HR and employment law update

Addressing wellbeing becomes more important with 10-year high in absence rates

UK sickness absence has reached a 10-year high, with employees absent an average of 7.8 days over the past year, according to research by the CIPD and Simplyhealth. This trend underscores the urgency for employers, particularly smaller organisations, to reassess their approach to employee wellbeing. The study identified stress, significantly stemming from heavy workloads and management style, as a prime factor for both short and long-term absences, with 76% of respondents citing it as a reason for time off.

In light of these findings, organisations are encouraged to view wellbeing as a "shared responsibility" between employer and employee, rather than solely an individual’s concern. Adopting a broader approach in this way, going beyond individual-level interventions like employee assistance programmes (EAPs), and encompassing more comprehensive strategies addressing organisational culture and workload management, can yield better results.

This perspective shift is especially crucial for small businesses, where resources may be limited but the impact of each employee’s wellbeing is significant. By fostering a collaborative approach to wellbeing, employers can better address the root causes of stress and absence, thereby promoting a healthier, more productive working environment.

Are you being too cagey about flexible working?

Research by recruitment firm Hays reveals that 37% of workers find that their contracts do not include provisions for hybrid or remote working, despite 84% considering such arrangements essential.

The lack of transparency around flexible working options is identified as a material risk for attracting talent. It’s indicated that professionals, particularly those prioritizing flexibility, may readily shift to organisations that provide contractual assurance of flexible working patterns.

It seems many employers are happy to enable flexibility and hybrid working but have an aversion to putting that commitment in writing. But the absence of clear flexible working agreements in contracts could foster mistrust with existing staff and affect organisational culture and retention, as well as proving a problem when it comes to recruitment.

Given the recent approval of the Flexible Working Act, which allows employees to request flexible working from the onset of employment and is set to be implemented next year, taking that step to committing flexibility in writing (whilst perhaps incorporating flexibility for the business too), is something all small businesses need to be considering.

Legal

“Damning” reference was victimisation in “rushed” dismissal

A teacher who didn't return to work after sick leave due to work-related stress, was ruled by the Manchester Employment Tribunal to have been unfairly dismissed and victimised. The school dismissed him before his return from a doctor-certified sick leave, resulting in a “rushed” decision, which amounted to "procedural unfairness."

The judge highlighted an “85% chance” that a dismissal would have been fair anyway, due to the claimant’s refusal to attend meetings. This reduced compensation but clearly avoiding the claim at all would have been a better result, so hasty decisions should be avoided.

Post-dismissal, the claimant received a “damning” reference, which was deemed victimisation. The case had dragged on for a long period by dismissal, and the headteacher was clearly frustrated especially given the claimant’s lack of cooperation. However she allowed the frustration to come through in a reference which came across as punitive, a useful reminder that regardless of what has gone before, employers should provide truthful, accurate, and unbiased references, avoiding anything that could be perceived as retaliatory actions.

Failure to continue exploring alternatives during redundancy notice was unfair dismissal

In a significant ruling, a Croydon tribunal has determined that a farm shop worker was unfairly dismissed as part of a redundancy process after initially refusing an alternative role, citing anxiety about driving to a new location.

After some back and forth, and realising that refusing a suitable alternative meant losing her redundancy pay, the claimant then changed her mind and decided she would like to accept the trial. By this time the employer had started looking for someone else, and did not allow her to go ahead, a decision the tribunal found to be unreasonable.

This highlights the importance of continued consultation and exploring alternatives throughout an employee’s notice period, and serves as a reminder for small business owners to remain flexible and communicative, especially when employees express willingness to reconsider initial decisions.

It does bring a level of uncertainty in terms of not being able to recruit externally to a vacant role, so perhaps consider payment in lieu of notice, particularly where there is a long notice period, so that uncertainty doesn’t drag on too long for all involved.

Other stuff

A study by Unmind, surveying 2,000 UK adults, reveals that financial stress is notably impacting workplace performance, causing 27% of employees to experience brain fog and make more errors. A third of the participants attributed the ongoing financial crisis to their diminished ability to concentrate at work.

New data from a Randstad UK survey indicates that only 7% of UK employees received AI training in the past year, despite a high demand, with 48% believing AI will enhance their career and promotion prospects. The survey showed an urgent need for firms to catch up and integrate the benefits of AI into their wider strategies.

A survey by the Department for Work and Pensions, polling 8,002 employers in Great Britain, reveals that a worrying 20% of employers see no benefits to a diverse workforce, though 66% identify no barriers to employing diverse staff.

My bit

I hope you enjoyed reading this month’s newsletter.? As a huge advocate of wellbeing I was particularly interested that organisations are now being encouraged to view wellbeing as a "shared responsibility" between employer and employee, rather than solely an individual’s concern. Something that I’ve definitely been championing for a while so if you are looking for some initiatives to introduce just let me know – a lot of these don’t cost anything.

I took some time out last week for my own wellbeing and took my Mum back to Anglesey where she was born.? We had a wonderful week creating some new memories and reminiscing over old ones.

Sue

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