advice. They may also inform employees about debt charities, including Citizens Advice and Stepchange – this may be particularly relevant where those who are using the scheme frequently are identified • Periodic notifications could be provided to employees where transaction charges are building • Scheme providers could develop systems that monitor the pattern of usage of employees, and where the usage is substantial, alerts could be triggered providing guidance and directing employees to organisations providing free debt advice
The FCA will continue to monitor the ESAS market, and has increased contact with firms who offer alternatives to high cost credit.
CIPP comment
Do you have any questions, comments, or concerns surrounding Employer Salary Advance Schemes? The CIPP’s Policy and Research team would really appreciate any feedback on the topic, so please get in touch and email Policy@cipp.org.uk.
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33% of companies intending to make redundancies 17 August 2020
In the Labour Outlook Market survey, published by the Chartered Institute of Personnel and Development (CIPD), in partnership with the Adecco Group, it has been confirmed that one in three employers are unfortunately planning to make redundancies by the end of September 2020. 2,000 organisations took part in the survey, and it appears that private sector firms have been affected more dramatically, with 38% confirming they will cut jobs, as opposed to 16% in the public sector. The number of overall redundancies has seen a jump of 11% since the last quarter.
On a positive note, hiring intentions are gradually starting to rise, but are at significantly lower levels than those observed in previous years.
The survey has witnessed the lowest scores since it started being conducted using current methods, in terms of the net employment figure. The net employment figure relates to the proportion of employers intending to increase or decrease staffing levels. It has dropped from -4 to -8 but has remained high in sectors such as healthcare and public administration. The lowest levels were observed in hospitality, transport and storage, and retail. The survey also highlights the fact that many companies are set to be stringent in terms of pay increases over the course of the next 12 months. Pay increase expectations were set at 1% overall – 0.8% in the private sector, and 1.7% in the public sector. The report also shows that 40% of private sector firms are planning to halt pay increases for the next 12 months.
The statistics may come as a surprise to some but are indicative of the economic turbulence caused by the outbreak of coronavirus.
CIPP comment
With so many companies intending on making redundancies, it is important to ensure that they get the process right, and that they pay employees that they are making redundant correctly. The CIPP has a redundancy factsheet, available to members.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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