HR Consultancy Corner: looking ahead in 2023
HR 101 for 2023 – deadline and changes to be aware of
We’ve looked at the year ahead and detail below a helpful timetable of what HR changes are coming up this year that you need to be aware of.
- Publish gender pay gap report
- Comply with national minimum wage increases
- Increase statutory family-related pay and sick pay
- Update your statutory redundancy pay calculations
- Prepare for additional bank holiday entitlement for the King’s coronation
- What else is on the horizon?
If you would like to discuss any of these topics please do get in touch.
If you have more than 250 staff you will need to publish your gender pay gap figures.
If your organisation’s staff headcount has increased to over 250 in the past year this might be the first time you will be required to carry out the analysis and reporting. Do get in touch if you would like our assistance.
The next gender pay gap reporting deadline is 30 March 2023 for public-sector employers and 4 April 2023 for private-sector and voluntary-sector employers. You must publish the up-to-date report on your website, as well as on the gender pay gap reporting portal on the GOV.UK website.
You can choose to provide a narrative around any gender pay gap, including providing an explanation for your pay gap and setting out what steps you are taking to reduce the gap.
The rates for the national minimum wage will increase on 1 April 2023. Detailed below are the details:
|Old hourly rate||New hourly rate||Age|
|£9.50||£10.42||23 and over|
|£9.48||£10.18||21 – 22|
|£6.83||£7.49||18 – 20|
|£4.81||£5.28||16 – 17|
|£4.81||£5.28||Apprentices under 19, or over 19 and in the first year of the apprenticeship|
Once you have checked your pay rates against these forthcoming minimum wage rates you must, where necessary, increase remuneration for the first pay reference period beginning on or after 1 April 2023. You should write to each worker to confirm the increase. If you would like assistance with drafting letters, please do get in touch.
The rate of statutory maternity, adoption, paternity, shared parental and parental bereavement pay will increase to £172.48, (increased by 10% from £156.66). The increase normally takes effect on the first Sunday in April, so this year it will apply from 2 April.
The rate for statutory sick pay will also rise on 6 April 2023. The new rate will be £109.40, increased from £99.35). Make sure you write to any
It is a good time to review your policies and procedures relating to statutory maternity, adoption, paternity, shared parental leave and parental bereavement pay, particularly if they mention the rates. If you do not have any of these policy documents do get in touch if you would like our assistance in preparing any of them for you.
New limits on employment statutory redundancy pay will come into force on 6 April 2023. The current weekly maximum amount is £571 (from 6 April 2022). The new weekly maximum amount should be published in February so watch this space. Any redundancy dismissals that take effect on or after 6 April 2023 should be made on the basis of the new maximum amount.
If you are considering re-structuring or downsizing and proposing to remove job roles, we can help you navigate through the relevant legal processes. Remember by law, you must hold collective consultation where all of the following apply:
- you’re planning 20 or more redundancies (dismissals)
- the redundancies are in one establishment – not necessarily in your organisation as a whole, which may be much larger
- you plan to make the redundancies within 90 days
Like the arrangements for the Platinum Jubilee in 2022, the Government has announced an additional bank holiday to celebrate the King’s coronation. This will fall on Monday 8 May 2023 and means that there will be three bank holidays in this month.
As was the case with the extra bank holiday last year, you need to look at how you will approach the additional bank holiday, (again determined to some extent by the wording in your employees’ contracts of employment). As a reminder:
- Where the contract entitles employees to take leave on “all bank and public holidays”, you will be required to grant the extra day as leave.
- Even if you are not contractually obliged to grant the extra day as leave, you may choose to do so as a goodwill gesture to employees.
The Government has previously announced a number of other employment law developments, (but without setting out a timetable for their introduction).
The following proposals are being taken forward through Private Members’ Bills, with Government backing (this means that it is likely, but not certain, that they will become legislation in 2023):
- changes to the right to request flexible working procedure;
- the introduction of carers’ leave;
- the introduction of neonatal care leave and pay;
- extended redundancy protections during pregnancy and maternity leave;
- the introduction of liability for third-party harassment; and
- new rules to ensure that tips are passed to workers in full.
The Government has also separately announced the following developments:
- the introduction of minimum service levels during strikes in key sectors;
- reforms to the requirement to produce modern slavery statements;
- reform of the UK data protection regime;
- the introduction of a statutory code of practice on changing contracts of employment, including through “fire and rehire”;
- amendments to the rules on settlement agreements; and
- new provisions to give workers the right to request a more predictable and stable contractual working pattern.
It remains to be seen which of these proposals will be taken forward in 2023.
Please look out for future Employment Matters articles where we will update you on any developments.