Legal and Political Factors That Affect Tescos.

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Managing sickness absence

‘’A new service to help employers and employees manage long-term sickness absence has been launched by the DWP. The Health and Work Service is a free occupational health advice initiative that will help employees who have been, or are expected to be, absent from work due to illness for over four weeks return to work more quickly. Both GPs and employers will be able to refer employees to the Service, which will carry out an occupational health assessment and develop a plan including a timetable for a return to work. The DWP claims the Service, which is expected to be operational by April 2015, could cut the amount of sickness absence by 20% to 40%, saving employers a total of £70 million’’

This law is when workers who have an absence from work for being sick or ill. If their sickness last after four weeks of absence then they will receive a service of offering them free occupational health assistance for employees, employers and GPs. People are going to be off sick from time to time. But absence because of sickness, or another unexpected reason, can put your business in a tricky situation

This employment law I think is a negative threat to Tesco because it puts the business down on the way they are performing for example the employee can lie about their absence for being off several weeks and still get paid for his excuse of being ill or sick. This can put Tesco in a tricky situation because the employee can be absence for a long time,

One strategy I could suggest for Tesco to avoid employees going away for such long time is to put a method in place which will allow them to double check the leave of their employees to make thy haven’t been lied to. One strategy I could suggest for Tesco to carry out these goals is to have a few staffs that will be in charge to check and double check the proof employees at Tesco would provide after coming back from their leave. This could be done by checking the dates and time on the proof provided, call to the hospital or wherever the proof comes from.

New statutory pay rates

The law says you can get £87.45 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks. This is a negative threat to Tesco because they still have to pay the employee even if they are not working, this is only if the worker has been sick for 4 or more days in a row then he can get paid by the business.

The law says statutory maternity, paternity, adoption and shared parental leave will increase to 139.56 per week. This law for Tesco is a negative threat, this is because Tesco have to spend a lot more on workers who have new a new baby this is because the worker will have to stay home and look after the child and won’t work. This also means Tesco will be losing more money because of paying statutory pay rates. Employees will be happier on their return; this is because Tesco can give them a warm welcome back.

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One strategy I can suggest for Tesco to save them from spending a lot of money on employees who don’t work and reduce their budget on thing that will not bring them anything back is concentrate on maximising their sales and benefits so that they don’t feel the pinch from all the money will spend from non-working employees.  The strategy they could use to carry this strategy would be to charge more money on the products people buy the most for example slightly raising the price of their best selling products or services.


Membership of EU

The European ...

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