In January 2021, furniture retailer Ikea cut the sick pay of their unvaccinated staff who are forced to self-isolate due to Covid-19 exposure.
Ikea will be paying unvaccinated workers statutory sick pay, which could be as little as £96.35 a week (The Statutory Sick Pay minimum). This is a massive difference from the average £400 a week wage (before tax) for shop floor workers that the company normally pays.
Can employers legally cut sick pay for the unvaccinated? – Whether or not employers can cut sick pay easily will depend on the wording of the workers’ contracts.
It may be the case that the contracts do allow it, by saying any contractual sick pay, over the statutory amount, is discretionary.
However, many contracts simply state a worker will be paid contractual sick pay for a certain time. If this is the case and the employer wants to cut this, then they will have to consult with the workers about the change.
Ultimately, though, the employer will be able to cut sick pay if they follow a proper procedure.
Should employers implement similar measures to Ikea? Other employers may be looking to do the same as Ikea, likely for financial reasons.
The first thing to do is check the contractual wording and, in any event, ensure a proper procedure is undertaken.
In the end it will be a balance between the financial savings on the one hand and the potential damage to the morale of, and relations with, the workers on the other.
If you’re an employer looking for further advice about dealing with unvaccinated workers and self-isolation, feel free to speak to a member of our team.
We offer free 30-minute initial consultations, in which we can discuss your circumstances.
01202 499255 | pburton@frettens.co.uk
www.frettens.co.uk
This article is featured in the February issue of the Dorset Business Focus magazine. Read on the online version here.