At a glance: reward and benefits headlines this week 29 May – 4 June 2020
The headlines you might have missed between 29 May – 4 June 2020.
Companies to pay 10% and 20% of furlough from September and October
HR Review: Rishi Sunak, Chancellor of the Exchequer has announced that employers will start having to pay towards the cost of the Coronovarius Job Retention Scheme (CJRS), from September companies must pay 10 per cent and then 20 per cent in October of the 80 per cent of wages the furlough scheme entitles to employees. Read story
How employees can claim tax relief on home working expenses – Ian Dickinson
Corporate Adviser: Millions of employees working from home due to Covid-19 are unaware of their right to claim expenses during this extraordinary period of time says UHY Nottingham tax director Ian Dickinson. Read story
Employers to pay furloughed staff pension contributions from August
Professional Pensions: Employers will be required to pay a proportion of furloughed staff costs from August, Rishi Sunak has announced today. Read story
British Bankers’ Association completes £95 million bulk annuity transaction
Employee Benefits: British Bankers’ Association (BBA) pension scheme has completed a £95 million bulk purchase annuity transaction. Read story
BP to pay 5,000 employees the real living wage
Employee Benefits: Oil and gas organisation BP is to increase hourly pay rates for its 5,000 UK retail employees, to bring these in line with the real living wage rates recommended by the Living Wage Foundation. Read story
46% of employees cancel seven days of annual leave in 2020
Employee Benefits: Just under half (46%) of full-time employees are cancelling an average of seven days annual leave in 2020, according to research by Timetastic. Read story
How To Support Employee Wellbeing As Lockdown Eases
Cover: Health Shield's Carl Laidler explores occupational health, employee emotional support and navigating the 'new normal' post-lockdown. Read story
Essential businesses hit by £6.5bn cost of lost working days due to Covid-19
Employer News: Employee absences caused by the coronavirus pandemic have cost the economy more than £6.5 billion, new data from leading absence management system FirstCare has found. Read story
Nationwide to close DB scheme to future accrual
Pensions Age: Nationwide Building Society has announced that it will close its defined benefit (DB) pension scheme to future accrual on 31 March 2021. Read story
Which companies are going the extra mile for employees during coronavirus?
HR Magazine: We shine a light on the effort businesses have made, big and small, to support their staff and the community during the coronavirus pandemic. Read story
Working from home increases presenteeism problems for employers
Corporate Adviser: More that one in three workers (35 per cent) have continued to work while unwell during lockdown according to a new research by Canada Life. Read story
Coronavirus ‘test and trace’ system could prompt employment disputes surge, experts warn
People Management: Staff fears around insufficient measures keeping them safe at work and the prospect of redundancies could also spur an increase in tribunal claims, employers cautioned. Read story
Fuller’s gives 5,000 staff early access to pay
Employee Benefits: Pub and hotel chain Fuller’s is giving its 5,000 employees early access to their furlough pay during the Covid-19 (Coronavirus) pandemic. Read story
NHS healthcare workers in England to be paid for overtime hours worked
Employee Benefits: NHS Employers, part of the NHS confederation, has updated a pay agreement for NHS healthcare employees in England to ensure they are paid for any additional hours they work above their allotted hours. Read story
More women are losing jobs in lockdown
HR Grapevine: The gender pay gap is something numerous companies have tried to stamp out. To contribute to this, each year organisations with a headcount of 250 or more employees are required to report their gender pay gap, in an attempt to help determine how men and women are paid differently across the UK. Read story
Employers to resume paying furloughed workers' pension contributions from August
Pensions Age: Employers will be required to resume the payment of minimum workplace pension contributions to furloughed workers from August. Read story
DB funding - May 2020: FTSE 350 deficit rises by £20bn amid continuing volatility
Professional Pensions: Every month, several firms issue trackers of the aggregate defined benefit (DB) scheme funding position. See here for the May 2020 estimates on the various measures. Read story
Accounting bodies release Covid-19 pension reporting guidance
Professional Pensions: Three accounting bodies have published specific Covid-19 guidance for the compilation of pension scheme accounts, recognising that “it can’t be business as usual”. Read story
New-look job retention scheme – what’s the detail now it’s been announced?
