GB CONSULTATON: PANEL COMPOSITION IN EMPLOYMENT TRIBUNALS & EMPLOYMENT APPEAL TRIBUNAL
Senior President of Tribunals has launched the above consultation proposing to change who can hear Tribunal cases in an effort to make the process more accessible and efficient.
The Consultation – panel composition in the Employment Tribunals and the Employment Appeal Tribunal states that including non-legal members on panels can affect the length of time involved or extend the time taken to make a decision or judgment.
It notes that listing hearings on dates convenient for three members of panel is also more difficult than where a judge can sit alone.
The Consultation seeks responses to 8 Questions as follows:
1. Do you agree that cases in the ETs which are currently heard by a panel should instead be heard by a judge alone by default?
2. Do you agree that unfair dismissal claims in the ETs should continue to be heard by a judge alone by default?
3. Do you agree that other kinds of claims in the ETs which are currently heard by a judge alone by default should continue to be?
4. Do you agree that cases in the EAT should continue to be heard by a judge alone by default?
5. Do you agree that there should be a power to direct that a case be heard by a panel of two judges, to deal with particularly complex cases or where other circumstances justify it?
6. Do you agree that decisions other than at substantive hearings should be made by a judge alone in all cases?
7. In cases which are judge alone by default, how should the discretion to sit with a panel be guided and exercised?
8. Do you have any other comments?
This GB consultation is open until 27 March 2023 and we will keep Members appraised of any developments. It will be interesting to see if a similar approach is considered for Northern Ireland. However, the Northern Ireland President is about to launch his judicial mediation process in an effort to make the process more efficient. Therefore, if this were to be considered for Northern Ireland it may not be this year.
MENOPAUSE & THE WORKPLACE: Government Response to Committee’s First Report of Session 2022–2023 (published 24 January 2023)
The Government has printed this response to the recommendations put forward by the Women and Equalities Committee’s report entitled Menopause and the workplace: Government Response to the Committee’s First Report of Session 2022–2023
Of the 12 recommendations made in the report, the government has accepted/partially accepted 7 and rejected 5.
Chapter Two of the report covers ‘Menopause in the workplace’ and contains 6 proposals
Of those recommendations accepted include:
Recommendation 6: appointing a Menopause Employment Champion to drive forward work with employers on menopause workplace issues and to spearhead the proposed collaborative employer-led campaign as outlined in the independent report.
Recommendation 9: Making flexible working a ‘day one’ right and removing the 26 week service; the government is supporting the Employment Relations (Flexible Working) Bill, currently going through Parliament, which would deliver these changes.
Recommendation 10: Strengthened guidance that will give a set of clear and simple ‘principles’ that employers would be expected to apply, to support disabled people and those with long term health conditions in the work environment. The guidance could also apply where workers are experiencing symptoms such as those that occur in the menopause. It will be published by the Health and Safety Executive in Autumn 2022.
Of those recommendations not accepted include:
Recommendation 11: introducing so called ‘dual discrimination’ i.e., allowing claims to be brought on combined grounds of sex and age.
Recommendation 12: making menopause a protected characteristic itself under the discrimination laws.
NOTE:
The report only covers the approach and actions in England. It notes that health is a devolved matter, administrations in Northern Ireland, Scotland and Wales will determine their own policies and approach to menopause.
It will be interesting to see the direction of the devolved nations following the report.
GB Strikes (Minimum Service Levels) Bill
The Government has just published the controversial Strikes (Minimum Service Levels) Bill In the Government’s Press Release of 10 January 2023 it states that the new laws will allow government to set minimum levels of service which must be met during strikes to ensure the safety of the public and their access to public services.
This Bill is much wider than the previous Transport Strikes (Minimum Service Level) Bill. However it only extends to England and Wales and Scotland not Northern Ireland.
It gives the Secretary of State (SOS) very wide powers to specify minimum service levels in the following categories:
(a) health services;
(b) fire and rescue services;
(c) education services;
(d) transport services;
(e) decommissioning of nuclear installations and management of radioactive waste and spent fuel;
(f) border security.
The Press release stated that the government will first consult on minimum service levels for fire, ambulance, and rail services. This is in recognition the severe disruption that the public faces when these services are impacted by strikes, especially the immediate risk to public safety when blue light services are disrupted.
However, in the other sectors such as education, other transport services, border security, other health services and nuclear decommissioning it is anticipated that these levels will in the first instance be set by agreement between the employer.
There the government expects parties in these sectors to reach a sensible and voluntary agreement between each other on delivering a reasonable level of service when there is strike action. However, the Bill gives the government the power to step in and set minimum service levels should that become necessary.
Where minimum service applies, employer may give a “Work Notice” to a trade union.
Work Notice must:
- identify persons required to work during the strike to secure that minimum service levels are provided.
