KR HR & TRAINING NEWS ARTICLES

There are several legislative changes to UK employment law expected in 2023. 

Outlined below is an overview of the key changes to look out for.

The Government is backing several private members bills which are currently going through parliament which will deliver benefits to pregnant women, new parents, carers, and victims of sexual harassment.

In addition, the Government is currently pushing through a bill which, if passes, will ‘set fire’ to all employment and health and safety legislation derived from the EU by the end of 2023.  The Retained EU Law Bill will repeal all EU derived laws by the end of 2023.

HOLIDAY PAY FOR FLEXIBLE HOURS AND PART-YEAR WORKERS

You may also be aware of the ever more complicated rules around calculating holiday pay for workers with variable hours and term-time only workers. Recent case law (Harper Trust vs Brazel) has ruled that calculating holiday pay based on the proportion of holiday pay received by full-time employees (known as the 12.07% method) is unlawful, however the alternatives are extremely complicated and lack clarity around precisely how holiday should be accrued for people with variable hours.

The good news is that there is potentially some light at the end of the tunnel because the government is launching a consultation on calculating holiday pay, stating it is “keen to address this disparity to ensure that holiday pay and entitlement received by workers is proportionate to the time they spend working”. To have your say, access the online survey here.

INCREASES IN THE NATIONAL LIVING WAGE AND NATIONAL MINIMUM WAGE

There are some hefty wage increases employers will need to factor in. From April 2023, the following apply:

• Rate for people aged 23 and over – £10.42 per hour (a 9.7% uplift to the current rate of £9.50)
• Rate for 21-22 year olds – £10.18 an hour (a 10.9% uplift to the current rate of £9.18)
• Rate for 18-20 year olds – £7.49 an hour (a 9.7% uplift to the current rate of £6.83)
• Rate for 16-17 year olds – £5.28 an hour (a 9.7% uplift to the current rate of £4.81)
• Apprentice rate – £5.28 an hour (a 9.7% uplift to the current rate of £4.81)

FROM APRIL 2023 THE RATES FOR:

• Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay, Statutory Parental Bereavement Pay and Maternity Allowance will all increase from £156.66 to £172.48 per week
• Statutory Sick Pay will increase from £99.35 to £109.40 per week

EXTRA BANK HOLIDAY

To celebrate the coronation of the King, there is an additional bank holiday on Monday 8th May 2023. Employees will only be able to take the day off if their contract permits this, or the employer closes on that day or if employees request to take the day off as holiday – whether or not it is an additional day’s paid holiday or comes out of the existing holiday entitlement depends on the specific wording of the contract.

On the Horizon in 2023

FLEXIBLE WORKING REQUESTS TO BE DAY ONE RIGHT

The government has confirmed that new legislation will make changes to the right to request flexible working. This would:-

• Make flexible working requests a day one right for employees (thereby removed the current 26 weesk’ service requirement)
• Allow employees to make two request a year (currently only one request in possible)
• Require employees to consult with the employee before rejecting a request
• Shorten the time employers have to reply to a request from three to two months
• Remove the requirement for employees to suit out the likely effects on the business of the change.

There is no enforcement date yet for this new legislation.

Family-Friendly Measures

A number of Private Members Bills, which have received Government backing, will make changes to family-friendly rights if passed in 2023.

The Carer’s Leave Bill 2022-23 will entitle employees to take a week’s unpaid leave in any 12-month period in order to provide or arrange care for a dependant with a long-term care need. It will be a ‘day one’ right and leave can be taken in one single block or on individual days.

The Neonatal Care (Leave and Pay) Bill 2022-23 will introduce a right to leave and pay for employees with responsibility for children receiving neonatal care.

Neonatal care leave will be available as a ‘day one’ right for parents of babies who are admitted into hospital in their first 28 days of life. However, parents will only be eligible to receive paid leave if they have worked for their employer for 26 weeks.

Fertility Treatment (Employment Rights) Bill proposes to allow for an employee to have a legal right to take paid time off work to attend fertility appointments and for their partners to take unpaid time off work to accompany them.

Miscarriage Leave Bill proposes a right for employees to have 3 days paid leave due to a miscarriage or ectopic pregnancy.

The Protection from Redundancy (Pregnancy and Family Leave) Bill 2022-23 which will extend protection from redundancy during or after pregnancy or after periods of maternity, adoption, or shared parental leave for up to 18 months after the return to work.

New rules on combatting workplace harassment

Last year, the government said it would introduce a new duty on employers to play an active role in preventing workplace sexual harassment. The Government is supporting a Bill which will:

• Put employers under an active duty to prevent sexual harassment
• Allow tribunals to increase compensation by up to 25% where employees have been subjected to sexual harassment.
• Reintroduce liability for harassment cause by third parties Employers will be able to avoid liability if they can show that they took all reasonable steps to prevent harassment.

Once this new legislation is in place employers should:

• Update their diversity and inclusion policies
• Consider what additional steps they need to take to prevent sexual harassment
• Ensure that the training they provide to their staff complies with the new law

Draft Code on ‘fire and rehire’

When P & O Ferries dismissed nearly 800 staff in March 2022 without consultation and replaced them with staff on lower salaries, the government committed to producing a new Statutory Code of Practice on dismissal and reengagement (known as ‘fire and rehire’).

Tips, gratuities and service charges

The Employment (Allocation of Tips) Bill proposes that all tips, gratuities and service charges received by an employer are equally distributed to its workers without any deductions. The proposal to legislate took a step closer to becoming law on 20th January 2023, when the Bill passed its final reading in Parliament. The Bill will now go forward to the House of Lords and, if approved, it will become law.

Changes to UK GDPR

The Government recently announced its intention to replace the UK GDPR with a British data protection system in the form of a Data Protection and Digital Information Bill and a further update is expected.

WHEN WILL THESE CHANGES COME INTO FORCE?

It is not yet clear when some of these changes will come into force. It is therefore likely that some of these changes will roll over into 2024. However, it is important for employers to look ahead and start preparing for the introduction of this legislation by reviewing harassment policies and planning staff training.