Ikea has cut sick pay for unvaccinated staff who need to self-isolate because of Covid exposure and in some cases for workers who test positive.
The retail giant acknowledged it was an "emotive topic" but said its policy had to evolve with changing circumstances.
From this week, sick pay cuts will be implemented at Wessex Water and in the US several major companies have started penalising unjabbed workers.
It comes as firms struggle with mass staff absences and rising costs.
At Ikea unvaccinated workers, who do not have mitigating circumstances, who test positive will be paid in line with company sick pay.
Unvaccinated workers, without mitigating circumstances and required to isolate owing to being identified as a close contact, could now receive as little as £96.35 a week - the Statutory Sick Pay (SSP) minimum.
Self-isolation guidance for people who have been jabbed was relaxed last month. However, there was no change to the guidance for unvaccinated people who come into contact with positive cases, and who must still self-isolate for 10 full days after their date of exposure to the virus.
Average wages at Ikea are between about £400 and £450, depending on location and, as is the case at many companies, staff get enhanced sick pay. The move was first reported by the Mail on Sunday.
Ikea, which employs about 10,000 people in the UK, said in a statement: "Fully vaccinated co-workers or those that are unvaccinated owing to mitigating circumstances which, for example, could include pregnancy or other medical grounds, will receive full pay.
"Unvaccinated co-workers without mitigating circumstances that test positive with Covid will be paid full company sick pay in line with our company absence policy.
"Unvaccinated co-workers without mitigating circumstances who have been identified as close contacts of a positive case will be paid Statutory Sick Pay."
In England, people who are vaccinated with at least two doses need not self-isolate if they have been in close contact with someone infected with Covid. Unvaccinated people contacted through the government's test-and-trace system must still isolate by law.
Many companies complained of labour shortages throughout 2021, and now are seeing mass absences due to the more infectious Omicron Covid strain.
https://www.bbc.com/news/business-59930206