People Management: As employer groups welcome the chancellor’s approach to winding down furlough, People Management gives the lowdown on the new system. Read story
Aegon UK enhances employee wellbeing programme for 2,000 staff
Employee Benefits: Aegon UK has enhanced its employee wellbeing programme by launching a series of wellbeing videos to support its 2,000 staff, during the Covid-19 (Coronavirus) pandemic. Read story
Woolworths Group rewards 100,000 employees with shares
Employee Benefits: Australian retailer Woolworths Group is giving 100,000 employees in Australia and New Zealand group shares to reward them for their efforts during the Covid-19 (Coronavirus) pandemic. Read story
84% of employers utilise benefits technology
Employee Benefits: The majority (84%) of employers use some form of benefits technology, with the most popular option being a staff intranet (63%), according to research by Employee Benefits. Read story
Herbert Smith Freehills outlines pension cost saving tips for employers
Pensions Age: Herbert Smith and Freehills has outlined four pension cost saving steps for employers, as many firms look to reduce costs and preserve cash amid the ongoing coronavirus pandemic. Read story
Labour leader Keir Starmer calls for workers to know how much colleagues are earning
HR Magazine: Labour party leader Keir Starmer has announced his support of the Fawcett Society’s ‘right to know’ campaign which allows workers to know how much their colleagues are earning. Read story
Employee confidence in businesses dropping due to handling of COVID-19 crisis
HR Review: Around the world as the COVID-19 crisis continues, more than half of employees’ confidence in their company is falling due to how their organisation is being run and how much time their bosses make for staff. Read story
Covid-19 creating stark savings divide
Corporate Adviser: The coronavirus has affected the majority of people’s savings habits – but in starkly different ways according to new research from Aegon. Read story
Direct Insurance Group offers employees permanent remote working policy
Employee Benefits: Direct Insurance Group (DIG) has committed to a remote working policy for all 160 employees, following the Covid-19 (Coronavirus) pandemic. Read story
Pension-related complaints down 26% in 2019/20 - FOS
Pensions Age: The Financial Ombudsman Service (FOS) received 5,528 new complaints about pensions in the 2019/20 financial year, down by 26 per cent on the year before. Read story
UK HR directors predict large rise in gig working
HR Magazine: A new report by AON, Gig Economy: Financial Security of Greater Control, found 18% of HRDs believed 75% or more of their workforce will be made up of contractors by 2025. Read story
Employees have not been provided equipment to work remotely
HR Review: Over one-tenth of UK employees said they still have not been given the proper equipment to effectively work remotely. Read story
Employers urged to provide more support for cancer survivors
Corporate Adviser: More than a third of employers do not provide financial support for staff diagnosed with a serious illness such as cancer. Read story
Nissan proposes DB scheme closure as sponsor pressure mounts
Pensions Expert: Workers at Nissan’s manufacturing plant in Sunderland could be facing a cut to their benefits, with the carmaker proposing to close its defined benefit scheme, while experts said the Covid-19 pandemic could push more sponsors to follow suit. Read story
Work is detrimental to employee wellbeing, CIPD survey finds
People Management: Experts call on government and employers to focus on job quality, amid warnings the coronavirus pandemic is exacerbating the problem. Read story
Southwest Airlines offers employees six months leave at 50% pay
Employee Benefits: Southwest Airlines is offering employees the opportunity to take temporary leave at 50% pay to deal with the financial ramifications of the Covid-19 (Coronavirus) pandemic. Read story
Amazon provides emergency family care for 650,000 employees
Employee Benefits: Technology giant Amazon is offering subsidised family care to 650,000 full and part-time employees in the US. Read story
50% of employers are topping up employees’ furlough pay
Employee Benefits: Half (50%) of employers are topping up employees’ furlough pay during the Covid-19 (Coronavirus) pandemic, according to research by Willis Towers Watson. Read story
Pension Schemes Bill still 'a priority' despite Covid-19 delays – DWP
Pensions Age: The Pension Schemes Bill remains "very much a priority" despite delays amid the Covid-19 pandemic, the Department for Work and Pensions (DWP) has said. Read story
Pennon reduces DB deficit by £52.3m with accelerated contributions
Pensions Age: Pennon has reduced its defined benefit (DB) deficit by £52.3m to £8.5m in the 12-month period ending 31 March 2020, according to the water supplier’s full year results. Read story
Twitter makes “work from home” permanent – who will follow?
HR News: Twitter’s CEO Jack Dorsey announced that the company will remain in remote mode indefinitely as they have found this way of working more efficient, convenient, and effective. Read story
Lack of clarity and uncertainty prompting workers to break furlough rules
HR Magazine: Unclear guidance could be causing workers to break furlough as nearly 7 in 10 workers in a Censuswide study have admitted to checking their work inbox during their furlough period. Read story