Pay ratio reporting requirements take effect on January 1st
From 1st January 2019 the new pay ratio reporting requirements, passed last summer and applying to all firms UK quoted companies with more than 250 employees, will be in effect. As part of the directors’ remuneration report, companies will have to publish the ratio of the Chief Executive’s pay to the 25th, 50th and 75th percentile pay levels of all full-time equivalent UK employees. The first figures should be released in annual reports in 2020, covering the figures from 2019. Business Secretary Greg Clark commented that, while most companies in Britain act responsibly. “We do, however, understand the frustration of workers and shareholders when executive pay is out of step with performance, and their concerns are not heard.”
Uber employment tribunal ruling upheld by Court of Appeal
The Court of Appeal has upheld previous rulings that Uber drivers should be classified as workers, rather than self-employed contractors. This status entitles them to holiday pay and a guaranteed minimum wage. As one of the archetypal ‘gig economy’ professions, the Uber drivers’ case is seen as a key landmark for employment rights across a wide range of similar professions. Nigel Mackay of Leigh Day, the solicitors firm representing the drivers, commented that Uber has yet to give drivers “what three legal decisions have ruled they are entitled to – holiday pay and to be paid at least the minimum wage.” Uber have announced they will be appealing the decision to the Supreme Court, where a final definitive ruling is expected.
Government to lower threshold for information and consultation of employees
As part of their response to the Matthew Taylor Review of Modern Employment Practices, the department for Business Energy and Industrial Strategy has announced they will be accepting Matthew Taylor’s recommendation to lower the threshold in the information and consultation of employees regulations. Currently 10% of employees have to make a formal request to set up information and consultation mechanisms in order for the regulations to take effect and their employer to be obligated to respond. The government have announced they will be bringing forward legislation to reduce this threshold to just 2%, with a minimum of 15 employees. It is expected that this change could lead to a large increase in the number of companies required to set up consultative bodies with their workforces.