At the same time, 2019 may also be the year mandatory ethnicity pay gap reporting is introduced.

Increase in NMW rates 

National minimum wage (NMW) rates will again increase for all workers from 1 April 2019. As part of these new rates workers aged 25 and over, and therefore eligible for the national living wage (NLW), will benefit from an increase of 4.9 per cent, with hourly rates rising from £7.82 to £8.21.

Statutory sick pay and family friendly rates 

1 April 2019 will also see an increase to the lower earnings threshold and weekly pay for those who receive statutory sick pay (SSP). Individuals must receive average weekly earnings of £118 or greater to qualify for SSP which will then entitle them to payments of £94.25 per week. The statutory weekly rates for maternity, paternity, adoption and shared parental pay will also increase at this time, rising from £145.18 per week to £148.68 (or 90 per cent of the employee’s average weekly earnings if this figure is lower than the statutory rate).

Payslips 

Organisations will also need to review, and potentially change, the way they issue payslips in 2019 as from 6 April onwards the legal right to a payslip will be extended to include those who are recognised as ‘workers’. Furthermore, a new requirement means organisations will be obliged to include the number of hours worked on payslips for staff whose wages vary depending on the amount of time worked.

Auto-enrolment contributions 

Additionally, from 6 April the minimum contributions for auto-enrolment pension schemes will increase for both employers and employees. Under these new requirements employers must contribute a minimum of 3 per cent of an eligible worker’s pre-tax salary to their pension pot, with the individual contributing 5 per cent themselves.

HR GDPR

HR GDPR

We have updated our contracts of employment and template Employee Handbook to reflect the introduction of the General Data Protection Regulation. Please let us know if need to update your documents.

EAT gives landmark judgement on shared parental pay

This month, the Employment Appeal Tribunal (EAT) has handed down its judgement on a direct sex discrimination case involving shared parental pay.

In other case law, the Supreme Court held there was an implied term in all contracts of employment as to the point that a notice period begins.

Shared parental pay was not direct sex discrimination
The Employment Appeal Tribunal (EAT) has recently decided that paying women on maternity leave more than men on shared parental leave was not direct sex discrimination.

The ruling was based on the determination that a woman who has given birth is entitled to special treatment in connection with the childbirth that cannot be compared to a man on shared parental leave.

November Budget

Philip Hammond delivered the first November Budget for 21 years on the 22 November 2017. Although expected to be a duller affair than normal, there were a number of employment initiatives outlined that organisations need to be aware of.

The Chancellor confirmed the minimum wage increases that will take effect from April 2018.

National living wage, the rate for workers aged 25 and over, will increase by 4.4 per cent from £7.50 to £7.83 an hour.

Over a year, this increase will give a full time worker a £600 pay increase.

The government has also accepted the Low Pay Commission’s recommendations for national minimum wage (NMW) increases. From April 2018, the following increases will apply:

Workers aged 21-24 – NMW will increase from £7.05 to £7.38 an hour
Workers aged 18-20 – NMW will increase from £5.60 to £5.90 an hour
Workers aged 16-17 – NMW will increase from £4.05 to £4.20 an hour
Apprentice rate – will increase from £3.50 to £3.70 per hour
The Budget was used to repeat the government’s commitment to deliver three million apprenticeship starts by 2020 through the operation of the apprenticeship levy. The levy, introduced in April 2017, requires organisations with an annual turnover of more than £3 million to pay 0.5 per cent of their pay bill in to a digital levy account. This money is then available to spend on apprenticeship training for 24 months before expiring.

The Chancellor announced the government will review the flexibility levy payers have to spend their money. Although no further details were announced, this may look at extending the time organisations have to spend the money in their levy account or improve the way group structures can share their levy payments.

A new National Retraining Scheme will be introduced. The government will work in partnership with the Trade Union Congress and the Confederation of British Industry to develop a scheme that supports workers with retraining during their working lives. It will provide the opportunity to gain skills that are necessary for future workplaces. At first, the scheme will focus on certain sectors and will initially look to provide retraining on construction and digital skills.

