Tag: work

“Daughter of furlough”?

TUC calls for permanent short-time working scheme to protect jobs in times of economic crisis and change

  • TUC says government must build on the success of furlough – and set up a permanent scheme to deal with big disruptions to jobs in the future, like the transition to net zero, future pandemics and technological change 
  • Periods of industrial change have too often been mismanaged and led to increased inequality – a short-time working scheme would help prevent this, says TUC 
  • Union body warns of job losses amid abrupt end to furlough scheme 

The TUC is calling on the government to establish a permanent short-time working scheme as “a post pandemic legacy” to help protect working people through periods of future economic change. 

The TUC says the furlough scheme, while far from perfect, is one of the major successes of government policy during the pandemic, protecting millions of jobs and livelihoods. 

On the back of the success of the furlough scheme, the union body is urging government to build on furlough – “not throw away its good work” – with a permanent short-time working scheme to make the labour market more resilient in times of change and crisis.  

The union body adds that because of the UK transition to net zero and the increased uptake of new technology, this is “hugely relevant”.   

Case for a short-time working scheme 

In a new report, Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC says the case for a short-time working scheme is clear, citing significant benefits for workers, firms and government. The union body says for workers, a short-time working scheme would: 

  • reduce the risk of workers losing their jobs in times of crisis  
  • protect workers’ incomes – particularly as short-time working schemes are usually more generous than unemployment benefits.  
  • prevent widening inequalities – protecting women, disabled workers and BME workers who tend to lose their jobs first in a recession due to structural discrimination   

And for the government, it would: 

  • protect against long-term unemployment, and the subsequent devastating impacts on communities 
  • help stabilise the economy, and encourage a faster economic recovery as workers continue to spend their wages 
  • save money, as the cost of furlough schemes is often below the cost of unemployment benefits, particularly where costs are shared with employers. 

For employers, the TUC says that such a scheme would produce significant savings on redundancy, training and hiring costs, as they enable firms to keep skilled workers on their books. 

The union body points out that the UK is an anomaly among developed nations in having no permanent short-time working scheme to deal with periods of industrial disruption and weak demand.  

In the OECD, 23 countries had short-time working schemes in place before the coronavirus pandemic, including in Germany, Japan and many US states. 

Turbulent times ahead 

The TUC predicts that the UK economy is likely to face significant risks in the future – be it from climate change and the transition to net zero, new technologies such as AI, new variants or another pandemic. All could cause unpredictable and widespread disruption in the labour market – causing big spikes in unemployment and business failure.  

The TUC cites failed attempts to manage industrial change in the past, which “left communities abandoned” and played a major role in the widespread regional inequality we see today.  

The union body says that if the government is serious about levelling up, it will put in place a permanent short-time working scheme to prevent inequalities spiralling – adding that a short-time working scheme could play a vital role in achieving a ‘just transition’ to net zero.   

Criteria for accessing scheme 

The TUC says the scheme should be governed by a tripartite panel bringing together unions, business and government, which should be tasked with designing the criteria for the new scheme. 

In designing the scheme, the TUC says the panel should take into account best practice from existing global schemes. The union body has set out the following conditions which it says must be in place for accessing a short-time working scheme: 

  • Workers should continue to receive at least 80 per cent of their wages for any time on the scheme, with a guarantee that no-one will fall below the minimum wage for their normal working hours 
  • Any worker working less than 90 per cent of their normal working hours must be offered funded training. 
  • Firms must set out a plan for fair pay and decent jobs 
  • Firms should put in place an agreement with their workers, either through a recognised union or through consultation mechanisms. 
  • Firms must demonstrate a reduction in demand – which can include restructuring     
  • Firms should commit to paying their corporation tax in the UK, and not pay out dividends while using the scheme. 
  • The scheme should ensure full flexibility in working hours. 
  • There should be time limits on the use of the scheme, with extension possible in limited circumstances. 

TUC General Secretary Frances O’Grady said: “Everyone deserves dignity and security at work. The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning. 

“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.  

“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned.  

“Setting up a ‘daughter of furlough’ to provide certainty to workers and firms through future industrial change would be a fitting pandemic legacy. 

“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.” 

