The Changing Landscape of UK Employment in 2023: What You Need to Know
Introduction:
As we step into 2023, the UK employment landscape is undergoing significant transformations. From legal reforms to shifting work dynamics, several changes are set to impact both employers and employees. In this blog post, we'll explore the key employment changes that you should be aware of in 2023.
Flexible Working Rights:
In a move towards greater work-life balance, The Government has published its consultation response on “Making Flexible Working the Default”, giving its support to the Employment Relations (Flexible Working) Bill. If the bill passes through parliament employees in the UK now have enhanced rights to request flexible working arrangements. The new legislation allows eligible employees to request flexible working from day one of their employment. This change grants individuals the opportunity to adapt their work schedules to better suit personal circumstances and responsibilities outside of work.
IR35 Rules:
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.
National Minimum Wage and National Living Wage Increase:
To address the ongoing issue of low pay, the UK government has increased the National Minimum Wage and National Living Wage rates. Workers aged 23 and over now qualify for the National Living Wage, which has been raised to £10.42 per hour (a 9.7% increase). Other age brackets have also seen substantial increases, ensuring a fairer wage for workers across various sectors.
Gender Pay Gap Reporting:
Efforts to address the gender pay gap continue in 2023. Employers with 250 or more employees are now required to report their gender pay gap figures annually. This transparency aims to highlight any disparities and encourage employers to take proactive steps towards gender equality in the workplace. Such reporting enables employees and the public to make informed decisions regarding companies' commitment to fair pay practices.
You need to base the gender pay gap calculation on your payroll data taken on the below dates.
31st March for most public authority employers.
5th April for private, voluntary and all other public authority employers.
You must complete your gender pay gap report, every year if you employ 250 or more employees on the date of the snapshot.
Conclusion:
The employment landscape in the UK is constantly evolving, and 2023 brings several important changes. From increased flexibility in working arrangements to improved rights for bereaved parents, these changes reflect a desire for fairer, more compassionate workplaces. Employers and employees alike must stay informed and adapt to these evolving regulations. By embracing these changes, we can work towards fostering inclusive, supportive, and equitable work environments that benefit everyone involved.
If you require further information about anything covered in this blog, please contact Liberty Law Solicitors today.