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The Independent
11 hours ago
- Business
- The Independent
Businesses could be forced to tell you how much your colleagues are paid
Businesses could be forced to disclose salary bands on job adverts and tell workers what their colleagues are earning. Ministers are discussing the possible changes as part of plans to overhaul equality laws as the government seeks to end pay discrimination. This could include a new Equal Pay Regulatory Unit, which would have the power to issue fines and change employees ' contracts if needed, with legislation to expand on gender-based equal pay rules to include race and disability discrimination too, The Times reports. The body may also be able to offer advice and offer mediation if required. The move to potentially enforce the publication of salaries would be a notable shift, with business groups showing initial concern that it would make it difficult to attract and retain staff. A suggestion from the Conservatives that such a move would penalise middle-class and privately educated people was rejected by the government, saying 'positive discrimination is not permissible under the Equality Act'. 'Our research shows that businesses of all sizes are taking proactive steps to create equitable workplaces. That includes proactively identifying and removing all barriers to employment and progression opportunities,' said Jane Gratton, deputy director for public policy at the British Chambers of Commerce. 'While always ensuring fairness in pay, employers need to retain the flexibility to reward individuals for performance and experience. This agility is also crucial to help firms compete for skills and talent in a competitive labour market.' Jack Kennedy, senior economist at recruitment site Indeed, said job seekers would welcome the need for businesses to finally show what they intend to hire for all jobs, with expectations being set on both sides ahead of interview time, a key factor in building trust and saving time. 'The news of potential legislation around pay transparency, particularly on job postings, will be welcome news to workers across the UK,' Mr Kennedy said. 'Displaying salaries not only helps employees to feel more valued and empowered to address pay discrepancies, but also helps people identify where better opportunities may lie, supporting a healthier labour market that drives productivity and economic growth. 'Legislation will also help to set expectations for job seekers. Being aligned from the outset helps ensure candidate relevancy, making for a more efficient recruitment process, while it can also boost employer brand. So, by having stronger rules around transparency, both candidate and hiring teams can build trust from the first interview and help drive better matches.' Tina McKenzie, policy chair for the Federation of Small Businesses, said: 'Encouraging greater pay transparency is a good thing in principle but some of the measures being suggested simply don't fit the reality of small business life. It's also important to remember that many small firms don't formally advertise roles at all; they hire through word of mouth or their own networks. 'This is a clear case where it would be excessive for government to impose detailed regulatory rules on small employers who simply don't have HR departments.'
Sky News
03-03-2025
- Business
- Sky News
Sick pay boost for 1.3 million lowest-paid workers
Around 1.3 million people on low wages are to secure guaranteed sick pay for the first time in a bid to boost health and living standards, the government has announced. Those earning less than £123 a week on average will be entitled to a sick pay equivalent of 80% of their weekly salary or the new rate of statutory sick pay (SSP) - due to rise to £118.75 per week in April. Employers will have to pay whatever the lowest sum is under a compromise achieved following discussions with business leaders - already reeling from a looming hike to minimum wage and employer national insurance contributions announced in October's budget. The new sick pay policy is expected to take effect next year but, crucially, it will apply from the first day of sickness rather than after the third consecutive day. The government argues that the measure will keep more people off benefits and leave some up to £100 better off per week because they will remain in employment. Work and Pensions Secretary Liz Kendall said: "For too long, sick workers have had to decide between staying at home and losing a day's pay, or soldiering on at their own risk just to make ends meet. "No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change. "The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change." Unions had argued for an even higher figure. 3:02 The British Chambers of Commerce welcomed the outcome of the talks but said its members were still set to face further additional costs arising from the policy shift - on top of the budget measures due to take effect this April. Jane Gratton, its deputy director of public policy, said: "Employers often struggle to find shift cover at short notice, leading to disruption for customers. "The Government's impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences." The announcement was made at MPs debate the wider employment rights Bill amid reports the government could drop its commitment to a 'right to switch off' outside of working hours. The Sunday Times also reported at the weekend that a series of amendments was likely to be tabled by ministers amid government efforts to keep business sweet following a brutal backlash to the budget. Business groups have argued that the £25bn annual hit from the employment tax measures will result in job cuts, poor pay awards and weaker investment - hitting the government's growth agenda. Rachel Suff, wellbeing adviser at the HR body CIPD, said of the additional sick pay plans: "Phasing in elements of the Employment Rights Bill and ensuring sufficient support and guidance for employers will be vital to making sure these measures work for employers and employees."
