The rise of equality and diversity
A recent survey published by the European Union suggests that, for many companies, legal compliance is the crucial driver for adopting equality and diversity policies and practices. But for some, a proactive desire to pursue equality and diversity is motivated by a desire to become ‘best in class’. These businesses see a strong business case for equality and diversity.
The UK has an ageing population, resulting from declines in the mortality rate and in the past fertility rates. As fewer young people enter the labour market, many businesses face the prospect of labour shortages within their traditional recruitment pools. At the same time, the greater participation of women, the elderly, ethnic minorities and people with disabilities in the workplace present growing sources of labour. Upon this backdrop, it is clear that to avoid labour shortages, businesses must embrace all recruitment pools - and at the same time create working environments that value inclusion and diversity.
Practical need aside, a business with a reputation for creating a culture of inclusion can more easily attract and retain talent, thus gaining a competitive advantage. In a 2004 Fortune magazine survey of MBA students, IBM was rated as a top five employer, in part due to its focus on creating an inclusive workplace. Top talent recognises the importance of an inclusive and diverse workforce. If businesses hope to attract talented people, they have to recognise this too.
Whichever way you look at it - from a legal, practical or competitive perspective - a business’s focus on equality and diversity in the workplace will, more than ever, determine its success.
More info - Prevent discrimination and value diversity
New National Minimum Wage Rates
Revised national minimum wage rates come into force on 1 October 2007.
For pay reference periods beginning on or after 1 October 2007, employers must pay eligible workers the following:
- £5.52 an hour to adult workers aged 22 and above
- £4.60 an hour to workers aged 18-21 - the development rate
- £3.40 an hour to workers aged below 18 who are no longer of compulsory school age
- £4.30 a day as the daily accommodation offset.
More info - Understanding National Minimum Wage Law
What is the Pay Reference Period?
The pay reference period is the basis of calculating whether the national minimum wage is being paid to an employee.
The pay reference period is usually the interval at which an employee is paid, i.e. daily, weekly or monthly. For the purpose of calculating the national minimum wage, a pay reference period can be no longer than one month.
Pay allocated to a pay reference period includes:
- pay received during that period; and
- pay earned in that period, which is not received until the next period. This may include overtime, bonus or commission payments earned but not paid until the next period. If payments are delayed by more than one pay reference period, they cannot be referred back to the period it was earned, so should be counted in the period it is paid.
Employers do not have to pay the minimum wage for each hour worked - employees must be paid the minimum wage on average for the time worked in the pay reference period.
More Info - The Pay Reference Period
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