This month we bring you a range of employment law updates. A CIPD survey revealed that a quarter of UK employees faced workplace conflict in the past year, with women, ethnic minorities, and disabled workers most affected. PwC reported a slight decrease in the UK's gender pay gap, though significant disparities remain, particularly in the Financial Services sector. NHS Employers updated guidance on settlement agreements and confidentiality clauses and the Institute of Directors opened a consultation on a new voluntary Code of Conduct for Directors to enhance decision-making and public trust.
- CIPD Study: Quarter of UK employees have experienced workplace conflict in the past year
- Gender Pay Gap: PwC publishes data on mandatory UK gender pay gap reporting 2023–2024
- Contracts: NHS Employers updates guidance on use of settlement agreements and confidentiality clauses
- Corporate Governance:Institute of Directors publishes consultation on Code of Conduct for Directors
CIPD study: Quarter of UK employees have experienced workplace conflict in the past year
On 11 June 2024, website People Management published an article revealing that a recent survey by the CIPD has highlighted that women, ethnic minorities and disabled workers are the most likely to report encountering conflict, as commentators call for employers to recognise the importance of a positive culture.
The CIPD Good Work Index 2024, which surveyed more than 5,000 UK workers, discovered that:
- a quarter (25 per cent) of UK employees – an estimated eight million people – have encountered workplace conflict in the last year;
- the most prevalent types of conflict were: being humiliated or undermined at work (48 per cent), being shouted at or having a heated argument (35 per cent), verbal abuse or insult (34 per cent) and discriminatory behaviour (20 per cent);
- just over half (54 per cent) of those who reported conflict said they were satisfied with their jobs, compared to 77 per cent of those who did not experience conflict;
- employees who experienced conflict were found twice as likely to say they would leave their job in the following year (33 per cent, compared to 16 per cent of those who had not reported conflict).
The report also noted that:
- people who experience conflict in the workplace have lower job satisfaction and are more likely to experience ill mental and physical health;
- less than a third (28 per cent) of those who experienced workplace conflict in the past 12 months reported that their work had a good impact on their mental health, compared to 43 per cent of those who did not experience conflict;
- a quarter (25 per cent) of those who reported experiencing conflict said work had a positive impact on their physical health, compared to 32 per cent of those who did not face conflict;
- two fifths (42 per cent) of those who experienced workplace conflict in the previous 12 months said they 'always' or 'frequently' felt exhausted, and 37 per cent said they always or often felt under pressure.
The CIPD survey found that employees' most common response to conflict was to simply 'let it go' (47 per cent), followed by discussing with a manager or HR (29 per cent), informal discussions, either with someone outside work such as family or friends (21 per cent) or with the other person involved (17 per cent). Only a few (1 per cent) took the case to an employment tribunal. Two thirds (66 per cent) of people said their conflict was either fully or partially resolved. Just 36 per cent said their workplace conflict had been fully resolved.
The report said: "It would, of course, be unrealistic to suggest that every source of conflict can be resolved to the full satisfaction of both parties. But more than a third did say they had no resolution at all."
It continued: "Those who reported conflict were significantly less likely to think senior managers and directors had the right vision, or that they were able, or could be trusted, to act with integrity."
For more commentary on the findings and advice and approaches to management which can be helpful, please read the full article.
Gender Pay Gap: PwC publishes data on mandatory UK gender pay gap reporting 2023–2024
PwC has published data relating to the mandatory pay gap of organisations reporting for the year 2023–2024. The data shows a decrease in the mean gender pay gap of 0.4% over the past year, down from 12.2% to 11.8%, with an overall reduction of 1.6% in the mean pay gap since 2017 when reporting started. This time around 10,408 companies disclosed their gender pay gap. Almost 60% of organisations reported decreases, though the majority of these reductions were below 2%.
The Financial Services sector continues to report the biggest gender pay gaps, which is reflective of the ongoing issues with gender equality within the sector.
According to PwC, these incremental reductions in the gender pay gap are indicative that 'pay parity remains out of reach', but that there are things that businesses can do in order to drive change.
Contracts: NHS Employers updates guidance on use of settlement agreements and confidentiality clauses
NHS Employers has updated its guidance for employers on the use of settlement agreements and confidentiality clauses when resolving a workplace dispute or ending an employment contract. The guidance includes the latest information on legislative requirements, good practice examples on the freedom to speak up, guidance on Mutually Agreed Resignation Schemes, information on board members and the NHS England Fit and Proper Person Test Framework, and links to further resources.
Corporate Governance: Institute of Directors publishes consultation on Code of Conduct for Directors
The Institute of Directors (also known as the IoD) has published a consultation document on a Code of Conduct for Directors. The Institute of Directors has said that the Code will be a practical tool to help directors make better decisions and provides organisational leaders with a behavioural framework to help them build and maintain public trust in their business activities. The Institute of Directors emphasises that the Code is a voluntary commitment and is not intended to create a new burden of compliance.
The Institute of Directors requests the business community and general public to provide their views on the Code by 16 August 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.