- specify the work to be carried out by them to ensure minimum service levels provided.
- not identify more persons than are reasonably necessary.
Employer must not have regard to whether person is / is not trade union member when identifying them to work
Before giving notice employer must:
- consult union about number of persons and work to be done
- have regard to any views expressed by unions
There will be no protection if union fails to take reasonable steps for all identified in work notice to work. The remedy it appears is for employer to sue the union for damages (equivalent to loss sustained by the employer if the union had taken the reasonable steps.
Employees protection against being automatically dismissed will only apply if employee has not been in breach of Work Notice.
COMMENTARY
The Bill is very wide reaching and lacking in any detail about how the SoS will determine what is the threshold for the ‘Minimum level.’ It has been heavily criticised with the Regulatory Policy Committee issuing a statement on the lack of an impact assessment for the Strikes (Minimum Service Levels) Bill
There was some speculation that this was to maintain safety but no mention of safety in the Bill. Arguably each of the categories could be defined very widely and encompass both private and public sectors.
The Commons Library Research Paper on the Strike Bill is a very helpful document setting out the factual and legal background, comparing the UK to other jurisdiction and summarising the commentary on it.
We can certainly foresee this Bill as being challenged as an infringement of the right to strike and we do not foresee any similar measures being coming in in Northern Ireland.
CONSULTATION ON HOLIDAY PAY (12 January 2023)
The Government has launched a Consultation on ‘Calculating holiday entitlement for part-year and irregular hours workers.’
This is following on from the Supreme Court case of Harpur Trust v Brazel in July 2022 which held that permanent part year workers, i.e. workers who did not work a full year but who had permanent contract, are entitled to the full 5.6 weeks of holiday leave rather than a pro rata entitlement based on the amount of work they carried out.
The result of this judgement however meant that workers who work part year could receive a disproportionally high entitlement to annual leave, compared to the amount of time they worked. One scenario relied on by Harpur Trust in the case, was where a worker, on a permanent contract, who worked one week in the year, earning £1000, would be entitled to 5.6 weeks paid leave equating to £5600 holiday pay.
The Consultation proposes to introduce an entitlement reference period of 52 weeks to ensure pay and entitlement is directly proportionate to time spent working. This reference period would be a fixed period, where at the beginning of the holiday leave year the works entitlement would be calculated based on the previous 52 weeks.
The Government is also proposing that the weeks in which workers perform no work are included in the holiday pay reference period. This would cause that pay and entitlement reference periods to diverge slightly. Members will recall that for holiday pay calculation purposes, weeks where a worker does not complete any work are excluded. The Government believes including weeks where no work is completed would more closely align holiday entitlement with the work actually completed.
Whilst this will be very welcome by businesses it is important for business in Northern Ireland to remember:
“Any legislative changes because of this consultation would extend to workers in Great Britain. Employment law is reserved to Westminster for Scotland and Wales through the Employment Rights Act 1996. Employment law is devolved to Northern Ireland.”
However if the Executive was restored it could be one taken forward here.
The deadline for responding is 9 March 2023.
RECAP ON LEGISLATIVE CHANGES IN 2022 AFFECTING HR PRACTITIONERS AND WHAT NEW LAWS MAY BE ON THE HORIZON FOR 2023
We previously set out what we considered to be the big cases and themes of 2022. We have set out below the legislative and policy changes in 2022 and look forward as to what other changes may are anticipated for the year ahead.
NORTHERN IRELAND ONLY:
- Statutory Parental Bereavement Leave & Pay:
The right to take statutory parental bereavement leave and receive statutory parental bereavement pay came into force for births/stillbirths on or after 6 April 2022. As enacted, they currently replicate those in place in GB. However, by 6 April 2026 NI will differ to GB in that here we will:
- Extend the rights to those that also suffer miscarriage (defined as under 24 weeks);
- Remove the 26 week’s service requirement for pay, meaning that statutory parental bereavement pay will also be a Day 1 Right.
- Domestic Abuse and Safe Leave:
This Bill received Royal Assent on 12 May 2022 to the surprise of many. However, it was passed and will become law at some point in the future, but no date or indicative date has been provided for it to come into force.
When enacted it will entitle all employees and workers, subjected to domestic abuse, up to 10 days paid leave each year (called ‘Safe Leave’) as Day 1 Right.
Further details can be found at Domestic Abuse (Safe Leave) Act (Northern Ireland) 2022
It will be a significant new right and we will keep Members updated with its progresses.
- Zero Hour & Banded Weekly Work:
This is currently only at consideration stage in Northern Ireland following a Private Members Bill.
