Monthly Archives: June 2016

Staff Accuse B&Q of Using the National Living Wage as an ‘Excuse’ to Cut Pay and Benefits

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Employers are being warned to avoid kneejerk moves when introducing measures to offset increased wage costs.

A petition drafted by a B&Q manager, accusing the DIY retailer of slashing employee benefits in an effort to offset the costs of the national living wage (NLW), has so far attracted more than 120,000 signatures. As an employer you could face a similar negative reaction if you attempt to alter terms and conditions as a result of the law to increase salaries for your lowest paid staff. The £7.20 an hour wage came into force on Friday 1 April.

As part of the change, the B&Q employees say that the retailer has suggested time-and-a-half pay for working Sundays and double time for working bank holidays; a restructuring of allowances for employees working in parts of the UK where the cost of living is higher; and the removal of a summer and winter bonus, which equates to 6% of annual salary.

The petition says that B&Q staff are required to accept the new terms and conditions of employment, or face losing their job.

“Big businesses like B&Q are using the NLW as an excuse to cut overall pay and rewards for the people who need it the most,” the petition reads.

B&Q denies that the changes to terms and conditions are as a result of the NLW, stating that a review of its pay and reward framework was launched “long before” the new wage was announced.

A B&Q spokesman said: “Our aim is to reward all of our people fairly so that employees who are doing the same job receive the same pay. That isn’t the case at the moment, as some have been benefitting from allowances for a long time when others have not, and that can’t continue.”

A survey from the Federation of Small Business found that 54% of SMEs believe they have been negatively impacted by the 50p an hour increase in pay, and will put off hiring new staff as a result. 41% will cut staff hours, while 26% plan to erode pay differentials by freezing or cutting the wages of higher paid staff.

According to analysis by the FT, employers are actively are actively considering increasing the number of self-employed individuals or apprentices – all of whom are exempt from the NLW – in their staffing mix.

But Esther Smith, employment partner at UK law firm TLT, warned that this could leave employers open to discrimination claims.

“Employers may, consciously or unconsciously, look to employ younger people to avoid the higher wage costs.  Also, if they operate zero hours’ contracts, they may elect to offer less work to those people over 25,” she said. “Both of these actions would expose the employer to age discrimination claims.”

Before you make any major decisions which could affect your business and your employees, get in touch by contacting us on 0118 940 3032 or emailing sueferguson@optionshr.co.uk.

Is Your Business Ready for Ramadan?

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For many Muslims, Ramadan is a period of religious observance, which includes fasting from sunrise to sunset. To help make sure your business is ready, here is a checklist for employers that will help you support any of your employees who observe religious festivals.

  1. Have a policy on religious observance

Your managers should familiarise themselves with your employer’s policy on religious observance during working hours. Making allowances for observance to employees of one religion, but refusing to provide equivalent benefits to employees of a different one, will amount to direct religious discrimination.

Having a policy on religious observance during working hours should have a positive impact on your employees. An absence of such a policy, together with a failure to be supportive towards employees whose religious beliefs require them to observe certain practices, could lead to accusations of religious discrimination.

  1. Show tolerance on reduced productivity levels

It is likely that the productivity of an employee who is fasting will be affected, particularly towards the latter part of the working day. You and your managers should be aware of this and not unduly penalise or criticise an employee whose productivity has suffered because he or she is fasting during a period of religious observance.

  1. Find a way to accommodate annual leave requests

You may experience high demand for holiday requests for a certain period from employees observing religious festivals. The end of Ramadan is marked by the Islamic holiday of Eid, which also signals an end to the fasting period. As an employer, you may, as a result, receive a large number of requests to take holiday towards the end of Ramadan.

It may be impractical for you to grant all of the requests. However, you should be supportive towards employees who observe religions other than Christianity, particularly because the majority of Christian holidays are provided for in the UK as bank holidays.

  1. Consider the effects of training events, conferences and offsite meetings

You may find that some of your employees who are in a period of religious observance are reluctant to attend training events, conferences or offsite meetings.

During Ramadan, Muslims are obliged to abstain from all food and drink between dawn and sunset. This means that you should consider carefully an employee’s request to be excused from attending work conferences, offsite locations, training and similar events during Ramadan because a failure to do so might amount to direct and indirect religious discrimination.

Your managers should arrange to meet with the employee concerned to explore fully his or her reservations about attending an event and determine whether or not a compromise can be reached. For example, the presence of food and drink at the event might be one of the concerns for the employee.

The Islamic holy month of Ramadan begins on Monday 6 June 2016 and it ends 30 days later on Tuesday 5 July 2016.

If you need help developing a policy for religious observance or holidays for your business, please contact us and we can provide one for you. Call 0118 940 3032 or email sueferguson@optionshr.co.uk.

This information was provided by Xperthr.