With a new year, comes a new catalogue of expected developments in employment law. From highly anticipated decisions of the Supreme Court and Court of Appeal to a collection of Private Members’ Bills currently passing through Parliament, in this article we outline some of the key employment law changes to look out for in 2023.
Strikes
Amid the chaos caused by the cost-of-living crisis and inflation, and the current landscape of industrial action across a variety of services and sectors, the Strikes (Minimum Services Level) Bill has passed its 3rd reading in the House of Commons. This Bill would give government a new power to introduce minimum service levels for industrial action across six sectors including health, transport, and education. The Bill would allow an employer to serve a ‘work notice’ to a trade union, specifying which workers are required to work during strike action to ensure minimum service levels. If enacted, this legislation would also remove automatic protection from unfair dismissal for any employee who takes part in a strike contrary to a work notice.
Family Friendly changes
In recent years, we have observed a distinct shift towards a more flexible and more family-friendly working life, accelerated significantly by the coronavirus pandemic. This recognition of working individuals with care responsibilities has continued into 2023, with a multitude of potential flexible working rights, a likely extension of redundancy protection for women and new parents, and additional leave for those with care responsibilities.
Flexible working
The government has confirmed that changes will be made to the existing Flexible Working Request legal framework, by way of the Employment Relations (Flexible Working) Bill. At present, employees with 26 weeks’ service have the right to make a flexible working request. Under the new proposal, all employees will be able to request flexible working from day one of their employment. Additionally, employees will be able to make two requests in a 12-month period, rather than the current right to make one request per year.
Carers leave
The Carer’s Leave Bill passed its 3rd reading in the House of Commons on 3 February 2023 and will now pass to the House of Lords to be debated. If passed, the Bill will entitle employees with dependants who have a long-term care need to a ‘day one’ right to 5 days’ unpaid leave each year to facilitate care. The Bill will also provide protections from detriment or dismissal due to exercising this right to take time off.
Protection from redundancy for women and new parents
The Protection from Redundancy (Pregnancy and Family Leave) Bill is also expected to continue progressing, having also now entered the House of Lords. This Bill will extend the period of protection from redundancy from the date an employee first advises the employer of her pregnancy until 6 months after the end of maternity leave. This extended protected period will also apply to adoption leave and shared parental leave. This plugs a gap in what is a vulnerable time for women and new parents returning to work following a period of leave.
Neonatal Care
The government’s commitment to supporting families is further enshrined in the Neonatal Care (Leave and Pay) Bill, which aims to introduce a new statutory right to leave and pay for up to 12 weeks for employees with children who have spent at least a week in neonatal care. The right to neonatal leave will be a ‘day one right’, and employees with 26 weeks’ service will be entitled to statutory neonatal pay. Much like other family-related leave, parents who qualify for neonatal leave will have the same protections from detriment or discrimination arising from taking, or seeking to take, such leave.
Money, money, money
There are a host of financial changes afoot that employers need to be aware of , to reflect the sharp rise in inflation and the cost-of-living crisis.
Increase to National Minimum Wage and Several Statutory Benefits
In response to rising inflation and the cost-of-living crisis, the National Living Wage, for those aged 23 and over, will be increased by 9.2% to £10.42, effective from 1 April 2023. There will also be a 10.1% increase on the rates of a range of statutory benefits applicable for 2023/2024. From 10 April 2023, statutory sick pay will increase to £109.40, and the weekly rates of statutory maternity pay and other types of family-related leave will increase to £172.48.
Changes to how employers deal with tips, gratuities, and service charges
The government has confirmed its support of the Employment (Allocation of Tips) Bill, which will require employers to pass on 100% of tips to workers with no deductions, except for tax. The Bill includes a statutory code of practice for the purpose of promoting fairness and transparency in the distribution of tips, gratuities and services charges.
Sexual Harassment
The Worker Protections (amendment to the Equality Act 2010) Bill has been supported by the government which introduces a statutory duty on employers to take appropriate steps to prevent sexual harassment of their employees in the workplace and to strengthen the law on third party liability for sexual harassment. This legislation encapsulates the government’s response to the consultation on sexual harassment in the workplace, first published in 2019
The Equality and Human Rights Commission has also been asked to re-write the Code of Practice on Harassment. This Code is likely to set out the ways in which employers can comply with their new duty to prevent harassment and protect employees from third party harassment.
Fire and rehire
In the bumpy terrain of equal pay, the Supreme Court has decided under the long running dispute between USDAW v Tesco, that USDAW have permission on appeal to challenge Tesco’s tactic of firing and rehiring staff on less-favourable terms.
A draft Statutory Code of Practice on the tricky area of dismissal and re-engagement is due to be published and consulted on with trade unions, as announced in November 2022.
Drastic changes ahead…
The Retained EU Law Bill 2022/23 purports to drastically reshape the current employment law landscape by repealing all direct and secondary EU legislation from effect in the UK from 31 December 2023, unless that law is expressly retained. Watch this space for the debate on what is/is not retained and whether the 31 December deadline is retained or pushed back.
If you are an employer and would like further guidance or support on how to prepare for any of the above proposed changes to employment law, or an individual who would like to better understand their position in relation to the upcoming developments, feel free to get in touch with the team.
Jones Chase is a specialist employment law firm based in the centre of London with an excellent track record of looking after those that we assist.
Feel free to contact us should you require further information or need any assistance. We are always happy to speak to people and point them in the right direction.
Tel: +44 (0) 203 837 9914
Email: info@joneschase.com