Furlough warning 

The call for a permanent short-time working scheme comes exactly six weeks before the furlough scheme is set to end – the date at which employers are legally obliged to start consulting on planned redundancies with their staff.  

The TUC is warning the abrupt end to the furlough scheme will cause unnecessary job losses and may harm the country’s economic recovery. 

Recently, aviation unions have also been raising concerns about the sudden end to the furlough scheme and the loss of jobs in the sector. 

On the ending of the furlough scheme, Frances said: “The jobs market is still fragile, with more than a million people still on furlough. 

“An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.  

“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.” 

Captain Martin Chalk, Acting General Secretary of BALPA said:  “The UK aviation sector is the only industry to remain effectively in a lockdown.  

“It employs about one million workers directly and ONS statistics show that 57% of remaining employees in air transport companies remain on furlough.  

“The scale of jobs at risk of redundancy when the furlough scheme ends is self-evident, yet the footprint of aviation must not be missed – one in four constituencies has over 1,000 people employed directly by aviation companies.  

“If the Chancellor chooses not to extend furlough, the effects will be felt by workers, communities and businesses right across the country.” 

Diana Holland, Unite Assistant General Secretary, said: “Aviation is crucial to the UK’s economic recovery. It needs furlough support to continue while Covid restrictions apply.

“Airports and aviation support thousands of jobs. Without support all are at high risk.” 

– The full report Beyond furlough: why the UK needs a permanent short-time work scheme is here: 

https://www.tuc.org.uk/sites/default/files/2021-08/PermanentFurloughReport.pdf

‘No place in modern Britain’: TUC calls for umbrella companies ban

  • Union body warns use of umbrella companies could spiral post-pandemic
  • New TUC research estimates that half of agency workers work for umbrella companies

The TUC has called for umbrella companies to be banned, as it publishes a new report on their increasingly widespread use in the UK labour market. The union body says the scandalous workplace practices associated with umbrella companies have “no place in modern Britain”.

An umbrella company is essentially a payroll company, used by recruitment agencies to operate a PAYE (pay-as-you-earn) system for the agency workers that they find work for. In many cases, the umbrella company will also employ the agency worker, with the agency workers becoming “employees” of the umbrella company.

A fragmented employment relationship

The TUC says that umbrella companies create multiple issues which mean it is difficult for workers to exercise their basic rights.

The union body says in particular, workers face misleading and unfair deductions from pay, adding that breaches of holiday leave and pay entitlement are widespread – with umbrella companies preventing workers from taking their holiday entitlements.

To make matters worse, the TUC says “the use of umbrella companies fragments the employment relationship”, leaving workers unsure of who to speak to resolve problems and often “passed from pillar to post” when trying to sort out their issues.

It has been widely reported that some umbrella companies promote and coerce their employees to use tax evasion schemes, leaving workers potentially facing huge future tax bills.

Increased use of umbrella companies

The union body is warning that the use of umbrella companies could spiral post-pandemic because of a combination of changes to tax rules (IR35) which have come in this financial year and the increase in agency work.

The IR35 or “off-payroll working rules” will potentially make employers liable for the tax and national insurance contributions of the contractors that they engage with.  Government guidance states that the off-payroll working rules are unlikely to apply if you are employed by an umbrella company.  

The TUC predicts that transferring contractors to umbrella companies will be seen by some companies as a convenient way to continue to shirk their tax and employment rights obligation.

New TUC research estimates that half of agency workers work for umbrella companies. Recruitment agencies have been used through the pandemic for key worker roles that needed to be mobilised quickly, like vaccinators and testing staff.

The TUC is concerned that post-pandemic the number of agency workers will increase – and therefore umbrella workers too – as companies scramble for new staff amid reopening and labour shortages in some sectors.

The TUC warns that there is no proper regulation of the sector, because the government has failed to task any of the enforcement bodies with regulating the umbrella sector, despite  a recommendation from the Taylor Review into Modern Working Practices, that enforcement of umbrella companies should be stepped up.

The union body says this is a “gaping hole in enforcement” and lets down some of the lowest paid and most insecure workers.

