Our latest analysis of pay reviews finds scant evidence that the rising cost of living is reflected in the increases being awarded during the crucial spring months of 2008 when many employees receive their annual salary uplifts

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Employment Review - Policy, Practice and Law in the workplace
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  THE EDITOR'S MESSAGE Issue 900  
 INFLATION BITES INTO PAY RISES
NEIL RANKIN

Our latest analysis of pay reviews finds little evidence that the rising cost of living is reflected in the increases being awarded during the crucial spring months of 2008 when many employees receive their annual salary uplifts.

Based on the largest survey of its kind, our findings show that only one-third of increases are higher than a year ago, despite growing inflation. In fact, the average pay award has remained consistently below retail prices index inflation for two years.

Continuing our reward theme, this issue includes part two of our annual overview of employers' benefits and allowances practices and focuses on health-related benefits.

This newsletter also contains three contrasting case studies, each of which looks at how an employer has tackled a particular issue of wide concern. These are:

Our casenotes in this issue highlight rulings with implications for the contractual status of the employment relationship and allegations of unfair dismissal by whistleblowers.

The government's far-reaching proposals for its single Equality Bill have just been announced, and we include two items covering the main points of its intentions. Naturally, we will keep you informed of these and other issues of concern.

XpertHR Neil Rankin,
Section Editor,
Employment Review

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  EMPLOYMENT TRENDS

HR for sale at Broadway Homelessness and Support

This case study focuses on an innovative project by the Broadway Homelessness and Support charity involving the creation of its own external HR consultancy. Designed to provide a high-quality HR service for smaller agencies, the venture has been acclaimed by its customers and has helped to raise their standards of HR management as well as generate much-needed income for its sponsor.

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The pros and cons of women-only coaching provision

The under-representation of women at senior levels calls for positive action in the form of coaching and mentoring exclusively for females. Or does it? This article from our sister publication Training & Coaching Today weighs up the arguments.

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International: ISS signs new global agreement

Multinational cleaning and catering company ISS has revised its recognition and procedural agreement with trade unions, agreeing to honour International Labour Organisation codes and support union membership among its 440,000-strong workforce.

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Shared HR services in Cheshire NHS trusts

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  PAY AND BENEFITS

Analysis

Pay awards stay firmly below inflation, at 3.3%

The median pay award climbed back to 3.3% in the three months to 31 May 2008, according to the latest monthly analysis of pay trends from IRS.

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Survey: Benefits and allowances (2) - health-related benefits

The second article in our annual four-part series provides an overview of health-related benefits on offer in 277 organisations.

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News

Benefits worth up to one-third of basic salary

A report based on a database of individuals responding to all Celre surveys (including the IT survey), as well as the annual Celre company background questionnaire and the IT fringe benefits questionnaire, looks at some of the most popular benefits on offer in today's workplaces.

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What will the credit crunch mean for finance sector pay?

Research from professional services consultancy, The Smart Cube, examines the likely impact on compensation packages in City of London finance firms as a result of the credit crunch.

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IT staff see above-inflation pay increase

IT and computer staff have seen an average 4.8% increase in their basic pay over the past year, according to the latest research from Celre.

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Workers value healthcare provision over bonuses

UK workers perceive the provision of healthcare to be of greater value than participation in a bonus scheme, according to Benenden Healthcare Society. These are among the key findings of a survey of 1,001 workers undertaken in April 2008.

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NHS medical directors: median pay rises to £154,896

Research from Capita Health Service Partners examines the pay of 98 medical directors in the NHS.

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Germany: Eight sectors apply for recognition of binding minimum wage

Trade unions and employers' associations in eight industries have submitted applications for their collectively agreed sectoral minimum wages to be made legally binding for all employers and employees in their sector, using the provisions of the Posted Workers Law.

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BBC scheme launches salary sacrifice

The BBC has written to members of its final-salary pension scheme, informing them that they will be enrolled in its new salary-sacrifice benefits scheme as of 1 June 2008, unless they ask to opt out.

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Pay reports

Anglian Water: 4.07% inflation-linked increase

First Direct: spot rates increased by up to 4%

Kodak management: 2% plus merit rises

Pay review update: 27 June 2008

The latest pay review update table contains pay settlements at Nissan Motor Manufacturing, Reuters, Yorkshire Water and many more.

