Money’s too tight to mention? That's not a pay award!
Any opportunity to go back to the early 90’s and reference a fantastic Simply Red tune, is simply too good to miss. So, please forgive my burst of nostalgia.
As an employment lawyer I am often asked to advise employees about terms of settlement or engage in negotiations with their employer with a view to securing a favourable settlement / termination package for them.
A report today confirmed that pay awards offered by UK employers have dropped to the lowest percentage in almost two years.
Findings from Incomes Data Research revealed the median pay deal agreed by organisations fell to 4% in the three months to July, down 0.8 percentage points from the three months to June, and the lowest since August 2022. The latest figures do not include settlements that were agreed in April, which is generally the most popular time for securing new deals. During this month, 16% of awards were for 9% or more, in part because of a 9.8% increase in the minimum wage.
The Bank of England is expected to keep interest rates at 5% and it is anticipated that private sector wages will drop to 5% later in 2024 and to 3% late next year and statistics provided by the Office of National Statistics indicated that UK wage growth continued to slow dropping to 5.1% in July, its lowest level in more than two years.
This makes disappointing but not entirely surprising reading. Personal finances for many are squeezed because of the increased cost of living which we have experienced over the last couple of years.
Businesses have also experienced increased over heads and consequently I have seen that businesses are drawing their purse strings a lot tighter the perhaps they had previously. However, that is not to say that deals cannot be had. It is more important than ever that businesses are commercially astute and recognise the benefits to be gained, even if this is from a purely commercial standpoint, by reaching an amicable settlement.
However, it does mean that to secure the most beneficial settlement, employees need to seek advice from a suitably qualified and experienced lawyer. Someone who not only can advise on all aspects of employment law but moreover, is a skilled negotiator.
At Lawson West we have a team of employment lawyers with a wealth of experience who can advise you about settlements and negotiate the most beneficial favourable settlement for you, even in a challenging economy.
Kate Lea, Head of Employment Team
Lawson West Solicitors, Leicester
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