In order to clamp down on the umbrella companies, the TUC is calling for:

  • An outright ban on umbrella companies by requiring employment agencies to pay and employ the staff they place with clients
  • Joint liability laws in supply chains, that make the end client and any contractor in the supply chain responsible for upholding the legal rights of those working in the supply chain
  • Greater trade union access to workplaces and new trade union rights

TUC General Secretary Frances O’Grady said: “Everyone deserves decent work. But too many low-paid workers are denied the wages they were promised and basic legal rights like holiday pay because they work for umbrella companies.  

“Lots of them are the key workers we all applauded – like social care workers, teachers and coronavirus testing staff.

“These scandalous workplace practices have no place in modern Britain. But our inadequate regulations let dodgy umbrella companies off the hook – allowing them to act with impunity.

“Employers shouldn’t be able to wash their hands of any responsibility by farming out their duties to a long line of intermediaries.

“Enough is enough. It’s time for ministers to ban umbrella companies, without delay.”

UmbrellaCompaniesDownload

Acas urges workers to speak to their bosses about taking holidays

4 in 10 report taking less time off during pandemic

New research by Acas has found that around 4 in 10 British employees (39%) have taken less paid time off work during the pandemic compared to before it started.

Acas commissioned YouGov to ask British employees workers about how much annual leave or paid time off they had taken since the start of the pandemic when compared to previous years. The poll also found that the results varied depending on the size of the organisation:

Acas advice is that it is important for people to take time off to get rest, to keep both physically and mentally healthy and to use their holiday entitlement within their current leave year where they can.

Susan Clews, Acas Chief Executive, said: “Our poll findings are unsurprising as many workers may have taken advantage of a new law introduced last year, which allows them to carry over most of their paid time off into this year.

“Whilst the easing of pandemic restrictions is good news for many businesses, many staff will be keen to use up the leave they have saved up to take advantage of the summer season.

“Acas advice is for employees to agree any holiday plans with their managers and keep them updated on any new COVID developments that could impact work such as travel quarantine or being asked to self-isolate.”

Acas has advice for employers and employees on taking leave, what the rules are and what has changed as well as information on what to do if you need to self-isolate when returning from abroad.

In 2020, the Government introduced a law allowing employees and workers to carry over up to four weeks statutory paid holiday into their next two holiday leave years. This law applies for any holiday that staff do not take due to COVID-19.

Acas advice on taking paid time off includes:

  • Workers should try and make requests for paid holiday throughout their holiday year;
  • If holiday plans suddenly change due to COVID-19 then employees should get in touch with their boss to agree alternative options for time off; and
  • Get any time off requests in as soon as possible as employers need to plan staff cover for their businesses and are unlikely to agree staff all taking holiday at the same time.

It’s important to check the latest Government guidance before and after travelling:

  • People who need to self-isolate should not leave their home to go to work but can work from home if it’s agreed with their employer;
  • If an employee cannot do their job from home, they should talk to their employer to agree what type of leave to use;
  • Employees and workers are not entitled to Statutory Sick Pay (SSP) if they’re self-isolating after travel abroad and cannot work from home. But an employer can choose to pay them sick pay at the same rate as SSP or a higher rate if they want to.

For the full Acas advice on paid time off please visit, https://www.acas.org.uk/holiday-sickness-leave and for self isolation please visit, https://www.acas.org.uk/coronavirus/self-isolation-and-sick-pay

£70 million investment in youth employment

Young people looking to enter the workforce are to benefit from £70 million of investment from the Scottish Government.

The Young Person’s Guarantee aims to protect people from the economic impact of COVID-19 by offering every 16-24 year old in Scotland the opportunity of a job, apprenticeship, further or higher education, training programme or volunteering.

The announcement meets four of the commitments for the first 100 days of this government, and comes as a new report highlights the progress of the Young Person’s Guarantee.

Since it was officially launched in November 2020 funding has been committed to create up to 18,000 training, job and apprenticeship opportunities for young people.

The £70 million of investment includes:

  • £45 million for local partnerships to provide training, employer recruitment incentives, and mental health interventions for young people
  • £13.5 million for Colleges, Universities and the Scottish Funding Council to provide industry-focussed courses supporting up to 5,000 young people and employment support for 500 recent graduates
  • £10 million for the roll-out of new school coordinators and enhanced school provision to support young people access education, work and training
  • £1.5 million to increase places on volunteering and third sector programmes

During a visit to Young Movers, a youth charity based in Glasgow, First Minister Nicola Sturgeon said: “We know that young people have been badly affected by the pandemic and we are determined to do everything we can to support them.

