Changes to Employment Law in 2023

There are a number of significant changes coming up in Employment law in 2023. We will see the usual increases to the National Minimum Wage and Living Wage and the compensation limits for the Employment Tribunal (including the Vento bands for discrimination).

In this article, we have set out the main changes coming to Employment Law as these new bills progress through parliament which be of interest to both employers and employees.

Here are the main changes expected to affect Employment Law in 2023:

Flexible Working

Currently, the law states that an employee must have worked for 26 weeks before they can make a statutory flexible working request. Employees can make one request per year and the employer must notify them of the outcome of the request within three months.

However, the Employment Relations (Flexible Working) Bill will see some significant changes, which will favour employees, these include:

• Day 1 right – Employees can make a flexible working request from day 1 of their employment removing the previous requirement of 26 weeks service.
• 2 statutory requests a year – Employees will be able to make 1 further request per year allowing them to make 2 requests for flexible working in 12 months.
• 2-month response time – Employers will have to respond to a flexible working request within 2 months rather than the original 3-month timeframe.

The Bill passed its second reading on the 28th of October 2022 therefore it is anticipated to become law in 2023.  

For more information on Flexible Working please visit our “15 things you need to know about flexible working” article.

Carer’s Leave Bill

The Carer’s Bill is set to introduce the legal right for employees to take five days of unpaid leave for long-term caring responsibilities for a dependant. Dependants are considered to be the following; partners, children, parents, people living in the same house as the employee as well as people who reasonably rely on the employee. Employees will also have the legal right to this from day one of their employment.  

Once the bill becomes law employees wishing to take this leave will have to give their employer notice which is twice the length of the leave they propose to take (as is the case with annual leave requests). Proof will not be required on how the leave has been used.

All employees will also be protected from dismissal due to requesting such leave. If an employer dismisses an employee as a result of taking carers leave it will be considered automatic unfair dismissal.

Tip Allocation

When tipping in a restaurant or bar it isn’t always certain that the staff member will receive the full benefit of the tip.  A new bill called “The Employment (Allocation of Tips) Bill” proposes to make it unlawful for employers to take a percentage of their employee’s tips meaning employees will receive 100% of their tips, which should lead to an increase in pay for some workers.

It is expected that employers will have to keep a record of the tips received and how they have been allocated and provide a written policy confirming this. This Bill will hopefully create a fairer and more transparent treatment of tips once it becomes law.

Redundancy protection for pregnancy and family leave

Current legislation states that an employer has a legal obligation to offer those on maternity leave, adoption leave or shared parental leave suitable alternative employment (when possible) as a priority over other employees selected for redundancy. Failure to comply with this requirement could lead to unfair dismissal and findings of discrimination.

The new proposed bill called “Protection from Redundancy (Pregnancy and Family Leave) Bill” provides added protection for employees. Once introduced employees will be protected from the point of informing their employer that they are pregnant or taking adoption or shared parental leave to six months after they have returned to work.  

Neonatal Care Bill

The Neonatal Care (Leave and Pay) Bill provides parents with a new right to paid time off if their baby requires neonatal care. Once introduced, it will give both parents up to 12 weeks extra leave and pay to spend vital time with their babies if they are born premature or sick without the worry of returning to work, as long as they meet the qualifying criteria. 

The bill is passing through parliament and may become law in a few months’ time.

Additional information or support

In today’s ever-changing legal landscape, it’s crucial for employers to stay proactive and prepared for potential upcoming legislation. While the bills we mentioned earlier may not have been formally introduced at this moment, it’s essential to recognize the importance of anticipating their implementation and taking appropriate measures to adapt. By doing so, employers can ensure compliance and maintain a competitive edge in the market.

If you find yourself or your business with any inquiries or concerns regarding the content of this article, we are here to help. Our dedicated team of experts is readily available to address any questions you may have and provide guidance tailored to your specific needs. You can reach us conveniently by calling 01302 341 414, where our knowledgeable staff will be more than happy to assist you. Alternatively, you can fill out our online enquiry form, ensuring that we receive all the necessary details to address your concerns promptly and effectively.