eResponse Recruitment

National Minimum Wage to rise this October

Gordon Brown announced today that the National Minimum Wage (NMW) will rise from October.

Adults who receive GBP5.52 an hour will receive GBP5.73, 18-21-year-olds will get a rise of 17p an hour to GBP4.77 and 16-17-year-olds will be paid GBP3.53, up from GBP3.40.

The government said nearly one million low paid employees, two thirds of them women, will benefit from the increase.

The government has also boosted funding for enforcement of the NMW and is planning tough new penalties for rogue employers who underpay staff as part of the Employment Bill, now before the Parliament.

Business Secretary John Hutton said: "The National Minimum Wage remains one of the most important rights introduced by the government in the last decade. Before it was introduced, some workers could expect to be paid as little as 35p an hour; our legislation has ensured that can no longer happen."

"I am proud of the minimum wage; it makes a real difference to the lives of many of our lowest-paid workers and protects them from exploitation. It also creates a level playing field for business and boosts the economy."

When the NMW was launched the main rate was GBP3.60.

New measures which aim to enforce the minimum wage and crack down on rogue employers include a fairer method for dealing with NMW arrears, calculated so that workers do not lose out as a result of underpayment and increasing the maximum penalty for non-payment of the NMW to an unlimited fine. The most serious cases of non-compliance will be tried in a crown court.

Staff Discipline

Almost half of employers avoid disciplining staff through fear of being sued, accordingly to research conducted by employment law firm peninsular.

The research found that 89% of employers would discipline staff if they were legally confident.

It found that only 79% of employers fear that because of an increase in employee rights, its only a matter of time before they are taken to an employment tribunal.

David Price, head of employee relations at Peninsula, says: "Many businesses these days are so convinced that employment law is weighted on the side of the employees, that they are afraid to tackle serious issues in the workplace. Employers should not be afraid of using disciplinary and grievance procedures. If used correctly they ensure that everybody is dealt with fairly and reasonably. Employers must ensure that they are compliant with current legislation as there is confusion among employers as to what rights employees have today."

Wages on the Rise

The average salary for a job advertised in the UK over the last 6 months has risen again to £31,969 a Year.

Job search engine www.allthetopbananas.com which analysed 875,560 jobs to produce it's salary index found the average advertised salary has gone up £679 since the salary index was introduced in October.

London stays top of the regions with the highest average advertsied salary at £38,504

West Midlands has moved up a place in the index with our average salary now £29,169

Dave Martin, the MD of www.allthetopbananas.com is quoted: "The salary index has shown there is a definate trend of average advertised salaries increasing across much of the UK. If, as some people predict, confidence in the UK economy cools in the first few months of 2008 it will be interesting to see how that affects advertised salaries."

Paul Alekna of eResponse Recruitment commented that more so than ever businesses recognise the importance of their core staff and as such are now prepared to pay more for the right employee. This, coupled with core industries still suffering with skills shortages, means we are unlikely to see this reduce during 2008.

Winding down for Christmas?

One in Three workers will be winding down for Christmas from 5pm today a teletext survey revealed. According to the research some 9m who admitted they will do virtually do no work next week and instead induldge in Surfing the web, Christmas Shopping and Office Gossip!

Half the workers confessed to noticably slow down in the build up to the Christmas break with more than a third revealing 14th December when the holiday feeling really starts to kick in.

The survey of more than 2,500 people also find that nearly half thought that it was acceptible to come into work with a hangover during the pre-christmas week.

A fifth of those polled said they would spend up to 5 hours online at work looking for holidays for next Year or buy gifts for friends and family.

And whilst there's plenty of Christmas spirit at eResponse HQ customers can rest assured we're still working through last minute pre-January requirements.

Tough Penalties for Rogue Employers

The Government today published the Employment Bill aimed at toughening penalties for rogue employers who pay under the minimum wage.  It also seeks to strengthen the powers of the Employment Agency Standards Inspectorate.

Commenting on the Bill, Tom Hadley, the REC's Director of External Relations said: “We welcome this Bill as it aims to crack down on those employers and agencies that are breaking the rules.  REC members abide by our Code of Professional Practice as well as the law.  It is not right for them to be undercut by agencies that are cutting corners and mistreating workers.”

The Bill aims to introduce new penalties for employers who do not pay the minimum wage.  The Inspectorate who governs the recruitment industry will also be given more investigative powers and access to unlimited fines for those who flout the law.

Commenting on these new powers, Tom Hadley added: “Over recent years, the Employment Agency Standards Inspectorate has re-focused its resources to a risk-based approach.  The plans to increase the number of inspectors as well as the powers of the inspectorate can only be welcome by the recruitment industry.

“Our industry should be applauded for placing 1.3 million people into temporary jobs every week.  For too long the actions of a few rogue agencies have tarnished this reputation.  The REC hopes that the new powers and resource for the inspectorate will result in the rogues being put out of business for good."

The REC polices its Code of Professional Practice through a complaints procedure.  For further information see: http://www.rec.uk.com/about-recruitment/standards/Complaints-Disciplinary-Procedure

Employer Brands

jobs.co.uk research says that 86% of job hunters rate an employers brand as important in considering whether to apply for a job.

Christmas Scrooges

More than one in three scrooge bosses in the UK refuse to pay for Christmas parties and over half think they are a chore. The Chartered Management Institutes Christmas outlook survey said many bosses refuse to pay towards christmas celebrations even though 66% hold end of Year parties.

Employers in the West Midlands are the least generous with only 48% funding celebrations.