Employment Law Changes 2023: What Employers Need to Know
While 2023 is well underway, UK employers are gearing up for another wave of changes in employment law. As the year unfolds, businesses must brace themselves for a range of regulatory shifts that will shape the employment landscape and necessitate careful attention and adaptation.
From revised minimum wage rates to adjustments in family-friendly payments, employers need to stay informed to navigate these changes effectively.
Quick Links
The National Minimum Wage and National Living Wage
Since April 1st 2023, new rates have been introduced. Here’s what you need to know:
- Ages 23 and over (NLW): Increased from £9.50 to £10.42 per hour.
- Ages 21-22: Increased from £9.18 to £10.18 per hour.
- Ages 18-20: Increased from £6.83 to £7.49 per hour.
- Ages 16-17: Increased from £4.81 to £5.28 per hour.
- Apprentice Rate: Increased from £4.81 to £5.28 per hour.
Employers should be prepared to implement these revised rates and comply with the new minimum wage requirements.
Statutory Sick Pay (SSP)
Statutory Redundancy Pay
Flexible working requests
Amendments to existing employment rights related to flexible working requests are on the horizon. The government has committed to several changes, including:
- Making the right to request flexible working a day one right.
- Requiring employers to consult with employees before rejecting a request.
- Allowing two requests within a 12-month period (up from one).
- Reducing the employer's response time to two months.
The introduction date for these changes is currently unknown, providing an opportunity to review your flexible working policy before the law is enacted.
The Retained EU Law (Revocation and Reform) Bill
This Bill holds significant implications for employers, as it could potentially impact all EU-derived employment laws. Unless legislation is introduced to preserve it, these laws will be automatically repealed on December 31st 2023.
Areas such as agency workers’ rights, Working Time Regulations, and TUPE (which governs staff transfers), are expected to be affected. Despite uncertainties, it is essential to remember that the UK has its own robust framework for protecting workers’ rights, and many UK rights already surpass EU requirements.
Frequently Asked Questions
The new National Minimum Wage and National Living Wage rates came into effect on April 1st, 2023. The new Statutory Sick Pay (SSP) and redundancy pay limits came into effect on April 6th, 2023.
Your most urgent task is to ensure your payroll systems are updated to reflect the new minimum wage, SSP, and statutory redundancy pay limits that are already in effect. Following that, reviewing your flexible working policies is a proactive step.
The full impact is still uncertain. However, it is wise to review your reliance on regulations derived from EU law, particularly concerning working hours and agency staff. We recommend seeking specific legal advice to assess your potential exposure.
Stay Ahead of Employment Law Changes
By staying attuned to future developments and proactively adapting, employers can ensure compliance while upholding the rights and well-being of their employees. Our solicitors for employers can help.
Contact Our Employment Team
