The EZHR Weekly Update 10th July 2023

The EZHR Weekly Update 10th July 2023

On this week’s EZHR update we talk all things National Living Wage and changes to Paternity leave.

National Living Wage

In a recent move by the Department for Business and Trade (DBT), over 200 companies have been publicly named and shamed for failing to uphold the National Living Wage, a legal requirement aimed at ensuring fair compensation for the lowest paid workers. This list of offenders includes a wide range of businesses, from well-known brands like WH Smith to small-scale sole traders.

The repercussions for these companies go beyond mere exposure, as they have been required to reimburse their workers for the outstanding wages owed. Additionally, they now face financial penalties for their failure to comply with the minimum wage regulations.

A significant portion of these companies, around 39%, had unlawfully deducted pay from their employees' wages. Furthermore, an equal number, 39%, failed to adequately compensate their workers for the time they put in, while 21% paid incorrect rates to their apprentices.

The Department for Business and Trade (DBT) has issued an Educational Briefing aimed at preventing future violations. This briefing outlines several key areas where employers commonly overlook the rights of their workers, these include watch outs on not paying for :

·       Compulsory attendance at team meetings,

·       Waiting for a job to start or downtime 

·       Time spent travelling from client to client

·       'Sleep-in shifts', where they may be required to work during their sleep period

·       Time spent putting on/PPE

·       Time spent attending to opening and closing duties

·       When employers ‘round up’ late log in times

Moreover, this emphasises the importance of compensating employees for activities which effectively results in unpaid working hours for employers.

It is important to remember that The National Living Wage is not merely a suggestion; it is a legal obligation. The naming and shaming of companies failing to meet these standards serves as a reminder that non-compliance will be addressed through monetary and reputational processes, and that fair pay is a fundamental principle that should be upheld by all businesses, regardless of their size or stature.

Paternity

The Government have responded on the consultation on parental leave and pay, launched back in 2019 as part of the Good Work Plan

The consultation sought to delve into the objectives of parental leave and pay, assess the support provided by government policies to parents and employers, examine the factors that facilitate the combination of work and childcare for parents, and consider potential options for reforming parental leave and pay.

According to the Government's response, the current legislation will undergo amendments to factor in the following changes:

·       Fathers or partners will have the option to split their leave into two blocks of one week each. Previously, they were only allowed one block of one or two weeks.

·       Fathers or partners will be able to take their leave and pay at any time within the first year after the birth or adoption of their child, rather than being limited to the first eight weeks.

·       Adjustments will be made to the process through which fathers or partners notify their employer of their intention to take leave and pay.

Under the new measures, employees will be required to provide notice of their leave plans 15 weeks prior to the expected week of childbirth (EWC), followed by four weeks' notice of specific leave dates before each period of leave.

The Government explains that these reforms offer increased flexibility for fathers or partners and employers alike. The two weeks of leave can be taken at any point within the first year after birth or adoption.

Moreover, these proposals will bring about significant changes to how employers handle paternity leave. Due to the heightened complexity of the notice requirements, employers will need to adapt their systems to effectively track employee requests. Managers will also undergo training to familiarise themselves with the changes, and existing policies and other relevant documents will be amended accordingly.

If you have any questions on these please don't hesitate to contact us at info@ezhr.uk or 0161 843 5678