Upcoming Changes to Employment Law rates and limits

Employment bill

April often signals the start of changes to Employment Law rates and limits. Below is a round-up of some of the current changes due to take effect:-

  1. National Minimum Wage / National Living Wage

The new rates from 1 April 2023 are:-

  • Age 23 or over £10.42 (was £9.50);
  • Age 21-22 £10.18 (was £9.18);
  • Age 18-20 £7.49 (was £6.83);
  • Age 16-17 £57.28 (was £4.81)
  • Apprentice £5.28 (was £4.81)
  • Accommodation offset amount £9.10 (was £8.70)
  1. Maternity, Paternity and Adoption

The new rates from 2 April 2023 are:-

  • Statutory Maternity Pay – £172.48 each week (was £156.66) – maximum period of 33 weeks
  • Statutory Paternity Pay – £172.48 each week (was £156.66) – two weeks ordinary paternity pay
  • Statutory Adoption Pay – £172.48 each week (was £156.66) – maximum period of 33 weeks
  1. Sick Pay

The new rate from 6 April 2023 will be £109.40 each week (was £99.35).

  1. Statutory Redundancy Payment

Employees who are being made redundant and have two or more years continuous service are entitled to a statutory redundancy payment. The exact amount is calculated based on the employees age, length of service and gross weekly pay, subject to caps. With the caps in mind, the maximum statutory redundancy payment will increase to £17,130 (Was £16,320) from 6 April 2023.

  1. Unfair Dismissal Awards

Where a Tribunal finds an employee has been unfairly dismissed, they will be entitled to a basic award. The basic award is calculated in the same way as the statutory redundancy payment and will therefore increase to a maximum of £17,130 with effect from 1 April 2023.

In the vast amount of unfair dismissal claims, any award will be subject to the statutory cap which is the lower of either (a) 52 weeks’ pay; or (ii) the numerical cap. With effect from 6 April 2023, the numerical cap will increase to £105,707 (was £93,878).

  1. Injury to Feelings

The Court of Appeal in Vento v Chef Constable of West Yorkshire Police (No 2) [2003 IRLR 102, set guidelines for the level of compensation to be awarded in claims for injury to feelings. The new bands with effect from 6 April 2023 are:-

  • Lower Band (less serious cases) £1,100 – £11,200 (£was £990 – £9,900)
  • Middle Band (for those cases which do not fall within the Upper Band) £11,200 – £33,700 (was £9,900 – £29,600)
  • Upper Band (for the most serious cases) £33,700 – £56,200 (was £29,600 – £49,300)
  • Exceptional Cases over £56,200 (was over £49,300)

How we can help?

Our experts can advise you on all aspects of employment law which include; employment contracts, staff handbooks, grievance and disciplinary procedures, redundancy consultations and procedures and should matters get to an Employment Tribunal, we will be with you every step of the way to ensure you achieve the best possible outcome.

For any further information on this article please contact Rachael Frankland on 0161 694 4155 or email –rfrankland@bromleys.co.uk.