Employment Law updates April 2023
Statutory increases in pay effective April, 2023
- Workers aged 23 & over qualify for the National Living Wage (NLW) = £10.42
- Workers aged 21 – 22 = £10.18
- Development rate for workers aged 18 – 20 = £7.49
- Young workers rate for workers aged 16 – 17 = £5.28
- Apprentices under 19 & in 1st year of apprenticeship = £5.28
The Employment Rights (Increase of Limits) Order 2023 provides the increased upper limits effective 6th April 2023 which employment tribunals utilise.
Each year these limits are reviewed and updated in line with the retail prices index (RPI) & this year, there has been a 12.6% increase
Increases are stipulated below:-
• Statutory guarantee pay paid during a period of lay-offs/ short-time working by the employer increasing to £35 (maximum of 5 days in a 3 month period = £175)
• limit on a week’s pay for calculating redundancy and the unfair dismissal basic award increasing from £571 to £643
• increase to a week’s pay resulting in the maximum basic award for statutory redundancy payment and unfair dismissal from £16,320 to £19,290
• maximum compensatory award for unfair dismissal increased to £105,707. or a year’s pay, whichever is lower.
The new limits relating to dismissal compensation will apply for any dismissals where the effective date of termination is on, or after, the 6 April 2023.
Please note, any dismissals arising prior to this date (up to an including 5th April, 2023) will have the previous compensation limits applied to any respective award.
There are unlimited compensation awards for discrimination, therefore, dismissals where discrimination applies under the Equality Act 2010 could lead to a higher financial awards. It is important to note Unlimited compensatory awards also relate to Whistleblowing claims.
Given there is no financial barrier to employees or ex-employees wishing to make a tribunal claim, and the above figures shows that pay outs for claims are increasing.
The annual increase to tribunal awards, along with other economic factors such as reputational damage, and increases to the cost of living (which may encourage employees who would not have previously contemplated a claim, to do so), means it is crucial to attain expert advise and limit the risk of litigation where possible.
With regards to dismissals, this means they will need to ensure they have a fair reason to dismiss, are following a fair procedure and are acting reasonably in all the circumstances.
ELHR – Employment Lawyers & HR Consultants are able to expertly assess if your company is compliant – please call us now on 0116 326 1636.
ELHR Ltd. are Employment Lawyers & Human Resources Consultants. We’re experts who can help you to keep up to date with legislative changes, apply statute and the latest case law precedents to your business. We limit the risk of litigation & help you & your business with best practice to ensure you gain the best you can from your team.
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For employees & workers, we undertake a merits assessment to evaluate whether they are likely to succeed in a claim against your employer. ELHR Ltd. can evaluate whether there is a reasonable prospect of success.
We pride ourselves in being ethical and honest, in our approach.
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What should companies be doing?
Being flexible as an employer is paramount given the unprecedented changes we’ve seen arising through COVID-19 pandemic circumstances. Hybrid working, culture, a good working environment, benefits package (not necessarily financial) speaks volumes. Therefore, if issues arise at work, don’t let them get out of hand. Call us for an initial free consultation, we’d be happy to assist you in any issues you’re facing.
ELHR Ltd. are here to help and can assist in pointing you in the right direction.
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From onboarding and recruitment strategy that aligns with your company mission statement and values, through to helping you grow and retain staff if they’re aligned with your business.
We provide bespoke employment contracts, progressive HR Polices and Procedure supporting your business grow. Helping you to retain your staff with Hybrid working and flexibility through uncertain times.
Advising on continuous employment law legislative changes, restrictive covenants protecting your business, and performance management, our goal is to create a culture and atmosphere that facilitates successful recruitment, growth and retention of staff due to high morale, health and wellbeing, team building on the lessons learned through the pandemic.
Our bespoke Human Resources Consultancy is not formulated as a package. We listen, understand and use our expertise to create a pathway for the companies we are proud to work with.
At ELHR, we work with you to create a culture that limits the risk of litigation through staff engagement surveys, change management during uncertain times, and succession planning. Looking to prepare for problems in order to avoid running into them.
We can provide you with a continual advice on retainer, or set time frames re projects, we have the skills and capacity to make a real difference in providing flexibility, protection and added value during this unprecedented journey.
Call on 0116 326 1636 and we can help with any employment law, or HR issues you’re facing as an employee, or employer.
