What are some employment law changes I need to know about in 2023?
We are all witnessing the world changing around us: cultures, workplace norms, geopolitical landscapes, and the growing use of technology.
The employment landscape has also changed in recent years to meet the expectations of employees and the needs of employers.
> Reference: Layoffs and Rehires – What You Need to Know
It can be difficult for smaller companies to keep up with what’s going on, especially since lobbying and consultations are usually done with the requirements of larger companies in mind.
Therefore, it is important for small business owners to recognize what is to come and plan accordingly. We hope this article outlining possible employment law changes for 2023 will help you navigate the changing waters of employment this year.
Of course, most legislation, especially proposed legislation, is usually politically driven. So it’s worth bearing in mind that much of what is declared and advocated may be for show rather than for genuine hope of imminent implementation.
Still, it doesn’t hurt to keep up with what’s being discussed.
Employment Law Amendment Coming into Force in 2023
Before we start talking about what’s in the pipeline, it’s worth mentioning some key changes coming in the first half of the year.
First, on April 1st, there will be a new national minimum wage increase. These were announced last November and apply to the new tax year.
Prices are as follows.
- A National Living Wage of £10.42 per hour for workers over the age of 23
- £10.18 per hour for 21-22 year olds
- £7.49 per hour for workers aged 18 to 20
- The young worker rate for workers between the ages of 16 and 17 is £5.28 per hour.
- Apprentices pay the same rate at £5.28 per hour.
Getting a good salary is very important. All employers are legally obligated to pay their employees salaries in accordance with current law. Penalties for violations can be severe. Fines of up to £20,000 per employee. Her listing by HMRC which could cause reputational damage. It is prohibited to be a director of a company.
Mistakes are easy to make, like forgetting birthdays, misclassifying, or not paying full hours. It’s important to tackle your mistakes head-on and not risk costly losses in court.
Changes to Maternity Allowance and Injury and Sickness Allowance
The next raises to keep in mind are statutory maternity, paternity, adoption, share parent and sick pay. These price increases will go into effect on his Sunday, April 2nd and will be as follows:
- An increase of £172.48 from £156.66 per week for the payments mentioned
- Also on this day, the statutory sick pay will increase from £99.35 to £109.40 per week.
> See: Legal Maternity Allowance UK
coronation bank holiday
Finally, don’t forget an additional holiday to mark the coronation of a new king. The holiday on Monday, May 8, takes place two days after him after the ceremony itself.
Employers should remember that this bank holiday is in addition to the standard annual bank holiday of eight.
As an employer, you may be wondering if this bank holiday applies to your employees. The answer depends on the terms of the bank holiday in your employment contract.
Contracts that refer to a specific number of bank holidays, or contain clauses requiring bank holidays to be taken at various times of the year, are obligated to give teams a day off on the Monday following the coronation. means no. In that case, the hours may go unpaid.
Of course, as a sign of goodwill, you may choose to give them paid time off. This is a good way to create a positive team spirit while on vacation. It’s also a good idea to let him know that this is his one-time opportunity to manage expectations for future events.
2023 legislative changes confirmed
The main piece of new legislation that small business owners should be aware of is the Retained EU Legislation (Cancellation and Reform) Bill 2022. If there is currently a conflict between EU and UK law, EU law will prevail over UK law. This will be suspended after his December 31st of this year, allowing the government to change all EU laws that have been in place since Brexit.
Of course, this has far-reaching implications. So there is already some doubt as to whether this new law will be postponed, perhaps he will be postponed until 2026. Temporary worker rights, working time regulations, TUPE, etc. affect the movement of staff between companies. But there are no details yet.
Over the next few months, there will be more proposed changes to the law regarding how employees are hired. It is important to recognize that some UK rights already go beyond what EU law requires, such as holiday entitlements and extended maternity leave.
Flexible work request
Employers should also be aware of confirmed plans for making changes regarding flexible work requirements. You should discuss your options with your employees. An employee has the right to request two flexible working hours within a period of 12 months. It will take her two months to respond to these requests. Now the law stipulates that he is three months.
Finally, a new code of conduct has been issued for dismissal and rehiring procedures. Although not legally binding, the court can raise the award by 25% if the court feels the code is not being followed.
New Employment Law Proposed for 2023
You may have heard that the government introduced the Strike (Minimum Service Level) bill to Congress in response to the strikes we all experienced this winter. This replaces previous legislation on minimum service levels in the transport sector. The new bill is broader in scope than previous bills, giving the government powers to set minimum service levels for health, border security, education, fire and rescue. Transportation services, nuclear facility decommissioning, radioactive waste and spent fuel management.
The bill, which would apply to England, Wales and Scotland, would criminalize strikes, remove unfair dismissal protections from strikers, and impose fines on trade unions if they fail to comply with employers’ labor requirements on notice. It will be.
There’s clearly politics at play here, and no certainty about implementation. It is often featured in the news, so be careful.
zero hour contract
Earlier this month, the government also started consultations on how wages for workers on irregular or zero-hour contracts should be calculated. This follows his Harpur Trust v. Brazel and Unison Supreme Court ruling last July 2022.
A court decision brought holiday pay for part-time teachers in line with the 1998 Working Hours Regulations. However, there was an anomaly in how holiday pay was calculated for irregular-time workers compared to part-time workers. regular time workers.
This is a worrying decision for employers. Because it means that some part-time workers are entitled to more vacation entitlements than part-time workers who work the same number of hours each year. Government consultations will consider ways to tackle inequality.
What has been proposed is an alternative method for calculating vacation benefits that would provide employers with a clear and understandable method while allowing vacation entitlements to be calculated consistently. In the meantime, employers must calculate vacation pay correctly until the judgment is reversed.
These are the major changes to the 2023 Employment Act that we know of at this time.
But with general elections coming up next year and a likely recession, more proposals and bills are being debated as one of the major parties comes under pressure and another seeks to profit. expected to be
Of course, business owners may not be experts in these matters, or may not have the time or inclination to go into detail. These are important issues, and while many of these proposals are still in their early stages, it is important to plan ahead and be aware of the risks of non-compliance. When in doubt, seek professional advice.
Sue Tumelty Human Resources Department
References
Dismissal of long-term sick leave