Employment law changes 2023

As a new tax year is on the horizon, as an employer it is essential you are aware and comply with the latest employment law updates.

These changes are part of the ongoing efforts to protect workers’ rights and ensure that businesses operate fairly and responsibly. As an employer, it is crucial to understand these changes and how they will affect you.

1st April 2023: Comply with National Minimum Wage increases

The rates for the National Minimum Wage will increase on 1st April 2023. The hourly rate of the minimum wage will increase from:

• £9.50 to £10.42 for workers ages 23 and over (the national living wage)
• £9.18 to £10.18 for workers ages 21 or 22
• £6.83 to £7.49 for workers ages 18 to 20
• £4.81 to £5.28 for workers aged under 18 who are no longer of compulsory school age
• £4.81 to £5.28 for apprentices under 19, or over 19 and in the first year of an apprenticeship

All employers need to check their current pay rates against the forthcoming minimum wage rates and ensure that where necessary, rates are increased for the first pay reference period beginning on or after 1st April 2023.

2nd April 2023: Increase statutory family – related pay and sick pay

The rate of statutory maternity, adoption, paternity, shared parental and parental bereavement pay will increase to £172.48, up from £156.66. The increase normally takes effect on the first Sunday in April, which in 2023 is 2nd April.

The rate for statutory sick pay (SSP) will also rise on 6th April 2023, with the new rate £109.40, up from £99.35.

Any employees on maternity, paternity, adoption shared parental, parental bereavement leave and those on sick leave, are entitled to the new rates from 2nd April 2023.

6th April 2023: Update your statutory redundancy pay calculations

New limits on employment statutory redundancy pay will come into form on 6th April 2023.

Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employees weekly pay, length of service and age.  The currently weekly pay is subject to a maximum amount of £571, but this is currently under review, and will be confirmed soon in the Employment Rights Order 2023.

8th May 2023: Manage bank holiday entitlement for the King’s coronation

The Government announced an additional bank holiday on the 8th May 2023 to celebrate the King’s coronation.

This means that there will be three bank holidays in May.

Employers need to look at how they will approach the additional bank holiday.  This will be determined to some extent by the wording in employees contracts of employment.  Where the contract entitles employees to take all bank and public holidays, the employer will be required to grant the extra day as leave.  Employers will need to plan well in advance for potential staffing issues, as having an additional bank holiday may see a rise in requests for annual leave around this time.

Other changes on the horizon

The Government has previously announced a number of other employment law developments, without setting out a timetable for their introduction.

The following proposals are being taken forward through the Private Members Bills with Government backing:

• Changes to the right to request flexible working procedure
• The introduction of carer’s leave
• The introduction of neonatal care leave and pay
• Extended redundancy protections during pregnancy and maternity leave
• The introduction of liability for third-party harassment, and
• New rules to ensure that tips are passed to workers in full

I will keep you posted of any further employment law updates throughout 2023.

If you need any help with any of the above or any other employment related issues, book a meeting with me. Click the button below to find out more about our HR service.