Cost of Living Crisis: What can Employers do?

With the cost-of-living skyrocketing in recent months, the pressure of the cost-of-living crisis has become inescapable. As household bills rise and budgets tighten, flexible working is becoming increasingly important for many employees across the UK.

It is crucial now more than ever, that employers look at ways in which they can support their employees through this crisis. Whilst many employers may look to increase pay in line with the Living wage, or offer Salary Sacrifice schemes as cost saving solutions, where employers are unable to keep up with the soaring inflation rates, they may need to look at alternative ways in which they can help their staff.

Another measure that employers can look to explore in support of their employees, is the offer of flexible working. Providing employees with the option of flexibility around where they work can not only help benefit them financially, but also ensures that employees feel comfortable in making the best decisions for their circumstances.

Immigration Update - The Home Office announces new Immigration Skills Charge exemption from January 2023

Sponsors of skilled workers applying under the Skilled Worker and Global Business Mobility Senior or Specialist Worker routes are required to pay an additional fee for the Immigration Skills Charge (ISC) every time they assign a new Certificate of Sponsorship (CoS) to a worker, with some limited exceptions.

Given that from 1 January 2021, all UK employers must have a sponsorship license to employ migrant workers under certain work visa routes, the ISC has become payable by a large number of businesses.

Outcome of the Government Response to the Consultation on Making Flexible Working the Default

The Government has recently published their response to the Consultation on Making Flexible Working the Default, which closed around 12 months ago.
 

Key takeaways, which are a must for HR professionals and managers to be aware of, are that the Government has committed to:
 

• Removing the 26-week qualifying period before employees can request flexible working;
• For the time being, not making any changes to the current list of 8 business grounds available for employers to reject requests;
• Requiring employers to consult with employees, as a means of exploring available options, before rejecting a request;

The annual Work and Pensions rate increases taking effect in April 2023

The Department for Work and Pensions has published the annual rate increases that will take effect from 1st April 2023. As set out in the Autumn Statement, the government has followed the recommendations of the Low Pay Commission (LPC), intending to support the living standards of lower paid workers during the cost-of-living crisis. The annual increase to the National Minimum Wage (NMW) and National Living Wage (NLW) reflects an increase of up to 10.9%.

The changes are as follows:

• 23 and above - £10.42 (previously £9.50)
• 21-22 - £10.18 (previously £9.18)
• 18-20 - £7.49 (previously £6.83)
• 16-17 - £5.28 (previously £4.81)
• Apprentices - £5.28 (previously £4.81)

Harpur Trust v Brazel - government consultation paper announced

In July 2022, the Supreme Court held that holiday entitlement under the Working Time Regulations 1998 for permanent part-year workers should not be pro-rated and that anyone on a year-round contract is entitled to 5.6 weeks of holiday pay, calculated using a holiday entitlement reference period of 52 weeks to determine their average weekly pay, ignoring any weeks they did not work. The government estimates that 320,000 and 500,000 permanent term-time and zero-hours contract workers will receive more holiday entitlement as a result of this. Whilst a lot of the focus has been on the Education sector, the Government believe that 63% of affected workers, work in other sectors.

Forbes' Employment Team would like to introduce Gabriela Hammond as Head of HR Consultancy.

Gabriela brings with her more than 20 years of people management experience, having led the HR function for the UK arm of leading door and window manufacturer VEKA UK Group. Learn more about Gabriela and her newly created role of HR Consulatancy here.

Our HR Consultancy service has been created to reduce additional pressures and legal risks involved. This service can assist with:

• HR Strategy
• Organisational Design
• Succession Planning
• Change Management
• Redundancy
• Employer Branding
• Recruitment and Retention
• Reward & Recognition
• Performance Development
• Communication
• Employee Relations
• Engagement and Wellbeing

If you would like any further information or would like to set up a meeting with Gabriela you can contact her here:

Gabriela Hammond, Head of HR Consultancy

E: Gabriela.Hammond@forbessolicitors.co.uk

T: 07976 253253

Upcoming employment event

• Contract Management: from planning and procurement to disputes and determination - 7th February - Book your place here

• Redundancy and Restructures Masterclass - 28th February - Book your place here 

• Managing a global workforce seminar with RSM - 1st March - Book your place here

• East Lancashire Chamber of Commerce HR Forum: Menopause for Thought – Why Your Business Should Embrace The Change sponsored by Forbes Solicitors - 7th March - Book your place here

• Recruitment and Retention - 18th April - Book your place here

• Employee engagement - 23rd May -  Book your place here

• Social Media - 27th June -  Book your place here