7th September 2023

HR Roundup – August 2023

This HR roundup for August features discussion around a study from the National Bureau of Economic Research in India which raises questions about the productivity of remote work, as well as exploring the updates to ACAS guidelines relating to sickness absence and what it means for healthcare businesses. We also look into the correct procedures for handling redundancies following the collapse of a major employer in the UK.

Is ‘Working from Home’ less productive?

A study published by the National Bureau of Economic Research (NBER) found that in India, employees working from home were 18% less productive than those working in the office. As a result, this sparked debate amongst the professional community. Whilst some felt that it was proof that working from home made workers less productive, others believed that there was more nuance to the debate than what the study allowed for.

Productivity is a very important aspect of an employee’s contribution to their company or organisation, and it ensures that they are providing effective work in return for their salaries. Therefore, it is understandable that employers are keen to maximise their employees’ productivity levels and ensure they are getting the most out of their workforce.

However, it is also important to ensure that employees feel trusted, valued, and respected in the pursuit of higher productivity. This balance between driving productivity and fostering a positive work environment is crucial for maintaining good employee well-being. This includes organisations being more open to flexible working options, especially with The Employment Relations (Flexible Working) Act 2023 reaching Royal Assent this year. This could include a hybrid approach to work, as opposed to purely working from home, to give a balanced option to employees.

Sickness Absence: a change in ACAS guidelines

In August, ACAS updated their guidance on sickness absences in the workplace. One major change is the new definition of sickness absence, which is now defined as “when an employee is unable to work due to illness, injury, or other medical reason”.  Other information that has been updated includes the addition of two new guidance sections which are as follows:

Key changes in this guidance primarily relate to the distinction of days, instances, and reasons for sickness absence, as well as ensuring that sickness absences relating to disability is appropriately documented as to avoid any potential discrimination in the future arising from these absences.

The updated guidance for absence trigger points mainly aim to encourage employers using them to communicate them clearly to their employees. It also outlines the importance of making sure these are measured and consistent across the organisation, and keeping in mind the requirements of reasonable adjustments for certain employees with protected characteristics, such as disability.

Handling redundancies

Wilko’s announced it was entering administration in August, causing 400 stores and around 12,000 jobs to be at risk. As a result, there is the risk that redundancies will occur on a mass scale, even if a buyout is to occur. In fact, 14 stores have already been confirmed to be closing down, which is likely to end in a loss of employment for those staff members.

Redundancies can happen in any industry, and healthcare is no different. So, what is the correct process to handle redundancies, especially those of several staff members? Firstly, employers need to be aware of the legalities surrounding making employees redundant rather than just dismissing them, as it needs to fall under one of the following cases:

  • Terminating or planning to terminate the operation of the organisation that the employee was engaged for (business discontinuation).
  • Halting or planning to halt operations of the organisation in the location where the employee was stationed (worksite shutdown).
  • Experiencing a decreased need for employees to perform specific tasks, either in terms of type of work or the location of employment (reduced workforce demand)

 In all cases, employers must prove that a fair procedure of selection processes has been followed, even if only one employee and their position is affected.

There are a lot of considerations when undertaking a redundancy process, and it is vital to ensure that all procedures are fair and do not infringe on the rights of your staff concerning their employment.