Duty of Care for Employers
Employers have a duty of care to employees in relation to Health and Safety. This duty extends to both the employee's physical and mental welfare. With the current cost of living crisis, employers can support their employees during these tough economic times.
How can an employer assist a worker financially as they deal with the rising cost of living?
Employers have no obligation to increase salaries unless there is a contractual obligation to conduct agreed annual salary reviews. Some larger employers have decided to increase salaries to help with the cost of living. Employers may also consider paying a one-off bonus and paying contributions towards energy and broadband costs for employees who work from home. Other employers will look towards non-fiscal ways to support staff. Employees could be encouraged to use the cycle-to-work scheme to help with fuel savings and salary sacrifice savings for the employee.
The Trade Union Congress has asked the government to increase the National Minimum Wage to £15.00 an hour for all age groups. They want to achieve this target by 2030. The Low Pay Commission has recommended that the National Minimum Wage reach a level of two-thirds of average earnings by October 2024.
How can an employer support employee's Mental Well-being?
During a crisis, employers should recognise that an employee's mental health can be affected in a diverse number of ways. Employers should adopt effective communication skills to listen to employee concerns. Employers can prove their duty of care in this area. Where employers have an employee help schemes for counselling they should be used. Employers can function as mentors to help employees learn good financial budgeting skills. The simplest way to do this is to signpost employees to useful websites which have information and tools for budgeting. Where employees have debt issues, they can be directed to organisations giving free advice.
Employers can continue or adopt home and hybrid working as a solution to help employees save costs on fuel and transport. Employers should ensure they have an updated policy to prevent any disputes. Employers should note that for some employees, homeworking may not be attractive due to the cost of heating their homes during the winter months.
This article is for guidance only. Should you have any enquiries about supporting employees with the cost-of-living crisis please call our experienced HR advisors at the Quest advice line on 0116 274 9193.