In the Budget document, it was further announced that the government will publish a discussion paper in response to Matthew Taylors review on ‘Modern working practices’. This paper will explore the options available to clarify employment status tests for both employment rights and tax.

Mindfulness in the workplace – taking a grassroots approach

One of the workplace wellbeing success stories of recent years has been the rise to prominence of mindfulness. A form of meditation that has moved well beyond its Buddhist origins, mindfulness is widely practised all over the world. Much more than a celebrity lifestyle fad, it has been embraced by bastions of the UK establishment. Oxford and Bangor Universities have been researching the impact of mindfulness since 2008 – adding to a substantial evidence base confirming its effectiveness.

In political circles, a Mindfulness All Party Parliamentary Group has explored how mindfulness can contribute to society more broadly, resulting in it being introduced into schools and prisons. For good measure the MPs created a policy institute; The Mindfulness Initiative.

This has produced an influential business case for mindfulness in UK workplaces, to encourage and support companies interested in making it available to employees.  A great many have done so.

Google, IKEA, General Motors and the insurance giant Aetna are some of the major corporations that have embraced mindfulness. It has gained traction in the financial sector too, with Lloyds, Goldman Sachs, RBS, Bank of England, Credit Suisse, Deutsche Bank, and HSBC among the banks that have offered it to their staff.

With so many large corporations on board, it’s fair to say that mindfulness has gone mainstream.

But there is no right way to bring mindfulness into the workplace.

What is important is that it is introduced in a way that aligns with the culture and values of the organisation. Some businesses offer it to all employees on a voluntary basis.

In others the focus is on senior leaders through the introduction of a “Mindful Leadership” programme. Mindfulness can also be rolled out through apps that are offered for free or as part of an employee benefits package.

An employee-led approach is much less common.

This typically involves the business supporting mindfulness initiatives that develop naturally from the enthusiasm of employee-led groups.

These spread gradually through the organisation as awareness and commitment widens. In some cases the extent of company support amounts to little more than providing room space for practice but it can extend to more sophisticated approaches.

One particularly innovative example of this has taken place at HSBC. There are useful lessons for other businesses in how they have gone about it, so I’m going to look at it in some detail.

From small beginnings

Mindfulness at HSBC was initiated through the efforts of Mari Lewis – a senior IT Architect for the bank in Sheffield, who practised mindfulness regularly.

She enjoyed the benefits herself and wanted to establish whether there was appetite among her colleagues to form a regular group. In 2012, she solicited interest in her workplace, through an onsite lunchtime stall, signing up 15-20 staff. Mari, an experienced mindfulness practitioner, led the sessions and the interest grew.

Five years on, 350 employees have been through her Sheffield programme.

In 2014 Mari, along with a colleague Jane Daniels, oversaw the development of an employee-led mindfulness network, and the creation of a mindfulness intranet site. A launch event for the network was held at the bank’s Canary Wharf HQ, introduced by one of the bank’s global heads, with a special interest in mental health.

With 500 employees participating, many dialling in from HSBC sites round the world- at the time, this may have been one of the largest ever-corporate mindfulness events,

Soon mindfulness sessions were being set up at other HSBC sites across the UK where experienced volunteers were available. Support for the developing network was gained from the UK bank’s Head of HR. Since then there have been many mindfulness events, often involving external speakers. The network membership has now grown to over 1000 employees.

But more was needed if mindfulness was going to succeed long-term. An internal leadership project group raised the profile of mindfulness further, gaining support and funding from the UK Head of Benefits and Reward, who holds responsibility for the HSBC UK’s new wellbeing strategy.

This financed a multi-stranded mindfulness programme that will be rolled out across the bank through the remainder of 2017. This includes access to a mindfulness app and the training of 25 mindfulness champions. The use of a ‘train the trainer’ approach will ensure the supply of future champions is sustainable.

The programme also includes, at HSBC’s request, research into its impact.

To embed it further, mindfulness has also been introduced, as an option, into the Banks’s “mental health pathways”, which is the process by which mental health cases are managed at HSBC.

This also includes occupational health and the private health insurance provider.

