Employment Law in 2023

Not all employment law changes employers need to be aware of come from statute. Keeping up with the key cases that impact business decisions is crucial. Which is why as well as covering what’s coming next I’ve also done a roundup of changes you may have missed in 2022.

Employment Law: 2022 Roundup

Holiday Pay for Part Year Workers

On 20th July 2022, The Supreme Court in the landmark case of Harper Trust v Brazel, held that holiday entitlement and holiday pay for “part-year” workers and employees on permanent contracts and working irregular hours, must not be reduced pro-rata. People on these contracts are entitled to 5.6 weeks annual leave paid at their average weekly pay.

Signatures of Statements of Fitness for Work

With effect from 1st July 2022 a statement of fitness for work can be signed by health professionals other than a Doctor, for example a nurse, occupational therapist, pharmacist or physiotherapist.

In addition, statements of fitness for work no longer have to be signed in wet-ink, the signature box has been replaced with the issuer’s name and profession.

Digital Right to Work Checks

With effect from 6th April 2022 employers are no longer able to accept a physical Biometric Residence Permit or Biometric Residence card - all biometric card holders will be required to evidence their right to work using the Home Office online service.

WIth effect from 1 October 2022, right to work checks on UK and Irish citizens can either be carried out manually or using certified Identity Service Providers (IDSPs).

Ban on Exclusivity Clauses for Low Income Workers

With effect from 5th December 2022 employers will not be able to enforce exclusivity clauses in workers contracts where the worker’s earning do not exceed the lower earnings limit. This is an extension to the current ban on exclusivity clauses for zero hour workers which came into force back in 2015.

This means that from 5th December 2022, employers cannot dismiss a worker who earns less than the lower earnings limit for breaching an exclusivity clause - in this situation the employee can bring an automatic unfair dismissal claim for which there is no minimum length of service requirement. Workers will also be protected from detrimental treatment as a result of breaching an exclusivity clause.

What to expect in 2023

National Minimum and National Living Wage

In April 2023, National Living Wage rates for those aged 23 and over will rise from £9.50 to £10.42 whilst the rate for 21 to 22 year olds will rise from £9.18 to £10.18. This is a significant rate increase for employers, particularly at a time of other increased costs.

Statutory Rates

Also in April 2023, the Statutory Maternity Pay, Statutory Adoption Pay, Statutory Paternity Pay and Statutory Shared Parental Pay will increase from £156.66 per week to £172.48 per week. Whilst Statutory Sick Pay increased from £99.35 to £109.40 per week.

Extra Bank holiday for King’s Coronation

In 2023 we have an additional bank holiday on Monday 8th May 2023 following the coronation of King Charles III on Saturday 6th May.

Whether or not bank holidays are paid is a contractual matter, there is no legal requirement to give people time off on bank holidays, for full details on entitlement to pay see our guide for employers.

The Retained EU Law (Revocation and Reform) Bill

It is aimed that by the end of 2023 all EU law that has not been specifically reinstated or replaced will be abolished. This means a large amount of legislation, including employment regulations needs to be reviewed and specifically written into UK law.

There are concerns around whether the end of 2023 deadline gives enough time and therefore the possibility that legislation simply disappears. However, there is a possibility of an extension to June 2026. We will be keeping a close eye on developments around this Bill in 2023 - to keep up to date sign up to our mailing list for news as we get it.

Article last updated: 10 January 2023