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management & education news

GOVERNMENT CONSIDERING FALL IN UK LABOUR

MAKING EMPLOYEE PRODUCTIVITY IS
WORST IN 5 YEARS

REFERENCES MANDATORY

LABOUR PRODUCTIVITY in the UK
contracted in the second quarter
at the fastest pace in five years,
highlighting how a trend that has
persisted since the global financial
crisis has accelerated as a result of
Brexit uncertainty.
Output per hour worked, the
standard measure of productivity,
dropped 0.5 per cent over the three
months to June, compared with the
same quarter last year, the worst
THERE IS CURRENTLY NO STATUTORY OBLIGATION FOR performance since the April-June
AN EMPLOYER TO PROVIDE A REFERENCE period in 2014, according to the ONS.
It follows two quarters of stagnation.
THE GOVERNMENT HAS said it will or other discrimination. Productivity is considered the
consult on the idea that employers “We think there is merit in single most important determinant
should be required to provide, as considering this idea further and will of a country’s standard of living and
a minimum, a basic reference – for consult on this matter in due course,” lack of growth limits a country’s
example, confirming that they worked it stated. ability to become richer.
for that employer and the dates of their It also said the online publication of In the UK, productivity has
employment – for any former employee. employment tribunal decisions should stagnated since the 2008 financial
Personnel Today reports that there is not disadvantage claimants, after MPs crisis and failed to recover as it
currently no statutory obligation for an said that people with particular types typically does following contractions.
employer to provide a reference. With of claim may be negatively affected by Moreover, it has weakened since
the exception of certain regulated sectors, aspects of the tribunal system. the 2016 Brexit referendum and
it is a matter for individual employers The government said it “takes contracted in the past year.
whether to provide a reference. seriously” any suggestion that the Many economists and
In its response to recommendations tribunal system is disadvantaging businesspeople point to the lack of
made by the Women and Equalities certain groups of individuals. business investment as a reason for
Select Committee’s inquiry into the “We will therefore work to better deteriorating productivity. Business
use of non-disclosure agreements understand the nature of the concerns investment has barely expanded
(NDAs) in discrimination cases, the raised and assess whether there are any since the second quarter of 2016 and
government said it could understand which are not being addressed by the contracted 0.4 per cent in the three
why the withholding of a reference various [planned] improvements,” it months to June.
could pose a problem for victims of sex told the committee in its response.

GENDER PAY GAP HITS OLDER WOMEN HARDEST, DATA SHOWS

THE GENDER PAY GAP is at its the analysis, said this meant women Stuart Lewis, founder of Rest Less,
worst when workers reach their 50s, in this age group earned on average 28 said women in their 50s were “taking
according to new analysis of wage data, per cent less than men of the same age. a double hit when it comes to their
prompting calls for employers to take The wage gap was narrowest salaries, caused by both gender and
stronger action to tackle pay disparity. between workers aged 22-29, at just age discrimination”.
People Management reports that 12.9 per cent, reaching 25 per cent “With such a tight labour market,
mean annual salary for women aged for those aged 40-49 – also the age and the wealth of talent and skills on
50-59 was £32,052 in the year to April that mean salaries for both men and offer among women in their 50s and
2018, compared with £44,561 for their women peak. However, women’s 60s, it’s surprising not to see more
male counterparts. This is according to average wages saw a larger decrease employers actively seeking out and
the ONS’s annual survey of hours and than men when they reached the engaging with this audience to help fill
earnings. Rest Less, which carried out 50-59 age bracket. a very real skills gap,” Lewis added.

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