A new study shows that employers are preparing for the new legislation on employment rights.
The Incomes Data research (IDR), which is a part of the Employment Rights Bill, has revealed that many businesses are already improving their offerings in areas like sick pay and entitlements to paternity leave and parental leave.
In a poll conducted by an independent research organization, 168 employers were asked about their pay intentions for the year 2025. The results showed that many of them are planning to take action in the next year if they have not already done so.
In 2024, one third of employers plan to increase paternity leave or pay. Just over one fourth intend to do so.
IDR’s Maternity, Paternity and Parental Leave and Pay Report released earlier this summer found that over three-fifths (62%) organisations offering enhanced paternity policies pay staff for two weeks at full pay, and an additional 12% pay staff for around four weeks. Only 14% of organisations offer enhanced parental leave.
In addition, more than one-third (36%) employers have recently increased or are planning to increase their maternity leave pay. The median wage for maternity leave in the workplace is $19.5 weeks.
According to the Employment Rights Bill proposals, the current three “waiting” days under the statutory sickness pay scheme will no longer be in effect and the provision will also be extended to individuals with lower salaries. IDR’s survey indicated that some organisations had recently changed their policies or plan to do so in the next year.
In its Sick pay report published in the fall, it showed that occupational sick pay is typically around 6.5 full weeks of pay for people in their first year after probation. This increases to 26 full weeks for those who have five years’ service.
Katherine Heffernan is a senior researcher with IDR. She highlighted the wide variation in pay between industries. She stated: “Those in the private sector are the worst off, receiving only 12 weeks of occupational sick pay at the end of five years. This compares to 39 weeks for those in the public sector. 26 weeks is the average in manufacturing, and 19.5 weeks in not-for profit.
Pensions and holiday entitlements were also found to be among the other benefits that employers want to improve.
According to IDR Benefits Handbook’s Benefits Guide, employers contribute an average of 6.7% towards defined contribution pension plans – which is more than twice the current minimum percentage of 3%. Non-managerial employees receive approximately 32.2 days of vacation, including eight bank holidays. Managers receive 33.5 days of holiday, including eight bank holidays.
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