Yahoo
03-03-2025
- Health
- Yahoo
Low-paid workers to get 80% sick pay guarantee, says Labour
More than one million people on low wages will get improved sick pay conditions under new plans designed to boost living standards. About 1.3 million people paid less than £123 per week in the UK will get guaranteed sick pay equivalent to 80% of their weekly salary as part of changes expected to come in next year. Officials said the policy will keep more people off benefits because they will not need to quit their jobs while they recover. They added that some people will be up to £100 better off per week, compared to the current system. Work and Pensions Secretary Liz Kendall said: 'For too long, sick workers have had to decide between staying at home and losing a day's pay, or soldiering on at their own risk just to make ends meet. 'No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change. 'The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.' The policy also means people will receive sick pay from their first day of illness, compared to the three consecutive days you must have been ill to qualify currently. Research from the Resolution Foundation has shown the UK has one of the lowest rates of statutory sick pay of developed nations. Currently, people who earn less than £123 per week do not get anything, while for better-paid full-time workers, statutory is just £116.75 per week, rising to £118.75 in April. Under the new plans, low earners will get 80% of their average weekly pay or the new rate of statutory sick pay, whichever is lowest. The policy was described as a 'fair compromise' by the British Chambers of Commerce, which represents businesses. However, the trade body said bringing forward sick pay to the first day of absence could hit companies. Jane Gratton, deputy director of public policy at the BCC, said: 'Employers often struggle to find shift cover at short notice, leading to disruption for customers. 'The Government's impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.' Paul Nowak, secretary-general of the Trades Union Congress, said the move 'shouldn't be the end of the story', saying the rate should be higher. 'We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.' It comes amid expected changes to the Government's employment rights Bill, including setting a nine-month probation period for new workers, rather than the six months previously announced. Ministers are also reportedly planning to axe the right to 'switch off' outside work hours, which was a central part of Sir Keir Starmer's manifesto promise aimed at strengthening employment rights. The policy would allow workers to ignore work-related emails and calls outside office hours, including the right to refuse to take on extra work at the weekends. However, ministers are expected to say in the coming week that the policy has been dropped when they table a series of amendments to the Bill, according to the Sunday Times newspaper. Sign in to access your portfolio
The Independent
03-03-2025
- Health
- The Independent
Low-paid workers to get 80% sick pay guarantee, says Labour
More than one million people on low wages will get improved sick pay conditions under new plans designed to boost living standards. About 1.3 million people paid less than £123 per week in the UK will get guaranteed sick pay equivalent to 80% of their weekly salary as part of changes expected to come in next year. Officials said the policy will keep more people off benefits because they will not need to quit their jobs while they recover. They added that some people will be up to £100 better off per week, compared to the current system. Work and Pensions Secretary Liz Kendall said: 'For too long, sick workers have had to decide between staying at home and losing a day's pay, or soldiering on at their own risk just to make ends meet. 'No-one should ever have to choose between their health and earning a living, which is why we are making this landmark change. 'The new rate is good for workers and fair on businesses as part of our plan to boost rights and make work pay, while delivering our plan for change.' The policy also means people will receive sick pay from their first day of illness, compared to the three consecutive days you must have been ill to qualify currently. Research from the Resolution Foundation has shown the UK has one of the lowest rates of statutory sick pay of developed nations. Currently, people who earn less than £123 per week do not get anything, while for better-paid full-time workers, statutory is just £116.75 per week, rising to £118.75 in April. Under the new plans, low earners will get 80% of their average weekly pay or the new rate of statutory sick pay, whichever is lowest. The policy was described as a 'fair compromise' by the British Chambers of Commerce, which represents businesses. However, the trade body said bringing forward sick pay to the first day of absence could hit companies. Jane Gratton, deputy director of public policy at the BCC, said: ' Employers often struggle to find shift cover at short notice, leading to disruption for customers. 'The Government's impact assessment did not produce compelling evidence on the day-one rights issue, so there may yet be unforeseen consequences.' Paul Nowak, secretary-general of the Trades Union Congress, said the move 'shouldn't be the end of the story', saying the rate should be higher. 'We urge ministers in future to raise the replacement rate for the lowest earners beyond 80% and undertake a wider review of the statutory sick pay rate.' It comes amid expected changes to the Government's employment rights Bill, including setting a nine-month probation period for new workers, rather than the six months previously announced. Ministers are also reportedly planning to axe the right to 'switch off' outside work hours, which was a central part of Sir Keir Starmer's manifesto promise aimed at strengthening employment rights. The policy would allow workers to ignore work-related emails and calls outside office hours, including the right to refuse to take on extra work at the weekends. However, ministers are expected to say in the coming week that the policy has been dropped when they table a series of amendments to the Bill, according to the Sunday Times newspaper.
