Employment: What to look out for in 2023

Key legislation

The EU Law (Revocation and Reform) Bill is currently at the committee stage where it will be examined in detail. Before being approved as law, it will enter the report and third reading stage. If effected, it will automatically repeal any retained EU law and will enable the Government, via Parliament to amend more easily, repeal and replace retained EU Law. Such law will expire on 31 December 2023, unless specific legislation is introduced to retain it, or a government minister extends the deemed repeal date. The Bill will also include a sunset date by which all remaining retained EU Law will either be repealed, or assimilated into UK domestic law.

Affected employment law would include the Working Time Regulations 1998, the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000, the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, and the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) and the Agency Workers Regulations 2010.

Other legislation

The Neonatal Care (Leave and Pay) Bill, Employment (Allocation of Tips) Bill, Carer's Leave Bill and The Protection from Redundancy (Pregnancy and Family Leave) Bill are all due to enter the report stage in early 2023, where the bills will be separately examined in detail and the House of Lords will vote on any amendments. This will likely be followed by a third reading and if there are no amendments, each bill is expected to be sent to the monarch for royal assent to become a new law.

Key cases

Further decisions around employment status may be concluded in 2023, namely in relation to the case being brought by 1,600 Bolt drivers in the UK, following the decision laid down in Uber BV and others (Appellants) v Aslam and others (Respondents) [2021] UKSC 5. This will add further weight to gig economy workers looking to have their status as workers recognised.

Early 2023 will likely also see the Supreme Court deliver an important judgment in Chief Constable of the Police Service of Northern Ireland and another v Agnew and others, regarding historic holiday pay claims. Amongst other issues, the Supreme Court will determine whether historic holiday pay claims can be brought where there are gaps of three months or more in a series of underpayments. Holiday pay has been a hot topic recently and has featured in our bulletins with the case of Harpur Trust v Brazel.

Rate changes

Look out in Spring 2023 for updated announcements.

There will be updated rates and coming into force of the following:

  • Statutory cap on a weeks' pay for the purposes of calculating the basic award and statutory redundancy pay.
  • Vento Bands
  • Health and Social Care Levy
  • Gender pay gap reporting deadlines for organisations with 250 or more employees.