Are you ready for the 2023 Employment Law Changes?
There are several changes to employment legislation in the pipeline for the coming year. We’ve collated some of the key changes to help keep you in the loop with what to expect, and when, in 2023.
Changes to Pay
Before the new tax year even gets started, the National Minimum Wage and the National Living Wage are being increased. Following 1st April, the lowest hourly rates that an employer can award their staff are as follows:
Apprentices and 16-17-year-olds must receive at least £5.28
18-20-year-olds have a new rate of £7.49
21-22-year-olds should receive no less than £10.18 per hour
The new National Living Wage, payable as a minimum to employees aged 23 and above, is £10.42.
More statutory rate changes coming into force on 2nd April apply to Family Friendly payments (Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay and Parental Bereavement Pay), all of which will increase to £172.48 per week. This equates to a rise of just over 10%, which is also echoed in statutory sick pay, which rises to £109.40 on 6th April.
Other developments which are thought to be on their way include completely new sets of rights in the areas of parents' protection from redundancy, Neonatal Leave and Pay, and Carer's Leave.
Right to Work Flexibly
We don't know when, but a commitment has already been made by the government to strengthen the employee position in requesting flexible working. Once the new conditions are in force, employees will be able to put as many as two requests for flexible working in per year and will be able to do so from the very first day of their employment. Furthermore, an employer intending to deny a request must have consulted with the employee before doing so.
Tips and Gratuities
At some point this year, we also expect workers in receipt of tips and gratuities to have a 100% claim on the money received. Employers will need to honour this and should therefore begin keeping thorough records of all tips received and how they are distributed.
New Legislation to Keep an Eye on
This is certainly not the end of this year's surprises! Following the UK's exit from the European Union, all employment law that originated within the EU is set to be repealed at the end of 2023.
New legislation may therefore be introduced over the coming ten months in areas including:
Agency workers' rights
The working time directive
TUPE
In each of the many legislative areas involved, existing laws may be either maintained in their current state, amended, or replaced. When we know more, we'll share an update, so be sure to have signed up to our newsletter.
Changes to Holidays
Rounding up our focus on the anticipated UK employment law landscape for 2023, let's take a moment to remember the one-off additional public holiday, due to be held on 8th May, in celebration of the King's Coronation (which takes place on 6th May). How will this impact your business? Are you ready to deal with any knock-on effects, like a potential busy period or increase in time-off requests, that might arise?
Don't forget, our experienced team at Danton are ready to guide your business, with tailored advice on policies, practices and training that will bring you smoothly through whatever the year has in store.