O cardo and Next

 

Ocado and Next cut sick pay for unvaccinated isolating staff

Ocado and Next have cut sick pay for unvaccinated staff that must self-isolate because of Covid exposure, the BBC has learned.

Both retailers will continue to pay full sick pay to unvaccinated workers if they test positive for the virus.

Furniture giant Ikea is also among employers making similar moves, as staff absences rise.

Next said it was an "emotive topic" but that it had to balance staff and shareholder needs.

It is unclear when next made the change but it is believed to have been recent.

Online grocer Ocado confirmed on Thursday that it had adopted the same policy as Next this week.

Next currently pays store sales consultants and stock assistants between £6.55 and £9.21 an hour and warehouse operatives between £9.30 and £11.26 an hour many business listings.

But unvaccinated workers who are required to isolate could now receive as little as £96.35 a week - the Statutory Sick Pay minimum - unless there are mitigating circumstances.

·         Who needs to self-isolate now and for how long?

·         Ikea cuts sick pay for some unvaccinated staff

·         Covid staff shortages will continue into New Year

·         How can I get my booster jab?

Last month, official self-isolation guidance was relaxed for people who have been jabbed, meaning they do not need to isolate if they have been exposed to a positive case.

But there was no change to the guidance for unvaccinated close contacts, who must still self-isolate for 10 full days after their date of exposure.

What are your sick pay rights?

Statutory Sick Pay (SSP) is the minimum amount employers must pay, but some employers offer more than SSP - this is normally known as a company or contractual sick pay.

Beth Hale, the partner at employment law firm CM Murray, said claims of direct discrimination due to this kind of sick pay policy were unlikely to succeed as being opposed to vaccination was "unlikely to be a protected belief for the purposes of the Equality Act."

"While the policy may have a disproportionate impact on those from certain ethnic or religious groups (which could give rise to a claim for indirect discrimination), an employer may well be able to justify the policy on the basis of their legitimate business needs," she added.

She said where employers are struggling with significant staff absences because of the large case numbers, it "seemed reasonable" that they may want to take steps to encourage vaccination amongst their workforce in this way.

But she added that employers need to be "careful that policies are communicated carefully and sensitively" to avoid employee relations issues.

Many companies, including next, faced labour shortages in 2021 and some are now are seeing mass absences due to the more infectious Omicron Covid strain.

This week it emerged that Ikea, which employs about 10,000 people in the UK, had changed its policy on unvaccinated staff that have been exposed to coronavirus.

Sick pay cuts will also be implemented at Wessex Water and in the US several major companies have started penalizing un-jabbed workers.

However, the major UK supermarkets and Amazon told the BBC their policies had not changed.

NeXT’s move comes days after it said it was putting up its prices to offset higher wage and manufacturing costs.

The retailer said prices for its spring and summer clothing and homeware ranges would climb by 3.7% from a year earlier, while it expects a 6% rise for autumn and winter goods.

The company forecasts full-year sales to rise by 7% overall, but it warned it could face a tougher trading environment in 2022 given the financial pressures facing households, such as higher energy bills.

In October last year, Next boss Lord Wolfson said the retailer had struggled with labour shortages because workers were not available in the places needed and seasonal workers had proved difficult to recruit.

The executive, who supported Brexit, said the problem could be solved by companies hiring overseas workers and paying “visa tax" business listings.

Ikea cuts sick pay for unvaccinated staff forced to self-isolate

Ikea has cut sick pay for unvaccinated staff that needs to self-isolate because of Covid exposure and in some cases for workers who test positive.

The retail giant acknowledged it was an "emotive topic" but said its policy had to evolve with changing circumstances.

From this week, sick pay cuts will be implemented at Wessex Water and in the US several major companies have started penalizing unjabbed workers.

It comes as firms struggle with mass staff absences and rising costs.

At Ikea unvaccinated workers, who do not have mitigating circumstances, who test positive will be paid in line with company sick pay.

Unvaccinated workers, without mitigating circumstances and required to isolate owing to being identified as close contact, could now receive as little as £96.35 a week - the Statutory Sick Pay (SSP) minimum.

Self-isolation guidance for people who have been jabbed was relaxed last month. However, there was no change to the guidance for unvaccinated people who come into contact with positive cases, and who must still self-isolate for 10 full days after their date of exposure to the virus.

·         Covid staff shortages will continue into New Year

·         Ikea to raise prices as supply problems bite

Average wages at Ikea are between about £400 and £450, depending on location and, as is the case at many companies, staff gets enhanced sick pay. The move was first reported by the Mail on Sunday.

Ikea, which employs about 10,000 people in the UK, said in a statement: "Fully vaccinated co-workers or those that are unvaccinated owing to mitigating circumstances which, for example, could include pregnancy or other medical grounds, will receive full pay.

"Unvaccinated co-workers without mitigating circumstances that test positive with Covid will be paid full company sick pay in line with our company absence policy free business listings.

"Unvaccinated co-workers without mitigating circumstances who have been identified as close contacts of a positive case will be paid Statutory Sick Pay."

In England, people who are vaccinated with at least two doses need not self-isolate if they have been in close contact with someone infected with Covid. Unvaccinated people contacted through the government's test-and-trace system must still isolate by law.

Many companies complained of labour shortages throughout 2021, and now are seeing mass absences due to the more infectious Omicron Covid strain.

Prime Minister Boris Johnson repeated on Monday that the data continued to show those people most seriously affected by Omicron remained unvaccinated.

Wessex Water's sick pay rule change comes into force this week.

Any employee without at least one Covid-19 vaccination - who does not have a valid medical reason - or does not have a confirmed vaccination appointment, will get only statutory sick pay if required to self-isolate due to close contact with someone testing positive.

A Wessex Water spokesperson said absences have soared this year: "The vast majority of our workforce has been vaccinated and it's important as a company providing essential services with key worker employees, the remainder gets vaccinated to protect themselves, customers, and their colleagues.

"Absences due to Covid have doubled in the last week, so we need everyone to be available so we can continue to provide uninterrupted essential water and sewerage services."

Legal risks

The company said that throughout the pandemic it had not furloughed staff and those self-isolating had received full payment.

Last year, supermarket Morrisons cut sick pay terms, while several companies, including banking giant Citigroup, introduced a "no jab, no job" policy. Delta Airlines imposed a surcharge on unvaccinated staff members of its healthcare plan.

Ben Willmott, head of public policy at the Chartered Institute of Personnel and Development (CIPD), told the BBC there were pros and cons with changing sick pay terms for certain workers.

It could encourage staff to get vaccinated, but others might be less likely to test themselves or self-isolate because they could not afford time off work at the statutory rate of about £96.

His organization's official guidance was not to differentiate between employees, as the consequences could be complex and there were potential legal problems.

"You would have to manage it on a case-by-case basis because of legal risks," Mr Willmott said.

Earlier this month, David Josephs, boss of food importer and retailer All Greens, told the BBC that staff at some firms was ignoring Covid rules for financial reasons.

"We know that in our sector a lot of staff does not get paid sick pay. Ours do - but staff that are on limited contracts or on minimum wage cannot afford to be off work," he said.

Employment lawyer Sarah Ozanne, of CMS, also warned of complex legal issues and said striking the right balance was difficult.

"This action [by Ikea] seems more of a reaction to staff shortages and how to manage them than any intended 'discrimination' of the unvaccinated," she said.

"But employers should consider whether their actions are proportionate as a means of achieving the aim of getting employees back into work."

More on this story

·         Covid staff shortages will continue into New Year

·         Ikea to raise prices as supply problems bite

Related Topics

·         Companies

·         Ikea

·         Coronavirus pandemic

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