From holiday pay to increases to statutory payments, the employment law landscape in the UK is constantly evolving. With 2023 just around the corner, now is a good time to take a look at some of these updates and what they mean for businesses and employees alike.
To help you along this journey, we have a created a round up some of the biggest UK employment law updates that occurred in 2022, and those that are set to take place in 2023.
20th of July 2022 - Holiday Pay for 'Part-Year' Workers
Referring to the Harper vs Brazel case, on the 20th of July 2022, the Supreme Court ruled that permanent employees (and workers) who only work for part of the year (such as teachers on term-time only contracts) are entitled to 5.6 weeks’ paid holiday, regardless of how many hours they have worked.
As a result of this, the 12.07% holiday pay calculation used to pro-rata holiday pay, is now non-compliant with the Working Time Regulations.
So if you want to prevent any unwelcomed tribunal claims, you need to be revaluating your 'rolled up holiday pay', and updating your employment contracts and policies (if you haven’t already).
But if in doubt, and not sure where to start, it is always advisable to seek advice from HR experts such as Dakota Blue Consulting, to guide you through this process and help ensure your business is compliant with all current employment law regulations in the UK.
21st of July 2022 - Using Temporary Workers During Industrial Action
To help employers minimize the impact of staff strikes, in July 2022, the UK government had officially lifted the ban on using agency and temporary staff during strike action.
To further help support businesses in these challenging situations, the government also increased the damages cap that businesses can claim against a Trade Union, if the strikes are deemed unlawful.
This is great news for employers (though no one really wants to be in that position)!
1st of October 2022 - Right to Work Checks
As a result of the pandemic, the government had relaxed the rules around employees’ right to work checks to allow employers to conduct these checks via video call or through scanned documents.
However, as of the 1st of October 2022 this concession is no longer in place. Employers are now required to either:
- Revert back to their in-person, physical right to work checks on all employees,
- Use the Home Office online service,
- For British or Irish Citizens, employers can use an identity service provider (IDSP) that offers identity document validation technology (IDVT).
So if you have not yet changed your process, and want to prevent any civil penalties, we recommend starting now!
1st of April 2023 - New National Living Wage and National Minimum Wage
In the autumn of 2023, Chancellor Jeremy Hunt confirmed that there would be new National Living Wage (NLW) and National Minimum Wage (NMW) rates introduced in April.
All increases can be seen below:
| Rate from April 2023 | Current rate (April 2022 to March 2023) | Increase | |
| National Living Wage | £10.42 | £9.50 | 9.7% |
| 21-22 Year Old Rate | £10.18 | £9.18 | 10.9% |
| 18-20 Year Old Rate | £7.49 | £6.83 | 9.7% |
| 16-17 Year Old Rate | £5.28 | £4.81 | 9.7% |
| Apprentice Rate | £5.28 | £4.81 | 9.7% |
| Accommodation Offset | £9.10 | £8.70 | 4.6% |
As these are effective from April, it is important that these changes are reflected in employee contracts and payslips for April.
2nd of April 2023 - New Family Friendly Payment Rates
Along with NMW and NLW, on the 2nd of April 2023, statutory family friendly payment rates such as Statutory Maternity/Paternity/Adoption/Shared Parental/Parental Bereavement Pay, will increase from £156.66 per week to £172.48 per week.
While we will see an increase in these rates, the minimum weekly amount an individual must earn to be entitled to these payments will remain at £123. It is important that these are reflected in all company leave policies and contracts (where necessary).
6th of April 2023 - Statutory Sick Pay
Statutory Sick Pay (SSP) is also set to increase from £99.35 to £109.40 per week.
While we will see an increase in these rates, the minimum weekly amount an individual must earn to be entitled to these payments will remain at £123.
8th of May 2023 - New Bank Holiday
To mark the Coronation of our new King, King Charles III, an extra bank holiday day has been confirmed to take place on the 8th of May.
This may cause some disruption to your business. So if you need a helping hand understanding your rights, obligations, and how to navigate the new changes in UK employment law, we recommend consulting with HR experts like Dakota Blue Consulting.
TBC 2023 - Flexible Working
After much deliberation from CIPD's #Flexfrom1st campaign, the UK government have confirmed that in 2023, employees will now have the right to request flexible working from day one, instead of waiting for the 26-week qualifying period to expire.
Employers will also be required to:
- Consult and explore available options with their employees, before rejecting a flexible working request.
- Provide employees with the option to make two flexible working requests in any 12-month period.
- Respond to requests within two months, down from three.
- Remove the requirement for employees to set out how the effects of their flexible working request might be dealt with by their employer.
TBC - Neonatal Leave
The UK government have confirmed their backing for the Neonatal Care (Leave and Pay) Bill.
This bill will introduce new rights for parents of premature babies in the UK, allowing them to take up to 12 weeks of paid leave, in addition to other leave entitlements, such as maternity and paternity leave, so that they can spend more time with their baby whilst they receive neonatal treatment.
The right will apply to parents of babies who are admitted into hospital in the first four weeks of their life, and who have a continuous stay in hospital of seven full days or more.
To be eligible, employees must have a minimum 26 weeks’ continuous service and earn above £123 per week minimum threshold.
TBC 2023 - Tips, Gratuities and Service Charges
The Employment (Allocation of Tips) Bill is expected to become part of the UK's employment law in 2023, making it unlawful for employers to make deductions from tips, gratuities and service charges.
Workers will have a right to request information on their tipping record, and employers will be required to respond to such requests within 4 weeks.
Need Help Understanding Your Rights?
We understand that all these changes can be quite overwhelming for small businesses who may not have an in-house HR consultant.
So if you're looking for expert advice and guidance on navigating the new employment law updates in the UK, we recommend consulting with HR experts like Dakota Blue Consulting.
With a team of experienced HR professionals at your disposal, you can be sure that your business is compliant and equipped to deal with all changes ahead.
Contact us today to learn more about our services and to get started on your HR journey!