At a glance: reward and benefits headlines this week 27 March – 2 April 2020
The headlines you might have missed between 27 March – 2 April 2020.
Chancellor to pay 80% of self-employed wages
HR Review: Chancellor of the Exchequer, Rishi Sunak announced yesterday (26/03/20) a support package for the self-employed, where contractors and freelancers will be able to claim 80 per cent of their earnings, a maximum of £2,500 a month from HM Revenue & Customs (HMRC). Read story
Furlough scheme explained to employers
HR Review: Chancellor Rishi Sunak has put another COVID-19 measure in place known as the Furlough scheme, where the Government will pay 80 per cent of employees wages who have been furloughed. Read story
Workers can now defer holiday over to the next two years
HR Review: Employees who have not taken the whole amount of their statutory annual leave entitlement this year will now be able to carry it over for the next two years due to COVID-19 allowing businesses the flexibility to deal with the pressures brought on by the virus more effectively. Read story
Covid-19 excluded from critical illness claims – CA group risk Covid round table
Corporate Adviser: The insurance industry needs to communicate clearly that a Covid-19 diagnosis won’t result in a claim under a group — or individual — critical illness policy, said speakers at an emergency Corporate Adviser virtual round table on group risks’ response to the coronavirus epidemic yesterday. Read story
TPR green lights suspension of deficit reductions and use of pre-crash market assumptions
Corporate Adviser: Trustees can suspend deficit reductions, ignore current markets in their valuations and stop cash equivalent transfers under a raft of emergency measures published by The Pensions Regulator (TPR) today. Read story
TPR extends late payment reporting deadlines
Professional Pensions: The Pensions Regulator (TPR) has temporarily relaxed the timeframe for schemes which need to report late payments from employers for workplace pension schemes. Read story
UK businesses come together to offer perks to front-line NHS employees
Employee Benefits: Businesses across the UK have come together to offer discounts and perks to NHS staff, as a show of solidarity and support for those on the front line in the battle against Covid-19 (Coronavirus). Read story
Only 30% of the UK workforce experienced working from home in 2019
Employee Benefits: Only 30% of UK employees ever worked from home during 2019, according to the latest research by the Office of National Statistics (ONS). Read story
Hy-Vee rewards front-line store employees with 10% bonus
Employee Benefits: US-based supermarket retailer Hy-Vee is giving its front-line store employees a 10% bonus to recognise their hard work during the Covid-19 (Coronavirus) pandemic. Read story
Leeds United players, coaches and management defer pay to support all staff
Employee Benefits: Coaching staff, players and members of senior management at football club Leeds United will defer their pay for the foreseeable future, to ensure that all staff working at the Elland Road stadium and Thorp Arch training ground will still receive pay during the Covid-19 (Coronavirus) outbreak. Read story
CEO cuts his own salary to avoid staff layoffs
HR Grapevine: CEO of the media company BuzzFeed, Jonah Peretti, said in an internal company memo that he would not take a salary until the COVID-19 pandemic blows over. Read story
COVID-19 job retention scheme to cover AE contributions
Pensions Age: The government has confirmed that the coronavirus job retention scheme will include provisions for pension contributions. Read story
How wellbeing can support purpose
Corporate Adviser: Aligning health and wellbeing to purpose can bring benefits into an organisation’s DNA says Sam Barrett. Read story
Government withdraws 10% general levy increase
Professional Pensions: The Department for Work and Pensions (DWP) has cancelled a planned rise to the general levy amid the ongoing Covid-19 outbreak. Read story
TPR deficit contribution guidance welcomed but 'hidden implications' arise
Professional Pensions: The Pensions Regulator (TPR) is “pulling out all the stops” to help struggling employers during the Covid-19 crisis, although latest guidance may put trustees in a “challenging” position, the industry says. Read story
Aldi rewards store and distribution staff with 10% bonus
Employee Benefits: Aldi will pay store and distribution employees a 10% bonus due to their hard work throughout the Covid-19 (Coronavirus) pandemic. Read story
Walkers Shortbread staff to receive full pay during closure
Employee Benefits: Baking organisation Walkers Shortbread Limited has closed all production operations with immediate effect but will still continue to pay staff in full throughout the duration of the closure. Read story
Easyjet to pay staff 80% of wages after suspending all flights
Employee Benefits: British airline Easyjet will pay all of its employees, who are unable to work from home, 80% of their average pay through the Government’s job retention scheme. Read story
Mattioli Woods CEO to forego salary amid pandemic
Cover: Mattioli Woods CEO looks to help mitigate costs and protect the firm’s financial position amid the coronavirus crisis. Read story
3.8m of 5m self-employed workers in the UK covered by scheme
HR Review: Following Chancellor of the Exchequer, Rishi Sunak’s announcement on the (26/03/20) that a support package for the self-employed is to be set up, where contractors and freelancers will be able to claim 80 per cent of their earnings, a maximum of £2,500 a month from HM Revenue & Customs (HMRC), it has been revealed that this will only help 3.8 million of the 5 million self-employed workers in the UK. Read story
PIC completes £250m buy-in with two WPP schemes
Professional Pensions: Multinational communication services giant WPP has completed a £250m buy-in for two of its pension schemes with Pension Insurance Corporation (PIC) as the insurer celebrated a “healthy pipeline” of deals amid the Covid-19 outbreak. Read story
USS to proceed with 31 March valuation despite asset falls
