News

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21 Sep 2009

Half of UK businesses at "high risk" from swine flu – DLA Piper research

Press Release

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• Survey reveals 50 per cent of companies regard operations being affected by swine flu as high or very high risk
  
• 80 per cent of companies reviewing continuity planning in light of threat
  
• However, more than half of companies have not communicated business continuity plan to employees, customers or suppliers
  
• More than three quarters of companies have no plans to account for swine flu in employee policies and T&Cs
  
• Significant holes exist in continuity planning in the overwhelming majority of UK businesses

More than half of UK companies (50.5 per cent) regard themselves as at "high risk" or "very high risk" of having their operations affected by the rate of the swine flu outbreak. DLA Piper's findings, in a survey of 400 UK companies, come after the Business Advisory Network for Flu warned that 30 per cent of the UK's population may be affected by swine flu by the end of September, whilst one in eight employees may be forced to take time off work sick.

The research underlines that UK businesses are preparing for a large scale impact in terms of absentees and potential disruption with suppliers and partners, with 82.0 per cent reviewing their business continuity plans in light of Government advice. However, more than half of the organisations polled (50.8%) have not communicated their business continuity plan to either employees, customers or suppliers , which potentially will undermine the effectiveness of these measures.

DLA Piper believes that the report highlights holes in business continuity planning as many companies appear to only have begun to consider their strategies with the outbreak of swine flu. Whilst some businesses are recognising the threat of swine flu to their operations and are making provisions to address staff members being ill, more than three quarters of companies are not making any related changes to their terms and conditions (T&Cs) and employee policies. This could leave many UK businesses in difficulty in the near term due to the increasing possibility of having to manage employees during an outbreak of swine flu. For instance, there is little evidence that businesses have considered what they might do if schools are closed or people are forced to stay off work despite not being ill themselves.

Tim Marshall, UK Head of Employment Law at DLA Piper, said: "It is important to note that some of the measures which could be implemented in response to pandemic flu have potential employment law implications, which may not be immediately obvious. For example, where employers require employees with suspected swine flu to remain at home, how does this impact on the operation of absence management procedures? There would be potential for unfairness if employees were disciplined as a result of swine flu related absence if it is not the employee's choice whether or not to come to work, particularly if the swine flu diagnosis is not confirmed."

The survey demonstrated that, in general, it is employers with 250 or more employees who are most concerned about the possible impact of swine flu on their operations. Six in ten (55.8 per cent) of these respondents considered that there was a "high or very high risk" of swine flu affecting the operations of their organisation, compared with four in ten (40.6 per cent) of respondents with fewer than 250 employees (SMEs). Moreover, public sector respondents also demonstrated a higher level of concern about the possible impact of swine flu than those in the private sector. More than one in five (20.5 per cent) of public sector respondents considered that there was a "very high risk" of swine flu affecting the operations of their organisation, compared with less than one in ten (7.4 per cent ) of private sector respondents.

Marshall continued: "This survey has shown an encouragingly high level of awareness of the risks around swine flu, particularly in large businesses and the public sector. UK businesses clearly perceive themselves as being at risk in terms of their operations being adversely affected and it is imperative that they implement the appropriate business continuity procedures. As we enter the winter season we can expect an increase in the incidence of swine flu, and so all businesses must ensure that they are fully prepared, or risk inadvertently stumbling into a legal minefield."