From April 2023, the statutory payments increase significantly. Please make sure you update your records and payroll.
With effect from 1 April 2023, the National Minimum Wage (NMW) and National Living Wage (NLW) increased as follows:
- NLW for workers aged 23 and over increases from £9.50 to £10.42 per hour:
- NMW for 21 to 22 year olds increases from £9.18 to £10.18 per hour;
- NMW for 18 to 20 year olds increases from £6.83 to £7.49 per hour;
- NMW for 16 to 17 year olds increases from £4.81 to £5.28 per hour;
- The apprentice rate increases from £4.81 to £5.28 per hour; and
- The accommodation offset rate increases from £8.70 to £9.10 per day.
From 2 April 2023 statutory maternity, paternity, adoption, shared parental and parental bereavement pay will increase from £156.66 to £172.48 per week.
From 6 April 2023:
- Statutory sick pay will increase from £99.35 to £109.40 per week.
- The Vento bands for injury to feelings in discrimination cases will increase to the following:
|· Lower Band for less serious cases: £1,100 to £11,200;
|· Middle Band for cases which do not merit an award in the upper band: £11,200 to £33,700; and
|· Upper Band for the most serious cases: £33,700 to £56,200.
|· Injury to feelings in excess of £56,200 can be awarded in exceptional cases.
- For calculating statutory redundancy pay and the basic award, the maximum amount of a week’s pay increases from £571 to £643.
- The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,959 to £7,836.
- The maximum compensatory award for unfair dismissal increases from £93,878 to £105,707.
Bank Holiday for the King’s coronation
An additional bank holiday has been declared for 8 May 2023. Employers should review their contracts of employment and policies to determine whether:
- Employees are entitled to take this day as an extra paid bank holiday;
- Employees will be required to take some of their holiday entitlement / or they will be required to work; or
- You will be honour it as a gesture of goodwill.
Subject to the contract wording, full time employees are entitled to a minimum holiday entitlement of 28 days’, inclusive of bank holidays.
Other potential changes in employment law for 2023:
- Flexible working rights is likely to be extended and apply from day one of employment, rather than employees having to wait until they have 26 weeks’ continuous service, allowing two requests in a 12-month period and the requirement for employers to respond to the request within two months rather than three months.
- The Retained EU Law (Revocation and Reform) Bill aims to abolish all EU derived UK legislation by 31 December 2023, although this can be extended to June 2026 if needed. We will have to wait and see if the EU legislation is replaced by new UK acts. However, this could however bring a significant amount of change to UK employment law. This is likely to include a new British data protection framework to replace the UK General Data Protection Regulation.
- The introduction of a code for “fire and rehire” will likely follow the end of the consultation period in April 2023 setting out detailed steps and employer should follow when undertaking such a process. This stems from the dismissal of UK workers by P&O Ferries.
We await the outcome of the government’s consultation on the calculation of holiday entitlement and pay for part year and irregular hours workers following the Harper Trust v Brazel
- The law on sexual harassment may be expanded to require employers to take all reasonable steps to prevent sexual harassment in the workplace, including liability for sexual harassment from third parties and increases in compensation for failures, something which has fallen through the legislation gap currently.
- Neonatal leave is being considered by the government to give new parents the right of up to 12 weeks’ extra leave and pay if their baby is receiving neonatal care. Similar to maternity leave, the right to take leave is likely to take effect from day one of employment but pay is likely to require 26 weeks’ continuous service.
- Extending redundancy protection for women and new parents from the end of statutory leave to 6 months after their return to work.
- One week’s unpaid carer’s leave for employees who have dependents with long-term care needs may be introduced. This is likely to be available to employees from day one of employment and the leave would not have to be taken all at once. Employees would be protected from suffering a detriment or being dismissed by reason of taking carer’s leave.
- Paid leave may be introduced for individuals undergoing fertility treatment or as a result of a miscarriage, ectopic pregnancy or molar pregnancy.
- An act may come into force ensuring that all workers receive all the tips, gratuities and service charges
As you will appreciate, the government has been tied up with the effects of COVID and the cost of living crisis, so we wait and see whether any of the above will actually come into force.