“The Young Person’s Guarantee is a vital part of that support which aims to give all young people the chance to succeed despite the economic impacts of COVID-19.

“This investment of £70 million, which meets four of our 100 days commitments, will also ensure employers continue to benefit from the fresh talent and new perspectives that young people bring to workplaces across Scotland.”

Sandy Begbie, Chair of the Young Person’s Guarantee Implementation Group, said: “Inclusion was at the core of the Young Person’s Guarantee so I am particularly pleased by the increased opportunities created for young people who are furthest from the workplace. 

“None of this could have been achieved without employers being engaged and I am delighted we have almost 100 employers and business groups signed up supporting the scheme.

“Our young people, who have been disproportionately impacted as a result of the pandemic, are an asset to Scotland and it has never been more important that we deliver against the Young Person’s Guarantee.”

TUC survey: 7 in 10 disabled women say they’ve been sexually harassed at work

  • TUC publishes first UK major report into sexual harassment of disabled women at work 
  • Most disabled women surveyed told the TUC they have been sexually harassed at work – and 1 in 8 of those say they left their jobs because of this 
  • TUC calls for a new duty on employers to protect all their staff from sexual harassment at work 

Around 7 in 10 (68%) disabled women surveyed about sexual harassment say they have been sexually harassed at work, according to a new poll published by the TUC. 

And younger disabled women aged 18 to 34 are even more likely to have experienced sexual harassment, with almost 8 out of 10 (78%) reporting being harassed at work. 

Sexual harassment 

A ground-breaking TUC study on sexual harassment published in 2016 found that more than half (52%) of women had experienced sexual harassment in the workplace. And in a further TUC survey in 2019, nearly 7 in 10 (68%) lesbian, gay, bisexual and trans people reported being sexually harassed at work 

Sexual harassment at work can take many forms, from suggestive remarks, jokes about a colleague’s sex life, circulating pornography, to inappropriate touching, hugging or kissing, demands for sexual favours, and even assault and rape. 

This new TUC survey – which is the first major study into the sexual harassment of disabled women at work in Great Britain, and was carried out by YouGov – found that of those surveyed: 

  • Around 2 in 5 (38%) have experienced unwelcome sexual advances at work. 
  • More than 1 in 3 (36%) say they have experienced unwanted touching. 
  • Almost 1 in 5 (18%) experienced sexual assault, such as unwanted sexual touching. 
  • And 1 in 25 (4%) have experienced a serious sexual assault or rape at work. 

Reporting 

Two-thirds (67%) of disabled women who experienced sexual harassment at work told the TUC that they did not report the harassment to their boss the most recent time it happened. Of these, the most common reason was that they did not believe they would be taken seriously (39%). 

Some said they were worried it would have a negative impact on their career or work relationships (30%). Other reasons included not thinking they would be believed (13%) or thinking they would be blamed if they reported the incident (11%). 

And unfortunately, of those who did report the most recent instance of sexual harassment, more than half (53%) said it was not dealt with satisfactorily. 

Impact 

Disabled women told the TUC that sexual harassment had a big effect on their lives. 

Around 1 in 3 (34%) said their experiences had a negative impact on their mental health. More than 1 in 5 (21%) said it negatively affected their relationships with colleagues. And it caused 1 in 8 (12%) to leave their job or employer entirely.  

Disabled women face significant barriers getting into work and to getting paid the same as non-disabled workers, says the TUC. 

TUC research in October 2020 found that disabled women earned 36% less than non-disabled men. And the analysis found that the unemployment gap for disabled women, when compared to non-disabled men was 32.6 percentage points. 

TUC General Secretary Frances O’Grady said: “No one should face sexual harassment at work. But seven in ten disabled women say they have been sexually harassed by a colleague or a customer while at work.  

“Four years on from the explosion of #MeToo on a global scale, employers still aren’t doing enough to make sure women are safe at work. It’s time for every employer to take responsibility for protecting their staff from sexual harassment.  

