Employers should be aware of these changes to employment law to ensure they are prepared and understand how any reforms will affect them. We outline 8 of the most significant employment law developments for 2023 and discuss the implications of the proposed legislation:

• Statutory Pay Increases: In April 2023, new rates for Statutory Sick Pay (SSP) and Statutory Maternity, Paternity, Adoption, Shared Parental, and Parental Bereavement Pay will go into effect. SSP will increase from £99.35 per week to £109.40, and the other statutory pay rates will increase from £156.66 per week to £172.48. The lower earnings limit will remain at £123 per week. National Minimum Wage and National Living Wage rates will also increase based on age group.

• Extra Bank Holiday: In 2023, we'll have an additional bank holiday for the King's Coronation on May 8. While this bank holiday could be treated differently, it is more likely to be treated the same as other bank holidays. This means consulting your contract wording to determine whether you need to provide this day off. As an employer, you have the option to include all UK bank holidays in your employee's statutory leave entitlement.

• Flexible Working Bill: The Employment Relations (Flexible Working) Bill is currently making its way through parliament. If it becomes law, it will change the statutory right to request flexible working. Employees would no longer need to explain the impact on business operations and would be allowed to make two flexible working requests per year. If the request is not granted, the employee has the right to appeal.

• Retained EU Law (Revocation and Reform) Bill: The Retained EU Law (Revocation and Reform) Bill has passed to the committee stage. If passed, this bill will repeal any retained EU law on December 31, 2023, unless new legislation is introduced to keep it. This could impact TUPE, the right to paid annual leave, and working time regulations, and could also affect employment laws related to collective redundancy consultation and employee consultation on the transfer of undertakings.

• IR35: The IR35 rules will be extended to the private sector in April 2023. These rules determine whether a worker is an employee or self-employed for tax purposes. If a worker is considered an employee, the company that hires them must deduct tax and National Insurance contributions.

• Parental Leave: In 2023, new parental leave rights will come into effect, allowing parents to take unpaid leave to attend adoption appointments and ante-natal appointments.

• Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress) Regulations: As of December 5, 2022, these Regulations will prohibit employers from including exclusivity clauses in contracts for workers or employees who earn less than the lower earnings limit, which is currently set at £123 per week. These Regulations were implemented following a government consultation in December 2020 and aim to replicate provisions from 2015 legislation that made exclusivity clauses in zero-hour contracts unenforceable.

• Tips Law: The Employment (Allocation of Tips) Bill is set to have its third reading in the House of Commons in January 2023. If passed, this bill will entitle staff members to keep 100% of the tips they earn, and it will be unlawful for employers to withhold tips from staff. This includes any service charges added to card payments. If you manage staff or run a business in an industry that deals in tips and gratuities, it's worth keeping an eye on this bill.

It's important for employers to stay informed and stay compliant with these HR and employment law changes in 2023. If you have any questions or need assistance, call AHR Consultants on 0345 076 2288 or email [email protected]