July HR News Roundup

Welcome to our July HR News Roundup! A certain employer is feeling the heat, and we’re not talking about the European heatwave. No, we’re referring to those shocking allegations of bullying and harassment at McDonald’s restaurants across the UK. This month, we lead with that story, which sadly adds another big name to the list of employers battling with seemingly toxic workplace cultures.

As holiday season is upon us, we’ve also uncovered a couple of travel-related articles around the importance of switching off on annual leave, and how to respond if your employees get stranded abroad. In other news we share the latest unemployment and recruitment stats, an insight into the needs of Gen Z, and a significant milestone in a story we’ve been following since the start of the year: Flexible working from day one. Time to grab a brew and take it all in!

McDonald’s employees allege abuse at work

We’re sure you haven’t missed the news about the BBC’s investigation into McDonald’s. More than 100 former and current employees have come forward with allegations of bullying and harassment against the fast-food chain. The majority of the alleged incidents relate to sexual assault and harassment, with others suggesting racism and homophobia. Multiple workers told the BBC that McDonald's managers at the outlets across the UK were responsible for the harassment and assaults.

The story breaks just a week on from a Bullying and Respect at Work bill being proposed to parliament and follows accusations of toxic culture and bullying at ITV and within the government.

What does the proposed Bullying and Respect at Work bill mean for HR?

A Bullying and Respect at Work bill was proposed to parliament by Rachel Maskell, Labour and Co-operative MP for York Central on 11 July. If the bill is passed into law it will become mandatory for businesses to set up formal mechanisms for reporting and investigating bullying.

This People Management article examines the pros and cons of the potential legislation, including its impacts on HR departments and questions around the definition of bullying.

Flexible Working Bill passes through Parliament

On 16 July the Employment Relations (Flexible Working) Bill progressed through a third reading in the House of Lords, meaning it now only requires royal assent before becoming law. Employer News looks at some of the implications for employers as flexible working looks set to become an employment right.

Unemployment and wages on the rise as job vacancies decline

The latest figures show unemployment in the UK increased during the first quarter of 2023, beyond anticipated levels. According to the latest report by the Office for National Statistics (ONS), the UK’s unemployment rate soared to 4% during the three-month period ending in May, a notable increase from the previous three-month period’s rate of 3.8 percent. Wages are also rising, with a 7.3% increase in basic earning during the period Feb - April 2023.

At the same time, the labour market is effectively shrinking. Data from the recruitment company, Reed, suggests a 17% decrease in job postings in the first half of 2023 compared to last year. During the same period there has been a 29% rise in job applications, signaling a shift in the balance of power between employers and employees. The IT and telecoms sector has seen a 72% surge in applications, followed by a 60% rise in the education sector.

What does all this mean for HR? With fewer job vacancies than in previous months, there is strong competition for roles, offering more choice to employers looking to fill roles. The days of the job seeker’s market appear to be numbered. On a positive note, financial prospects for successful candidates are improving.

Legal considerations around employees stranded abroad

As thousands of families jet off for some well-earned summer sun, July looks set to have the highest number of UK flight departures since before the pandemic. It’s great when holidays go to plan and employees return refreshed and refocused, but sometimes flights are delayed or cancelled, ports get blocked and air traffic controllers go on strike. And let’s not forget the chaos caused by the Icelandic ash cloud back in 2010!

So what happens when employees are late getting back to their day job following annual leave? Can you legally ask people to work from abroad? Are they eligible for normal pay if they don’t return to work at the agreed time? People Management explores the legal considerations and employment rights issues thrown up by holiday delays.

Remote working makes it harder to switch off on leave

Staying on the subject of holidays, new research by Ceridian has found that not everyone finds they can truly unplug while they’re away from work. Their 2023 Pulse of Talent report found that 75% of people said taking a holiday is important for their mental health and 46% said taking time off improves their productivity at work. However, just under half of UK respondents say they don’t switch off completely when on annual leave, creating implications for wellbeing and potential burnout.

One way to prevent people working whilst on holiday is to ensure they leave work equipment at home and write this into your Annual Leave policy. If you would like any guidance in this area, please get in touch.

Financial Services: Are you prepared for new Consumer Duty obligations?

The new Consumer Duty introduced by the FCA comes into effect on 31 July. HR functions need to understand their role and responsibility in delivering the Duty, which sets out new higher standards for the sale and renewal of financial products and services. This useful article in HR Magazine outlines the implications for disciplinary policy, staff training and competencies, job descriptions, incentives and performance management.

What matters most to Gen Z in the workplace?

In this insightful piece on Employer News, Jacob Metcalf of Big Partnership explores what matters most to younger talent in the workplace. Understanding the needs of future employees is key to recruiting and retaining top talent. Jacob summarises the top five things that matter most to Gen Z-ers, including work-life balance, collaborative spirit and pushing the boundaries of innovation.

Further reading

Take a look at our blogs on Workplace Bullying, Banter or Bullying? and What is Organisation Health? to explore some of the key topics in this month’s roundup.

How we can help you

If you’d like to discuss any of the issues raised in this blog, get in touch with us today on 0161 941 2426. We’re here to help.