Employment Law Changes 2023

As a Recruitment agency, it is vital for us to be at the forefront of all legislation updates and changes. This week we have been focusing on Employment LAW. As we negotiate another bumpy financial year, there are a number of significant changes being introduced to employment law that both employers and employees need to be aware of. In this blog, we'll take a look at some of the key changes that are coming into effect over the next couple of years.

1. Changes to the National Living Wage

From April 2023, the National Living Wage (NLW) will be extended to include workers aged 23 and 24. This means that workers in this age bracket will be entitled to a minimum wage of £10.42 per hour, which is currently the rate for workers aged 25 and over. The rate for workers aged 21-22 will also increase to £10.18 per hour, while the rate for those aged 18-20 will rise to £7.49 per hour.

2. Increase in Statutory Sick Pay

From April 2023, the rate of statutory sick pay (SSP) will increase from £99.35 to £109.40 per week. Additionally, from 2024, the government plans to introduce a new SSP allowance for people who are self-isolating due to COVID-19 or other contagious illnesses. This will ensure that workers who are required to take time off work due to illness or quarantine are not financially penalised.

3. Changes to Parental Leave and Pay

From April 2023, the rate of statutory paternity pay (SPP) will increase from £156.66 to £172.48 per week. In addition, from April 2024, the government plans to introduce a new entitlement to Neonatal Leave and Pay for parents of babies who require neonatal care. This will give parents of premature or sick babies up to 12 weeks' leave and pay, in addition to their existing parental leave entitlements.

4. Introduction of Flexible Working Requests

From April 2024, the government plans to introduce a new right to request flexible working for all workers. This will allow workers to request changes to their working patterns, such as working from home, changing their hours or working part-time. Employers will be required to consider these requests seriously and provide a valid reason for any refusals.

5. Changes to Non-Disclosure Agreements (NDAs)

The government has also proposed to introduce new measures to regulate the use of Non-Disclosure Agreements (NDAs) in employment contracts. From April 2024, employers will be required to provide clear explanations of the terms and limitations of any NDAs to employees. Additionally, NDAs will not be able to prevent workers from reporting misconduct to the police or other regulatory bodies.

In conclusion, these changes to employment law represent a significant shift towards greater protections for workers and more flexible working arrangements. Employers and employees should be aware of these changes and take steps to ensure that they are compliant with any new regulations that come into effect. By staying up-to-date with employment law changes, businesses can ensure that they are providing a safe and fair working environment for their employees, while also meeting their legal obligations.

6. The Retained EU Law (Revocation and Reform) Bill

By the end of 2023, the Retained EU Law (Revocation and Reform) Bill aims to abolish all EU law that is not specifically reinstated or replaced . This may affect a number of EU-derived secondary legislation, including the Working Time Regulations, Agency Worker Regulations and TUPE. There are concerns around whether the end of 2023 will provide enough time to reform these laws, although there is a potential extension to June 2026 but no later.

7.  Carer’s Leave Bill

The Carer’s Leave Bill proposed the introduction of a day one right for up to five working days of unpaid leave for employees with long-term caring responsibilities of a dependant, either arranging or providing care. Dependants include partners, children, parents, people living in the same house as the employee and people who reasonably rely on the employee. Proof is not needed to show how the leave has been used. If an employer dismisses an employee because of this leave, it will be an automatic unfair dismissal.

8. Redundancy Protection for Pregnancy and Family Leave

In the redundancy process an employer has an obligation to offer those on maternity leave, adoption leave or shared parental leave suitable alternative employment (if it exists) as a priority over other employees provisionally selected for redundancy. Failure to do so is automatically unfair. The Protection from Redundancy (Pregnancy and Family Leave) Bill proposes to increase this protection to extend to the point from which the employee tells their employer they are pregnant/ will be taking adoption or shared parental leave and also after they have returned to work, potentially for a period of up to 18 months after the child’s birth/ adoption.