Employee Welfare

Managers at Tesco’s need to overcome the conflict between an organisation’s need to change and human nature’s fear and resistance of the unknown. The managers need to develop a successful implementation strategy. The plan should ensure that information is made available on how the change will affect people from the first stages of implementation to the end. Employees should be encouraged to ask questions and, if possible, managers should provide any guarantees that can be given about job security, transfers, retraining, etc.

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Simple language should be used to avoid excluding or misleading people through the use of technical jargon. It is essential that Tesco’s managers do not present the change as necessary because of past bad performance but as something that will contribute to continuing good performance. In implementing any programme of change. The manager’s objective should be to deliver the change as quickly as possible with the least waste of time and money. 3. 6dii Employee Welfare Tesco have a duty to provide its employees with a good and safe working environment and must respect employees’ statutory rights and interests.

In order to be able to fulfil this obligation, Tesco must respond to new government legislation and regulation. If an organisation fails to comply with the law it can face prosecution or financial costs. Therefore it is essential for Tesco to comply with all government legislation regardless whether it is old or new. Some employers and business organisations have argued that recent legislation on working hours and working conditions has reduced their capacity to operate flexibly and made it more difficult to achieve improvements in performance.

Working Time Directive The Working Time Directive was introduced into the UK in October 1998 as a measure designed to protect the health and safety of employees. The directive covers seven areas: Maximum working weekly hours – the average working time for each seven- day period should not exceed 48 hours, however employees have the right to opt out of the regulation. Daily rest – employees are entitled to a rest period of 11 consecutive hours in each 24-hour period. Rest breaks – an employee that has worked six hours is entitled to a 20-minute rest period.

Weekly rest – employees are entitled to an uninterrupted rest period of 24 hours in each seven-day period. Annual leave – an employer has a duty to provide an employee with at least four weeks paid annual leave. Patterns of work – an employer should ensure that employees take regular breaks and that they are not subjected to any monotonous or high-risk tasks. Night work – night workers should not work more than an average of eight hours in any 24-hour period and they should have the option to move to day jobs if they become ill.

The Working Time Directive recognises that working hours are a health and safety issue and provides protection for employees. 3. 6civ Maternity and Paternity Leave The Sex Discrimination Act 1975 and the Employment Rights Act 1996 entitle pregnant employees to maternity leave regardless of their length of service or the number of hours they work. Under 1999 legislation, the maternity leave period has been extended from 14 to 18 weeks. The latest time leave that can be taken is the expected week of the childbirth itself, and the earliest time leave is 11 weeks prior to the expected birth of the baby.

By law, employees must take at least two weeks maternity leave immediately after the birth of the child. Tesco must continue to grant employees their statutory and fringe benefits (such as company car, health insurance, holiday entitlement) during the maternity leave period. Employees must be free to return to work after maternity leave. At present, there is no legal requirement for organisations to grant paid paternity leave to the partners of pregnant women. However, to satisfy employee demand some employers and local councils do grant paid leave. The average paternity leave period is currently ten days. 3. 6cv Minimum wage

The national minimum wage was introduced in April 1999 in order to provide employees with basic protection from exploitation. The minimum wage covers any UK employee who is aged 18 or older. The legislation covers agency workers, home workers, temporary and casual employees, and people on fixed term or freelance contracts as well as all full-time and part-time employees. No exclusions are made on the grounds of region; size of company or type of industrial sector and employees cannot be excluded because of their hours, employment patterns, and length of service or contract status. In April 2000, there were three bands for the minimum wage:

A rate of 3. 60 per hour for those aged 22 and over. A rate of i?? 3. 00 per hour for those aged 18-21 (inclusive). A rate of i?? 3. 20 per hour for those who are 22, and are within the first six months of a new job and taking part in accredited training. Some people are not entitled to the minimum wage. These include: The self-employed. Voluntary workers who are only paid expenses. People younger than 18 years old. People who normally work outside the UK. The armed forces. Prisoners. People on voluntary work experience. People living in their employer’s home. Members of an employee’s family.

The implications of ignoring the minimum wage legislation are severe. Tesco can face a fine of up to i?? 5,000 and criminal prosecution. The minimum wage can distort the market for labour, especially if it is higher than the real market rate for particular jobs. Opponents of the initiative have argued that it may reduce employment opportunities and lead to higher costs, which will be passed on to the consumer in the form of higher prices. Tesco being the UK’s leading retailer it is essential for them that the minimum wage does not increase any further otherwise it could cause the need for making employees redundant.

Therefore in order for Tesco’s to remain the UK’s leading retailer they must maintain a successful and flexible workforce, however escalating wage demands can only hinder the progression of smaller organisations as many other organisations will not have the financial support that Tesco occupy. Therefore as consumers escalating wage demands may end all competition for Tesco’s and allow them to set high prices, thus resulting in greater levels of output and profitability.