“Ministers must change the law to make employers protect workers from sexual harassment specifically, and from all forms of harassment by customers and clients.  

“Anyone worried about sexual harassment at work should get in touch with their union.” 

Ministers must act 

The TUC is calling on the government to take a range of actions including: 

  • Introduce a new duty to prevent sexual harassment, putting an enforceable legal requirement on all employers to protect their workers from harassment. 
  • Strengthen legislation to tackle third-party harassment in the upcoming employment bill. 
  • Increase funding for the Equality and Human Rights Commission so it can enforce the new duty to prevent sexual harassment. 
  • Introduce a statutory code of practice on sexual harassment and harassment at work, setting out the steps that employers should take to prevent and respond to sexual harassment, and what can be considered in evidence when determining whether the duty has been breached. 

TUC calls on employers to keep their staff safe as temperatures set to soar

  • Met Office issues extreme heat weather warning for the first time 
  • Forecasters warn temperatures will continue to climb and could reach 33 degrees C (91.4F) in some parts of the country 
  • TUC calls on employers to make sure staff are protected from the sun and heat 

The TUC has urged employers to make sure their staff are protected from the sun and heat, as the Met Office issues one of its new-style extreme amber heat weather warnings for the first time. 

The amber warning covers parts of Wales, all of south-west England and parts of southern and central England and will be in place until Thursday (22 July), when temperatures are expected to peak. 

Health warning 

Working in hot weather can lead to dehydration, tiredness, muscle cramps, rashes, fainting, and – in the most extreme cases – loss of consciousness. 

The TUC says employers can help their workers by:  

  • Allowing flexible working: Giving staff the chance to come in earlier or stay later will let them avoid the stifling and unpleasant conditions of the rush hour commute. Bosses should also consider enabling staff to work from home while it is hot.  
  • Keeping workplace buildings cool: Workplaces can be kept cooler and more bearable by taking simple steps such as opening windows, using fans, moving staff away from windows or sources of heat, or installing ventilation or air-cooling.  
  • Temporarily relaxing their workplace dress codes: Encouraging staff to work in more casual clothing than normal – leaving the jackets and ties at home – will help them keep cool.   
  • Keeping staff comfortable: Allowing staff to take frequent breaks and providing a supply of cold drinks will all help keep workers cool.  
  • Talking and listening to staff and their union: Staff will have their own ideas about how best to cope with the excessive heat. 
  • Sensible hours and shaded areas for outdoor workers: Outside tasks should be scheduled for early morning and late afternoon, not between 11am-3pm when temperatures are highest. Bosses should provide canopies/shades where possible. 
  • Sun protection: Prolonged sun exposure can be dangerous for outdoor workers, so employers should make sun protection available. 

The law 

There’s no law for minimum or maximum working temperatures. However, during working hours the temperature in all indoor workplaces must be ‘reasonable’. 

Guidance suggests a minimum of 16degC, or 13degC if employees are doing physical work. And employers have a duty to keep the temperature at a comfortable level and provide clean and fresh air. 

The TUC would like to see a change in the law so that employers must attempt to reduce temperatures if they get above 24degC and workers feel uncomfortable. And employers should also be obliged to provide sun protection and water for outdoor workers. 

The TUC would also like ministers to introduce a new maximum indoor temperature, set at 30degC – or 27degC for those doing strenuous jobs. 

TUC General Secretary Frances O’Grady said: “We all love the summer sun. But working in sweltering conditions in a baking shop or stifling office can be unbearable and dangerous. 

“Indoor workplaces should be kept cool, with relaxed dress codes and flexible working to make use of the coolest hours of the day. 

“And bosses must make sure outdoor workers are protected with regular breaks, lots of fluids, plenty of sunscreen and the right protective clothing.” 

The TUC is also asking employers to consider additional needs that may arise in hot weather from coronavirus health and safety requirements. Frances O’Grady added: 

“It’s even more important to use PPE safely in this hot weather. Staff will need extra breaks to cool down if their equipment reduces ventilation. 

“And while many offices have air conditioning, few people have it in their homes. Lots of staff are still working from home, so they may struggle to work during the hottest parts of the day. Employers should allow flexible hours so people can work when it’s cooler.” 

