New research has found that as few as one in five companies are aware that providing information on benefits to new starters is a legal requirement.
The Association of British Insurers conducted the research and found that, although 60 per cent of SMEs say offering health and wellbeing benefits to staff boosts productivity at work, few are aware of their legal rights to employees to communicate any benefits to workers on day one of their jobs.
The right to a written statement was introduced into law as a “day one” right from 6 April 2020. Workers are entitled to receive a written statement before or on their start date with information on rate of pay, holiday entitlement and also any other benefits, including non-contractual benefits.
Although the ABI says that it’s not a legal necessity to provide information on benefits relating to health and wellbeing, they say this would still have a positive impact on workers from day one.
Charlie Campbell, ABI Manager, Health and Protection, said: "Keeping up to speed with new legal requirements can be difficult, especially during a pandemic. But Day One Statements are not just a legal requirement – they are an opportunity to boost wellbeing and productivity at a time when employee health has never been more important to ensuring a healthy and productive workforce."
Employers should also be checking policies are up to date with the correct information. As well as providing 'Day One Statements' to new starters, employers can issue these statements to staff every year to help them stay engaged.
Three in five (60 per cent) SMEs acknowledge that providing health and wellbeing benefits has a high impact on supporting the productivity of their company. This increases to 69 per cent for medium size businesses, while 22 per cent of SMEs rated having health and wellbeing benefits as being critical for ensuring high productivity, according to ABI’s research.
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