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  • Writer's pictureSusan Wakelin

What employment law changes can we expect in 2023

Updated: May 25, 2023

There are already a number of Bills currently on the path to becoming law in 2023, but how will these effect you?

2023 employment law changes

The Retained EU Law (Revocation and Reform) Bill

One of the biggest changes could be to all EU derived employment law, which is set to be automatically repealed on 31 December 2023 unless legislation is introduced to keep it. This is part of the government's commitment to ensure that only regulation fit for purpose and that suites the UK will remain on the statute book.

This could include changes to TUPE, working time legislation, agency worker laws and much more.

Statutory Payments

National Living and National Minimum Wage Increases

With effect from 1 April 2023, the national living wage for those of 23 years of age and above will increase by 92p to £10.42 per hour.

The national minimum wage for those aged under 23 years will increase:

  • by £1 to £10.18 (21 – 22 years)

  • by 66p to £7.49 (18 – 20 years)

  • by 47p to £5.28 (16 – 17 years, and apprentices under 19, or over 19 in the first year of their apprenticeship)

Family Friendly Statutory Payments

With effect from 2 April 2023, the rate of statutory pay for maternity, paternity, adoption, shared parental and parental bereavement leave will increase by £15.82 to £172.48 per week.

Statutory Sick Pay

With effect from 6 April 2023, the rate for statutory sick pay will also increase by £10.05 to £109.40 per week.

Statutory Redundancy Pay

In addition to the above rate increases, the statutory redundancy pay maximum weekly amount will be reviewed and any increase published in February 2023 for a 6 April 2023 change.

The King's Coronation

The King's coronation will be held on Saturday, 6 May 2023 and, to celebrate this, the UK has been awarded an additional bank holiday on Monday, 8 May 2023.

The wording of an employee's contract of employment will determine whether or not they will benefit from this additional bank holiday. Although employers may choose to grant the extra day, even where employees are not contractually entitled to it, as a goodwill gesture.

Expected New and Revised Employment Law

Minimum Service Levels during Strikes

The Strikes (Minimum Service Levels) Bill aims to provide minimum service levels to be in place during any period of industrial action in industries, including the health service, fire and rescue service, education, transport and border security.

Although this appears to be high on the government's agenda, an implementation date is still to be confirmed.

Tips, Gratuities and Service Charge

The Employment (Allocation of Tips) Bill could, in 2023, allow workers to keep 100% of tips and gratuities they have earned to be paid to them without any deductions. Tips include all service charge or additional payments made whether by card or cash.

In addition to this, employers will need to demonstrate that they have distribute tips fairly and transparently between all workers in line with a code of practice and keep accurate records to evidence this.

Family Friendly

2023 may also see more family friendly rights become law.

This includes the Carer’s Leave Bill, which gives one week of unpaid leave to employees who are providing or arranging care for a dependant.

The Neonatal Care (Leave and Pay) Bill, allows eligible parents to take up to twelve weeks of leave and pay if their baby requires neonatal care, in addition to any maternity leave.

In addition to this, the Protection from Redundancy (Pregnancy and Family Leave) Bill will provide pregnant employees and new parents greater protection from redundancy during pregnancy and for six months after their return to work.

Flexible Working

The government has made a commitment to increase employee rights in relation to flexible working, including being able to make a request from day one of employment and being able to make up to two requests in any twelve-month period.

Employers will also be required to consult with employees prior to rejecting a flexible working request.

SWan HR Consultancy (London and Kent)

SWan HR is an HR consultancy that specialises in HR support for small to medium sized businesses in the South East.

"Where HR Succeeds, the Business Achieves"

SWan HR was founded by Susan Wakelin, MCIPD, who is a qualified HR professional with over thirty years' experience, from setting up, auditing and improving HR functions to management coaching and supporting organisations through difficult situations, transformation and change.

SWan HR provides a broad range of tailored HR services including an HR audit, HR advice, HR outsourcing, HR coaching and project work for all businesses.

Free HR consultation

Contact Susan Wakelin now to take advantage of a free half-hour consultation to talk through your initial HR concerns and how you can manage these going forward.

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