More than half of UK students considering dropping out as mental health plummets

University degrees lose value with employers

  • 55% of students are considering dropping out of their courses, while 63% say their mental health and wellbeing worsened since the start of the academic year
  • Three in 10 businesses say a job candidate’s degree doesn’t matter at all, while 56% say that it is generally not important
  • However UCAS data reveals university applications have risen

More than half of UK students were considering dropping out this academic year, while two thirds have suffered a decline in mental health, a new study has found, alongside the fact that 56% of companies do not consider a degree important when recruiting.

The research by money transfer service RationalFX found that student mental health is declining, with a recent ONS survey revealing that 63% of students said their mental wellbeing had worsened since the start of the academic year in September 2020. Furthermore, 55% of students say they are considering dropping out of their courses.

In addition, new graduates will encounter a job market where 30% of business owners say a degree is not important at all when recruiting, while a further 26% rate the qualification as not very important, according to a poll by YouGov.

Despite this, the numbers for university applications this year have risen. New data from UCAS reveals that there have been 10% more applications for this Autumn, rising from 281,000 last year to a record 311,000, with 44% of school leavers applying for university places.

Commenting on the study, a spokesperson for RationalFX said: “Choosing whether to study for a degree has always been a big decision, but the impact of the pandemic has probably made it even more significant.

“For the majority of employers, a degree is far from essential, and for many students the last academic year has been very difficult. And with the cost of attending university higher than ever before, it is certainly not a decision to be taken lightly.”

Only 14% of businesses say a degree is very important while one in four consider it somewhat important. Larger businesses are more likely to consider a degree valuable when hiring a new employee, with 56% saying that it is important, compared to one in five small businesses.

The employment sector that places the greatest importance on degrees during the hiring process is Legal, with IT & Telecoms coming in second.

Finance and Accounting comes in third, followed by Media & Marketing, Manufacturing and Construction.

Marketing is split with 47% of businesses believing a degree is important, and 50% saying it is not. The sector that places the least importance on having a degree is hospitality and leisure.

Younger business owners are much more likely to value a degree, with 23% of those aged under 35 rating one as very important, compared to just 8% of UK business owners aged 55 and over.

Businesses in London are more likely to value a degree when they are looking for new hires, with 62% considering it at least somewhat important, while nearly of half of businesses in Wales (46%) say the qualification is not important at all.

The analysis was conducted by RationalFX, which is one of Europe’s leading international payment providers. Its competitive exchange rates, market expertise, suite of FX products and online payment platform enable bank transfers in more than 50 currencies worldwide.

Employment Sector and their opinion on the importance of a degree for a new hire
SectorVery importantSomewhat importantNot important at all
Legal402611
IT & Telecoms193917
Finance and Accounting213318
Media/Marketing/advertising/ PR & Sales182923
Manufacturing132531
Construction112540
Retail141635
Hospitality and Leisure61348
UK businesses and their opinion on the importance of a degree, split by region
RegionVery importantSomewhat importantNot important at all
London273517
Southeast72529
Southwest72437
Wales111346
Scotland141936
North62239
Midlands152128
https://www.rationalfx.com

Local MSP urges young people to apply for Job Start Payment

Gordon MacDonald, MSP for Edinburgh Pentlands, is urging young people in the area to apply for the Job Start Payment if they are starting a new job after a period of unemployment.

The Job Start Payment is available to 16-24-year-olds who have been on certain benefits for six months or more. Eligible young people can apply for the one-off payment worth £252.50, or £404 if they have children.

The payment will help with the costs of starting a job including travel, new clothes or childcare. People can apply via www.mygov.scot/job-start-payment or by calling 0800 182 2222.

SNP MSP for Edinburgh Pentlands, Gordon MacDonald said: “The pandemic has been particularly difficult for young people in Edinburgh and the Job Start Payment is a fantastic source of support for young people to ensure they can get off to a good start in a new job.

“Starting a new job can be very expensive for young people when you take into consideration the costs of travel, buying clothes and other costs associated with a new job.

“I would encourage all young people who have been unemployed for a long period of time and are starting a new jo or have recently started one to apply for this support.”

Joint call for mandatory ethnicity pay gap reporting

The TUC, CBI and Equality and Human Rights Commission (EHRC) yesterday issued a joint call for the government to introduce mandatory ethnicity pay gap reporting. 

