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Q&A Video Series: Employment Law Updates with Jonothan Scollen from Howarths
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Posted in Employers, Employment Legislation on Apr 24, 2023 by Keeley Edge
This month for our Q&A video interview, we spoke to Jonathan Scollen from Howarths, and we asked him some questions about the current changes in employment law and what we need to know as employers.
What key changes in employment law have there been recently?
April is the time of year when there are changes. The key changes for April 2023 related to pay increases and tribunal award limits.
Pay increases
- Statutory pay for family related leave has increased from £156.66 to 172.48 per week.
- Statutory sick pay has increased from £99.35 to £109.40 per week.
- National living wage for a 23 year-old has increased from £9.50 to £10.42 per hour.
All age brackets have gone up and you can find them on www.gov.uk
Employment Tribunal changes and injury to feelings awards
There are 3 bands for injury to feelings, lower, middle and upper, all have been increased.
Lower: £1,100 to £11,200
Middle: £11,200 to £33,700
Upper: £33,700 to £56,200
In exceptional cases awards could be made for more than 56,200
General tribunal awards
The maximum award for unfair dismissal has been increased from £93,878 to £105,707, however it should be noted that this limit does not apply alongside discrimination.
Statutory weekly pay
When calculating payments for both unfair dismissal and redundancy, the statutory limit on a week’s pay has increased from £571 to £643.
What do businesses need to be aware of when it comes to the living wage?
Make sure that the new rate has been applied at the right time on your payroll system.
Be very careful around making deductions from wages as there is a risk of taking people below the national living wage.
How often would you recommend that companies review their contracts of employment?
Firstly, ensure that you have contracts in place. Then at least annually, review the handbook and policies – this will make sure that you keep up to date with the fast-moving changes in this area. It’s really important to keep an eye out for the changes that might come along. There are judgements made sporadically which can catch you out if you are unaware.
What are your top 3 tips when it comes employment law?
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Ensure that you have in place up-to-date contracts, policies and a handbook. This will save you significant amounts of management time, help avoid issues from arising, and reduce the risk of any claims
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Once you have contracts, policies and a handbook – don’t put them on the shelf! It’s not a tick box exercise, make sure that everyone knows what’s in them, how to use them, and where to find them. The best thing you can do is train your people managers on the contents of the policies and handbooks. Otherwise, HR will be a firefighting task
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When you think of employment law, be proactive rather than reactive. You will find yourself with much more time to manage the business and grow, rather than focusing on problems arising. Running your business will feel much easier. Putting these things in place from the start, rather than waiting until you think you might need them will really help as your business grows.