Professional Pensions: Universities Superannuation Scheme (USS) has said it will go ahead with its 31 March valuation despite significant falls in asset values over the past month. Read story
Ombudsman’s Royal Mail decision opens up Pandora’s box
Pensions Expert: The Pensions Ombudsman has upheld a complaint against the Royal Mail Statutory Pension Scheme for refusing to pay a deferred pension, providing a salutary lesson for employers who fail to keep adequate records. Read story
Employers must step up mental health support during coronavirus crisis, CIPD says
People Management: Research shows managers lack confidence in this area, while People Management survey finds staff anxiety about Covid-19 is HR’s biggest challenge. Read story
FC Barcelona players defer pay to support all non-sporting staff
Employee Benefits: The professional team members at FC Barcelona, including the football first team and most of the basketball team, will reduce their pay to support non-sporting staff during the Covid-19 (Coronavirus) pandemic. Read story
King George and Queens Hospitals pay outsourced NHS staff living wage
Employee Benefits: NHS outsourced workers at Kings George and Queens Hospitals in East London will receive the London living wage, effective from April 2020. Read story
Employers should 'think carefully' before cancelling benefits
Cover: Employee benefits intermediary encourages employers not to let benefits lapse due to COVID-19. Read story
AA plans £11m DC scheme ‘enhancement’ alongside DB closure
Pensions Age: AA claims its consultation on changes to its defined benefit (DB) pension scheme has resulted in a planned “enhancement” to the defined contribution (DC) scheme for affected employees. Read story
Remote working will now become the new norm
HR Review: As remote working is being widely used due to the spread of COVID-19, almost two-thirds of employees believe this form of working will become more common once the threat of the virus passes. Read story
Hold off on rash pension decisions, say regulators
Professional Pensions: The UK’s pension regulators have called on pension savers to stay calm as fears over the impact of the coronavirus pandemic on markets and personal finances may lead many to take damaging actions. Read story
Key and home workers struggling with childcare, poll reveals
People Management: Staff face difficulties juggling their roles and family, with People Management’s latest survey finding this is a growing concern for firms. Read story
Verizon increases pay for essential on-site employees
Employee Benefits: Telecommunications organisation Verizon is enhancing pay to ensure that its on-site employees are financially supported during the Covid-19 (Coronavirus) pandemic, effective immediately. Read story
Amey employees to receive full pay during self-isolation
Employee Benefits: Outsourcing organisation Amey will pay all of its employees who are instructed to self-isolate due to the Covid-19 (Coronavirus) pandemic in full. Read story
PIB Group enhances parental leave for 1,300 employees
Employee Benefits: Insurance organisation PIB Group (PIB) has enhanced its paid parental leave benefits to support new parents, effective immediately. Read story
Lack of access to employment benefits is contributing to career burnout for women in the digital sector
Employer News: Zoe Morris, Mason Frank International, explains the benefits employers need to look at if they want to retain female talent. Read story
Regulators publish warning to savers on increased threat of pension scams
Pensions Age: The Financial Conduct Authority (FCA), Money and Pensions Service (Maps) and The Pensions Regulator (TPR) have warned savers against the rising threat of pension scams amid the current coronavirus crisis. Read story
B&CE furloughs 140 staff and changes charging structure
Professional Pensions: B&CE, the provider of The People’s Pension, has furloughed just under a quarter of its members of staff in response to pressures from the Covid-19 crisis. Read story
HMRC pushes back deadline for GMP data cuts
Professional Pensions: HM Revenue and Customs has extended the deadline for the issue of final reconciliation data cuts due to the coronavirus outbreak. Read story
Coronavirus-driven capacity crunch to leave DB members flailing
Professional Pensions: Retirees looking to access additional income from their defined benefit (DB) scheme during the Covid-19 crisis will be victims of a “capacity crunch” as suitable financial advisers flee the market, according to Barnett Waddingham. Read story
One in four employers expect to make redundancies as a result of coronavirus, poll finds
People Management: Experts urge firms to only make permanent layoffs as a ‘last resort’ and warn staff can still bring tribunal claims if companies do not handle these situations properly. Read story
Morrisons wins appeal at Supreme Court over payroll data breach
Employee Benefits: Supermarket retailer Morrisons has won a Supreme Court appeal over whether it is liable for the criminal act of an employee who leaked payroll data of around 100,000 members of staff. Read story
Marks and Spencer rewards front-line employees with 15% bonus
Employee Benefits: British retailer Marks and Spencer will give front-line employees a 15% bonus to reward them for their hard work during the Covid-19 (Coronavirus) pandemic. Read story
Starbucks extends temporary Covid-19 benefits in US
Employee Benefits: American coffee company Starbucks has extended all of its temporary Covid-19 (Coronavirus) employee benefits including catastrophe pay and extra service pay until 3 May 2020. Read story
TPP introduces annual £2.50 charge to 'futureproof' scheme
Pensions Age: The People’s Pension (TPP) will introduce a combination charge structure, which it says will make it “fairer and futureproof” against the impact of the Covid-19 pandemic. Read story
Schemes urged not to overreact as DB deficit rises 100bn in Q1 2020
Pensions Age: The deficit of UK defined benefit (DB) pension schemes has increased by over £100bn since the start of the year, rising to £290bn at the end of March, according to the latest PwC Skyval Index. Read story