Legal Updates for Employment – 2023

A brief summary highlighting important legislation changes that are coming into effect this year, relative to the employment industry, together with a round-up of legislation which is in the pipeline, but has not yet been finalised. We hope you find it helpful.

1. Holiday Pay

The Government has launched a consultation for calculating holiday entitlement and pay for part-year and irregular hours workers.  If implemented, it would allow employers to revert to a pro-rating holiday for part-year workers based on the 12.07% method.  The current consultation period has a closing date of 9th March 2023.

2. Changes to wage rates in 2023

As a Recognised Service Provider of the Real Living Wage we support the wage that is published by the Living Wage Foundation. For those of you who also champion the Real Living Wage, the latest rates announced in September 2022 will need to be implemented by latest 14th May 2023.  These are £10.90 across the UK and £11.95 in London.


With effect from 1st April 2023, the National Minimum Wage will rise from £9.50 to £10.42 an hour for workers aged 23 years and over.  See the full rate increases for all other categories below.

3. Increases to the statutory rates for maternity, paternity, shared parental pay, adoption and sick pay

Weekly rates for family-related leave will increase by £15.82 to £172.48 from April 2023 and the rate for Statutory Sick Pay will increase by £10.05 to £109.40 per week from April 2023.


The Worker Protection Bill includes a new duty on employers to take reasonable steps to prevent sexual harassment of their employees.

5.Data Protection

The government has announced its plans to replace the UK GDPR with a British data protection system in the form of a Data Protection & Digital Information Bill.  The ICO is currently taking part in consultations discussing ways to monitor workers and how to process workers’ health data.  The aim is to create a one-stop hub for all answers to data protection questions. 

Final details of the Bill are yet to be finalised by the government, but an update is expected in 2023.

6. Change to Dismissals

A new Statutory Code on Dismissal and Re-Engagement is due to be published.  Still in draft form, but currently within a consultation period until 18th April 2023.

The code will set out employers’ responsibilities when seeking to change contractual terms and conditions.

7. Extra Bank holiday

To celebrate the King’s Coronation, there is an additional bank holiday in 2023 on Monday 8th May, bringing the total number of bank holidays to 9. In recognition of the King’s concern for strengthening local communities, the public will be encouraged to join the Big Help Out initiative.

Jubilee Jan22

8. The much-anticipated Employment Bill has shifted and now parts of the proposed Bill are found in Private Members' Bills which are supported by the Government. They include:

  • Neonatal Bill

A new right to allow parents to have paid time off, if their baby requires neonatal care

  • Carer’s Leave Bill

           Entitles employees who are providing or arranging care to a week’s unpaid leave per year             and protection against dismissal.

  • Pregnancy & Family Bill

Extends the rights of protection from redundancy for women during or after a protected period of pregnancy.

  • Miscarriage Leave Bill

It’s expected that the Bill providing a right to paid bereavement leave and paid time off for fertility treatment will progress.

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