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Statistics and forecasts

The datafile contains the most recent inflation, earnings and labour market statistics, pay settlement data and inflation and earnings forecasts. Our panel of City and academic forecasters is expecting headline inflation to fall gradually throughout the remainder of the year, ending 2008 at 2.9%. Average earnings growth is expected to average 4% in 2008 and 3.9% in 2009.

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Pay Intelligence, June 2008

Latest IRS Pay and Benefits Bulletin

Survey: Benefits and allowances (1)

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  ATTENDANCE AND ABSENCE

Case study: Great Ormond Street Hospital's absence management

Great Ormond Street Hospital for Children has developed a raft of policies and initiatives to manage absence and work-related stress among its workforce, but it believes that the role played by line managers makes the difference.

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Fit for work: interview with Dame Carol Black

The government's national director for health and work speaks about proposed changes to sick notes and occupational health services.

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Statutory procedures boosted stress claims

Participants at a recent Royal Society of Medicine seminar heard how “cumbersome” statutory dispute resolution procedures have led to a rise in compensation claims for work-related stress.

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How employers train line managers in absence management

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  RECRUITMENT AND RETENTION

Case study: Citi's drive to encourage maternity returners

Financial services company Citi's award-winning strategy to improve the representation of women includes a series of initiatives to encourage women to return to work after maternity leave.

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International: Polish recruiters look eastwards

The significant westward movement of Polish workers to states such as the UK has created severe skills shortages in their native country, prompting Polish recruiters to look eastwards to the Ukraine for new hires.

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Diversity at the Royal Bank of Scotland

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  EMPLOYMENT LAW

News

Single Equality Bill: the government's proposals

Employment Law Bulletin editor Joanna Stubbs summarises in her blog post the main points of the forthcoming single Equality Bill, based on the government's recently issued proposals.

Information on Equality Bill published

The government has published a document setting out information on the content of the forthcoming single Equality Bill.

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Government consults on right to request time off for training

A consultation has been launched on the introduction of the right to request time off for training.

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Casenotes

Employment status: Consistent Group Ltd v Kalwak and others

The Court of Appeal remits to a fresh tribunal the issue of whether or not Polish nationals engaged by an agency to work as meat packers for a third party were employees of the agency.

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Whistleblowing: Kuzel v Roche Products Ltd

The Court of Appeal holds that, having rejected the potentially fair reason for dismissal put forward by the employer, the tribunal was not obliged to accept the automatically unfair whistleblowing reason put forward by the employee. It was entitled to find that the employer had at least proved that this was not the reason for dismissal.

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Contracts of employment: Enfield Technical Services Ltd v Payne; BF Components Ltd v Grace

The Court of Appeal holds that a genuine error in the categorisation of employment status will not be enough to establish illegality where there has been no express or implied misrepresentation of the facts of the working arrangements.

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Model policies and documents

Contract clause on deputising/acting-up payments

Use this document to set out employees' entitlement to deputising/acting-up payments. [full XpertHR subscription required]

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Attendance allowance contract clause

Use this document when considering implementing an attendance allowance. [full XpertHR subscription required]

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RELATED ARTICLES ON XPERTHR

Legal timetable

Forthcoming law

Statutory rates

Quick reference

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 EMPLOYMENT INTELLIGENCE

This week on the XpertHR/IRS blog

Heyday's legal challenge to the UK default retirement age moves a step nearer resolution now that proceedings have begun in the European Court of Justice.

Other recent postings include:

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 BENCHMARKING WITH IRS SURVEYS

Taking part in our IRS surveys provides a fast, free and easy way to benchmark your HR policies and practices against competitors and other employers. In return, you'll receive a complimentary copy of the relevant survey's findings. We are currently researching:

Details of these and other IRS benchmarking projects are available on our redesigned IRS surveys website, together with links to Celre salary surveys. Our site also offers a registration facility that ensures you will be notified of forthcoming surveys in your areas of interest.

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  MORE FROM IRS...

Today's tip: using the XpertHR line manager briefing service

The XpertHR line manager briefing service provides clear, simply written guidance on employment law and good practice for line managers. The briefings assume no previous knowledge of the law or principles of human resource management. They can be used as a training tool or as an information resource to ensure that line managers deal with job applicants and manage workers in accordance with the law and good practice.

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This newsletter now has a "print all" button. Before pressing it, please be aware that this uses a lot of paper. Recent editions have run to 170 pages, and others may be longer in future. For the sake of the planet and your toner cartridge, consider whether you need to use it. If you press "print all", this will send to your printer all articles linked from the newsletter. It will not print chapters of the employment law reference manual or blog posts. Print all articles.

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