Following an impressive re-launch event in July 2017, the process of recruiting the champions is underway, to take mindfulness at the bank to the next level.  In September 2017 HSBC received a Parliamentary award in recognition of the achievements of the mindfulness network

Mindfulness from the bottom up 

What impresses me most about this approach is that it has evolved organically through the commitment of dedicated enthusiasts, fired by a wish to communicate the benefits of mindfulness to others.

Spread in this way, the introduction will only succeed if it elicits enough interest from colleagues.

And because it is initiated by employees, it is hard to argue that mindfulness is being introduced for faddish reasons, or that it is being hijacked to suit corporate ends – a frequent criticism of corporate programmes.

Finally, whilst large organisations, might baulk at commissioning mindfulness training for a workforce of many thousands, employee-led rollouts are easily scalable and relatively inexpensive, once a cohort of internal trainers is in place.

Mindfulness in UK businesses is on an upward curve.

There are many different ways it can be offered in the workplace. What HSBC has done seems both innovative and cost effective and demonstrates that sometimes wellbeing programmes succeed best when they originate with the staff themselves.

Read more about how mindfulness has taken off among UK businesses and the different approaches they are taking to make it available to employees, in Bank Workers Charity’s whitepaper Mindfulness at Work: On an Upward Curve.

 Paul Barret

Statutory rates

Statutory maternity pay (SMP):

First six weeks – 90 per cent of employee’s average weekly earnings.

From 3 April 2016: Remaining weeks – £139.58 or 90 per cent of employee’s weekly earnings if this is lower
From 2 April 2017: Remaining weeks – £140.98 or 90 per cent of employee’s weekly earnings if this is lower


Statutory adoption pay (SAP):

First six weeks – 90 per cent of employee’s average weekly earnings.

From 3 April 2016: Remaining weeks – £139.58 or 90 per cent of employee’s weekly earnings if this is lower
From 2 April 2017: Remaining weeks – £140.98 or 90 per cent of employee’s weekly earnings if this is lower


Statutory paternity pay (SPP):

From 3 April 2016: Two weeks – £139.58 or 90 per cent of employee’s weekly earnings if this is lower.
From 2 April 2017: Two weeks – £140.98 or 90 per cent of employee’s weekly earnings if this is lower.


Statutory shared parental leave pay:

From 3 April 2016: £139.58 or 90 per cent of employee’s weekly earnings if this is lower
From 2 April 2017: £140.98 or 90 per cent of employee’s weekly earnings if this is lower.

National Living Wage

From 1 April 2016, a new National Living Wage for workers aged 25 and over was introduced. In November 2016, the government announced new rates for all five categories of worker, to take effect from April 2017. For more information see our Recent and forthcoming legislation page.

From 1 October 2016:
Workers aged 25 and over: £7.20 an hour
Workers aged 21 and over: £6.95 an hour
Development rate for workers aged 18-20: £5.55 an hour
Young workers rate for workers aged 16-17: £4.00 an hour
Apprentice rate: £3.40 an hour

From 1 April 2017:
Workers aged 25 and over: £7.50 an hour
Workers aged 21 and over: £7.05 an hour
Development rate for workers aged 18-20: £5.60 an hour
Young workers rate for workers aged 16-17: £4.05 an hour
Apprentice rate: £3.50 an hour

Statutory sick pay

From 6 April 2016: £88.45
From 6 April 2017: £89.35

Redundancy pay

For details of statutory redundancy payments and guaranteed pay see the Compensation limits listed above.

The GOV.UK website has an interactive tool to help calculate redundancy pay.

National Minimum Wage and National Living Wage

1 Apr 2017 – National Minimum Wage and National Living Wage

The following NLW and NMW hourly rates apply from 1 April 2017:

  • Workers aged over 25 years (NLW): £7.50.
  • Workers aged 21 to 24 years: £7.05.
  • Workers aged 18 to 20 years: £5.60.
  • Workers aged 16 to 17 years: £4.05.
  • Apprentices (under 19 years, or in the first year): £3.50.

From 2017, changes to both the NLW and NMW rates will take place in April.