Employment Key Changes 2023: What is coming?
The year ahead see's changes to rates of pay, major reforms to EU law and details on the much-awaited Employment Bill.
1. Increased Rate Changes
The new year welcomed various rate changes. Here is what you can expect:
- National Minimum Wage / National Living Wage rates are set to increase from 1st April 2023.
| 23 years or older | Increase from £9.50 per hour to £10.42 per hour |
| 21 – 22 years old | Increase from £9.18 to £10.18 per hour |
| 18 – 20 years old | Increase from £6.83 to £7.49 per hour |
| 16 – 17 years old and apprenticeships | Increase from £4.81 to £5.28 per hour |
- Statutory maternity, adoption, paternity, shared parental pay. The rate of £156.66 per week will increase to £172.48 per week on 2nd April 2023.
- Statutory sick pay. The rate of £99.35 is set to increase to £109.40 per week. This increase is expected to occur on 6 April 2023.
2. Retained EU law (Revocation and Reform) Bill
The Retained EU Law Bill will repeal all EU law unless new legislation keeps it in place. The introduction of the Bill could see changes to:
- Transfer of Undertakings (Protection of Employment) Regulations
- The Working Time Regulations
- The Agency Workers Regulations
- Fixed-term Employees Regulations
- Part-Time Workers Regulations
- The Information and Consultation of Employees Regulations
- Various health and safety regulations
- Maternity and Parental Leave Regulations
3. Employment Bill
The much-awaited Employment Bill, mentioned in 2019, is likely to come in to force in 2023. The Employment Bill is said to include some of the following:
- Changes to the existing right to request flexible working. Employees no longer need 26 weeks of service to request flexible working; they can do so right away.
- Proposals to provide job security for new and expectant mothers for up to 6 months after their maternity leave ends.
- Introducing the right to receive up to 12 weeks’ paid neonatal leave for parents of babies needing neonatal care.
- Providing employees who are carers the day one right to receive one week’s unpaid leave per year.
- Allowing workers on variable hours the right to request a more predictable and stable work contract after 26 weeks’ qualifying service.
- Proposals making it unlawful for employers to withhold tips, gratuities and service charges from workers.
- Imposing a new duty on employers to prevent sexual harassment at work (extending to third parties). There are also proposals to extend the time limit for claims to 6 months.
Also in 2023, the Harbours (Seafarers’ Remuneration) Bill will come into effect, giving UK ports authority to deny access to ships that pay their crew members below the national minimum wage.
The Transport Strikes (Minimum Service Levels) Bill will likely take effect in 2023. It requires employers and unions to agree on a minimum service level during transport strikes for three months. It will also remove the automatic unfair dismissal protection available to employees who participate in strike action during that period.
Shared Parental Pay: Father wins sex discrimination case
A father, who was given only two weeks full paid parental leave when his wife was advised to return to work to combat post-natal depression, has won a sex discrimination claim. Mr. Ali was originally an employee for Telefónica whose maternity policy gave females with 26 weeks service the option of 14 weeks’ enhanced maternity pay, followed by 25 weeks at the rate of statutory maternity pay. The policy also offers new fathers two weeks full paternity pay leave.
Mr. Ali’s wife was diagnosed with post-natal depression following the birth of their child and was advised by medical staff that returning to work would assist with her recovery. Mr. Ali took two weeks paternity leave followed by a number of week’s annual leave. Upon returning to work Mr. Ali was informed that he was entitled to take shared parental leave but that he would only be paid statutory shared parental leave. Mr. Ali claimed direct sex discrimination in an employment tribunal.
Acknowledging that two weeks maternity leave is compulsory for new mothers, Mr. Ali argued that male employees should be given the same right to leave on enhanced pay for the next 12 weeks as their female colleagues. Mr. Ali argued that his employer’s policy viewed that a man taking care of his baby is not entitled to the same pay as a woman taking care of her baby, a choice that was denied to him and his wife.
Findings
The ET upheld Mr. Ali’s sex discrimination claim. The ET believed that the role of primary carer should be the choice if the parents and that it should be free of “generalised assumptions” that the mother should be the primary carer and get full pay. According to the tribunal, in this case, Mr. Ali was best placed to perform that role, given his wife’s post-natal depression.
Learning Points
Employers are advised that if they enhance maternity pay that they also enhance shared parental pay. 24.7% of employers already enhance, or plan to enhance, shared parental pay to match the enhancement of maternity pay. Employers should always have a clear maternity, paternity, adoptive and shared parental leave policies in their staff handbook.
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Are you up to date with family friendly leave?
Family friendly leave has developed significantly in recent years. Keeping abreast of what’s what can be challenging for employers.
BrightPay’s employment law experts have designed a free webinar for employers, which will give attendees an overview of Maternity, Paternity, Shared Parental Leave and Parental Leave how to process them directly through payroll.
The webinar will highlight frequently asked questions in relation to the leave types mentioned above, such as:
- Who is eligible?
- How employees apply?
- Pay and other benefits during family friendly leave.
- Managing family friendly leave efficiently and legally!
The webinar will give attendees a chance to ask any questions you may have, with an interactive Q&A session at the end of the webinar.
Places are limited for this webinar. Don’t miss out – book your place now!
If you cannot attend the webinar, don't worry – the webinar will be recorded and as long as you have registered you will receive a link to the recording afterwards.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
Shared Parental Leave, how to avoid discrimination claims from male employees
Do you currently offer enhanced maternity pay to women on maternity leave, i.e. amounts over statutory maternity pay? If yes, you will need to consider whether or not to offer enhanced shared parental pay.
Historically, offering enhanced maternity pay did not amount to unlawful discrimination because women were granted special protection in their biological position as a mother, therefore justifying different treatment and pay. However how valid this argument will be going forward is questionable. Once parents opt to share statutory parental leave, it could be difficult to that argue that the mother has a protected biological position. This may present a discrimination risk for employers who do not offer the same enhanced maternity pay to fathers taking shared parental leave.
To date all guidance issued by the Government has ignored this issued. They have taken the stance that as enhanced payments are not imposed by legislation they will not be commenting on the issue. Consequently, employers looking to stay within the law on this issue will have to await guidance from tribunal decisions.
In the meantime the advice to employers who pay enhance maternity pay is to review all related policies and procedures. When implementing changes, possible considerations might include:
• To provide an enhanced maternity scheme and a separate shared parental pay scheme in tandem, but advise that parents who opt for shared parental leave are not eligible for enhanced maternity pay;
• To reduce enhanced maternity payments to the statutory level
• To offer an equivalent enhanced shared parental leave pay scheme that applies to parents of either gender, although the most expensive option this may well be the safest option available to employers.
This is a complex issue and one where what is correct, may well depend on the business needs and other factors, such as the gender demographics of individual workforces. Being such a grey area employers are well advised to be cautious when making any decisions.
Bright Contracts – Employment Contracts and Handbooks.
BrightPay – Payroll & Auto Enrolment Software.
