Workplace Pulse | November 2024
Government reforms: The cost of Labour’s new workers’ rights proposals?
Gerard O'Hare , Legal Director
Labour's proposed plan to strengthen workers’ rights is stirring debate among UK businesses. The Employment Rights Bill aims to bring about significant changes; key proposals include new rights for workers from the first day of their employment, such as sick pay, protection from unfair dismissal, and parental and bereavement leave. The Bill also contains restrictions on zero-hour contracts and stronger Trade Union rights.?
A recent government impact assessment suggested that implementing these changes could cost employers up to ￡5 billion each year. Small businesses, which employ 13 million people nationwide, fear they may bear the brunt of these costs. However, the government’s report argues that these additional expenses will have a modest impact on employers, amounting to less than 1.5% of their overall employment costs. Furthermore, the report states that the changes could lead to improvements in employee wellbeing, valued at approximately ￡3 billion, by fostering happier and more secure workplaces.?
Despite these potential benefits, many businesses are concerned about the financial burden, which could lead to workforce reductions and slow economic growth. Employment lawyers have also raised concerns about the initial bureaucratic challenges of adapting to these regulations, as the long-term benefits are harder to pinpoint.?
Small business advocates and Conservatives argue against these “French-style” laws, seeking exemptions for small and medium-sized companies to safeguard economic growth. Meanwhile, the Trades Union Congress has argued that these upgrades are essential, and that responsible employers should view them as investments in the workforce.?
Industries dependent on insecure labour, such as the hospitality and retail sectors, stand to be most affected, with about two million workers benefiting from better sick pay and guaranteed work hours. Employers should consider the potential economic and social gains, such as fewer lost workdays and improved workforce wellbeing, as they prepare to implement these considerable reforms.?
Read more on this topic here.
Global news: Boeing seeks billions amid prolonged strikes and looming job cuts??
William Lane , Principal Employment Law Adviser and Solicitor?
Boeing is pursuing up to $35 billion in funding from investors and banks as a strike by over 30,000 of its workers continues into a second month. The company, facing mounting financial pressure, aims to raise $25 billion from investors and has secured an agreement with banks for an additional $10 billion loan. Boeing has also announced plans to cut approximately 17,000 jobs, with redundancies beginning in mid-November, although striking workers will not be affected immediately.?
The strike began after Boeing retracted an offer of a 30% pay increase over four years, stalling negotiations with the workers’ union, the International Association of Machinists and Aerospace Workers (IAM).??
Boeing’s 777X plane deliveries will also be delayed by a year due to the disruption, and the firm expects substantial quarterly losses. Major credit agencies have warned of potential downgrades for the long-established aviation manufacturer, citing strike-related losses estimated at $1 billion monthly.??
Read more on this story here.
Workplace health: As UK sickness costs surge, can flexibility re-engage Gen Z??
Toyah Marshall , Head of Team and Solicitor?
The official Office for Budget Responsibility has reported that the cost of health-related benefits has increased from ￡36 billion pre-pandemic to ￡48 billion, indicating an increase in sickness absence in the UK when compared with similar countries like Australia, Austria, Canada, Germany, Ireland, the Netherlands, Sweden and the US, whose costs have actually slightly decreased post-pandemic.??
Not only has our bill increased, but the data also shows that the age of Claimants is getting younger and younger, with nearly double the number of claims a month from the under 40s compared to pre-pandemic levels and the majority of these claims being due to mental health.??
The worry that this data is causing isn’t just around the increased cost of rising claims (with the bill predicted to increase to ￡63 billion in the next four years) but also that a large portion of the population, namely Gen Z, risk becoming detached from the jobs market entirely if something isn’t done to re-engage them.??
One of the issues often cited as being a contributor to sickness absence is a lack of flexibility in the workplace and that traditional working hours don’t work anymore. Gen Z in particular wants a better work-life balance and more flexibility in their working day to focus on their mental health, so do employers now need to consider being more flexible with how they expect employees to perform their work? Potentially, yes. But will that solve the problem altogether? Likely not.??
Labour’s budget has made it clear that money is tight, and with more and more of it being absorbed by health-related benefits, it is keen to look to reduce this and get people back into work where possible. How this is to be achieved remains unclear, but various options are being explored such as trials of weight loss medication being issued to obese people, as well as increased mental health support. However, the question remains: where will the funding come from to support these measures, and will they truly make the UK well again???
Read more about this topic here.
Prosecution: Fatal fall highlights need for safer lifting operations?
Gail Dyer , Principal Health & Safety Consultant?
A company has been fined ￡285,000 after a 62-year-old worker, Igor Malka, died from a 10-meter fall during construction at the University of Birmingham. The incident occurred on January 7, 2020, when Malka and another contractor, Edmund Vispulskis, fell from a scissor lift that was pushed over by a crane moving hydraulic equipment. Vispulskis sustained serious injuries, including spinal damage and broken ribs.??
The Health and Safety Executive (HSE) investigated and found that Balfour Beatty, the principal contractor, failed to ensure proper communication and safety measures between contractors on site. There was no lift supervisor present during the incident. The company pleaded guilty to breaching Regulation 8(1) of the Lifting Operations and Lifting Equipment Regulations 1998 and was ordered to pay a total of ￡306,768.88, including costs.??
HSE inspector Gareth Langston emphasised the importance of properly planning and controlling lifting operations to prevent such tragedies. The University of Birmingham was not prosecuted in connection with the incident.?
Read more about this case here.
These specific regulations require that all lifting operations involving lifting equipment must be planned and carried out safely. This includes ensuring that the equipment is suitable for the intended use and that the operation is overseen by a competent person.??
WorkNest can support you by completing a detailed health and safety audit and offering professional advice on best practice to help you improve lifting operations. We can also help to ensure you’re meeting statutory compliance requirements by assisting with risk assessments and providing additional health and safety related training.
Got a question about any of the above topics, or need advice on a staffing or safety issue in your workplace? Call our experts on 0345 226 8393 or email [email protected]