In a joint letter to the Chancellor of the Duchy of Lancaster, Michael Gove, the heads of the three organisations say: “Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.” 

The letter – signed by TUC General Secretary Frances O’Grady, CBI Director General Tony Danker and EHRC chairwoman Baroness Kishwer Falkner – urges ministers to set out a clear timeframe for introducing ethnicity pay gap reporting to help “ethnic minorities reach their full potential in the workplace.” 

TUC General Secretary  Frances O’Grady  said:  “Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on. But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression. 

“This problem isn’t going to magic itself away. Without robust and urgent action many BME workers will continue to be held back. 

“Unions stand ready to work with employers, regulators and government on practical steps to tackle inequality and discrimination in the workplace. 

“Mandatory ethnicity pay gap reporting is an obvious first step in helping to improve transparency and bring about change. 

“We need ministers to commit to introducing ethnicity pay reporting now and to bring forward a clear timetable for getting it into law.” 

The full letter reads: 

Dear Chancellor of the Duchy of Lancaster 

The case for mandatory ethnicity pay reporting 

We are writing to set out our shared priorities to the inter-ministerial group established to consider the recommendations of the Commission on Race and Ethnic Disparities. Respectively, we represent millions of workers, thousands of businesses, and enforce the Equality Act 2010 in Britain to ensure that people have equal access to and are treated fairly at work. 

We agree with the Commission’s statement that the report comes at a pivotal moment for the country, at a time when the inequalities facing ethnic minority people are under scrutiny. Outcomes at work are no exception. However we believe the report’s recommendations, in particular those related to pay disparities, could go further in order to effectively increase the participation and progression of ethnic minorities in the workplace and create a fairer Britain. 

Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it. This has been a longstanding goal for all of us. It will enable employers to identify, consider and address the particular barriers facing ethnic minorities in their workplace, and will complement and enhance the work many already do to address gender pay gaps under existing regulations. 

Together we’re asking the Government to make it mandatory for employers to report on their ethnicity pay gaps, building on the successful framework already in place for gender. Reporting, done well, can provide a real foundation to better understand and address the factors contributing to pay disparities. To further enable this, we also support the Commission’s recommendation that pay gap data should be supported by a narrative – comprised of key data, relevant findings and actions plans to address race inequalities. 

Some employers are already voluntarily reporting on their ethnicity data and taking action to address race inequality in their workplaces. While this is welcome and should continue to be supported in the interim, introducing mandatory ethnicity pay reporting will put greater focus on race at work, contribute to a greater number of employers reporting their ethnicity pay gap figures, and achieve the change across the labour market that is required. 

We urge Government to set out a clear timeframe to implement this and encourage you to work with us to develop the tools and resources required to ensure that employers are supported, and that workers are confident in disclosing data in advance of making reporting mandatory. 

In so doing, we firmly believe that this will help ethnic minorities reach their full potential in the workplace, make business more inclusive, and ensure Government has a rich source of robust evidence to inform future labour market and industrial strategies. 

Frances O’Grady, General Secretary, TUC 

Tony Danker, Director General, CBI 

Baroness Kishwer Falkner, Chairwoman, EHRC 

Acas insight into Fire and Rehire

The Department for Business, Energy and Industrial Strategy (BEIS) asked Acas to conduct an evidence gathering exercise to learn more about the use of fire and rehire practices.

This was published yesterday and contains views from a range of participants about their experiences on the use of fire and rehire.

Acas Chief Executive, Susan Clews, said: “Our findings provide valuable insight into the use of fire and rehire practices. We gathered a range of views from professional bodies with workplace expertise, including trade unions and employer organisations.

“Some of the participants told us about the business challenges of COVID-19 and how the use of fire and rehire can help reduce redundancies. Others believe that the practice is unacceptable, and that the pandemic has been used as a ‘smokescreen’ to diminish workers’ terms and conditions.

“There was also evidence that fire and rehire practices have been used for many years and predate the pandemic. We will take up the government’s request to produce further guidance that encourages good workplace practices when negotiating changes to staff contracts.”

Read the findings in ‘Dismissal and re-engagement (fire-and-rehire): a fact-finding exercise‘.