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Ikea Cuts Sick Pay for Unvaccinated Staff Ordered to Isolate

Ikea Reduces Covid Sick Pay for Unvaccinated British Workers

Ikea imposed a financial penalty on unvaccinated U.K. employees who miss work if they are ordered to self-isolate after coming into contact with someone with Covid-19. 

If these workers become ill with the virus themselves, however, they will still receive sick pay as normal, Ikea said in a statement to Bloomberg. 

The changes, which came into effect in September, mean that unvaccinated staff only receive statutory sick pay of 96.35 pounds ($131) a week during the 10-day isolation period -- which is much lower than average weekly wages before taxes. 

The furniture retailer, which has 10,000 workers in the U.K., is among a growing list of other major retailers such as Walmart Inc. in the U.S. and British grocer Wm Morrison Supermarkets Ltd. putting pressure on staff who refuse to get vaccinated without a valid reason. 

The punitive policies mark a change in approach. Until recently, most businesses focused on encouraging staff, such as offering paid time-off for employees to get a Covid shot. 

Ikea said its sick pay policy was adapting to changing government requirements and the large vaccine roll-out across the U.K. “We know this is a highly emotive topic and we appreciate there are many unique circumstances,” the spokesperson said. 

The rapid spread of the omicron variant is prodding retailers to react as a rise in absenteeism adds to the woes of a sector already battling tangled supply chains, rising freight costs and raw material shortages. 

European leaders have also been dialing up pressure on vaccine holdouts. French President Emmanuel Macron last week said his government’s strategy was to “p--- off” those who have refused shots, while British Prime Minister Boris Johnson accused anti-vaxxers of spreading “nonsense.” 

People in England who are unvaccinated and identified by the government’s test-and-trace system as exposed to the virus must self-isolate. People who have had at least two vaccine doses are exempt.

The Ikea policy allows managers to consider mitigating circumstances for refusing the vaccine such as pregnancy or other medical conditions, according to the company.

©2022 Bloomberg L.P.