It proposes to introduce a hybrid of the provisions currently in place in Republic of Ireland where employees whose contracted hours do not reflect the reality of the hours they habitually work have a right to request to be placed in a banded hours which is more reflective of their working hours. There are different Bands starting from Band A: 3- 6 hours, Band B: 6 – 11 hours etc. There are also proposals around zero-hour workers which are in currently in place in Great Britain.
Due to insufficient Executive time under the last mandate, it has been rolled forward to be considered in the next mandate. Therefore, this will be considered if and when the Executive is restored. Further details can be found at Employment (Zero Hours Workers and Banded Weekly Working Hours) Bill
- Judicial Mediation:
The President of OITFET, Mr Noel Kelly heralds the introduction for judicial mediation as the roadmap for industrial tribunals in Northern Ireland, with Judicial training on the process due to be completed by the end of January 2023. It is intended that from April 2023, appropriate cases will be proposed for mediation with the parties involved asked if they wish to engage in the process as an alternative to adjudication following a Tribunal Hearing. It is expected that initially 30 cases will be selected. Judicial Mediation is currently in place in Great Britain and is considered to be a success amongst many.
ALL UNITED KINGDOM
- Changes to Right to Work Checks:
Several significant changes occurred last year which we kept Members updated about. On 30 September 2022, the temporary adjustments to the right to work checks ended. These had been put in place during covid to avoid business have to physically meet candidates. On 1 October 2022, the new system allowing employers to use IDSP (Identity Service Provider) to do digital right to work checks was introduced. The Home Office also updated its Right to work checks: an employer’s guide explaining the employer’s duties.
We will be hosting a free webinar on the right to work changes on 7 February 2023. Further details of the webinar and how to register will be sent to Members in due course.
- Fit Notes
On 6 April 2022, Digital Fit Notes were introduced across the UK – another legacy flowing from pandemic.
On 1 July 2022, as part of the government’s effort to reduce pressure on GP’s, the categories of persons who can sign Fit Notes was extended to include Health Care Professionals. With this the Government also updated Fit note Guidance for doctors, nurses, occupational therapists, pharmacists, physiotherapists, employers, and patients using fit notes (statements of fitness for work).
Anecdotally, we understand that for many Members, they have not seen much uptake from the new categories of persons signing Fit Notes.
GREAT BRITAIN ONLY
- Allowing Agency Workers to Replace Striking Workers
Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022 came into force on 21 July 2022. The purpose of this legislation was to repeal the provisions that made it a criminal offence for agency workers to be used to replace striking workers. Unsurprisingly, a number of the trade unions have jointly mounted a legal challenge on the legality of the Regulations vis a vis the workers’ right to strike. This is currently being pursued by way of judicial review in the High Court. See High Court agrees to hear Judicial Review
It is important to note that the position remains unchanged in Northern Ireland and that agency workers cannot be used to replace striking workers. We believe that position is unlikely to change even if the Executive was restored.
- Transport Strikes (Minimum Service Levels) Bill
This is a Bill to ensure minimum service levels are maintained on transport services during industrial action.
On 5 January 2023, the Government has further announced that there will be new legislation to guarantee minimum levels of safety in critical sectors, which has again met with much criticism from the unions. The critical sectors could include fire, ambulance, rail services, health services, education, nuclear decommissioning, other transport services and border security.
The government will consult on the adequate level of coverage for these sectors, recognising that disruption to blue light services puts lives at immediate risk.
See Government announces new legislation to guarantee minimum levels of safety in critical sectors
2023: GB PRIVATE MEMBER BILLS BACKED BY GOVERNMENT
There was an obvious lack of any mention of the long-promised Employment Bill in the Queen’s Speech in 2022. Instead, the Government has chosen to support a number of Private Member Bills as a way of ushering in change. There are currently five Bills receiving Government support which will become law in Great Britain. Whilst employment law is devolved, if the Executive was restored these areas may well be discussed here. Indeed, campaigners have long been asking for Carer’s rights.
This provides a Day 1 right for eligible employees to take 1 week of unpaid leave a year.
This provides a Day 1 right allowing employees to make a request for flexible working to include a variety of working arrangements (e.g. compressed hours annualised hour, staggered hours) as well as the traditional form of flexible work. It also will permit employees to put in up to 2 request each 12 moths. If business cannot accommodate the request, then the business must also consider if they can offer an alternative option rather than simply a blanket refusal.
Under this new Bill, the period of protection from redundancy would be extended, to protect expectant employees from the moment they inform their employer of their pregnancy until 18 months after the birth.
This provides qualifying employees with Day 1 Right to up to 12 weeks additional neonatal care leave and pay. It will apply to parents of new-borns admitted to hospital up to the age of 28 days and who have a continuous stay in hospital of seven full days or more. It is intended that the leave will be in addition to the other parental leave entitlements and could be taken within at least a 68-week window following their child’s birth.
This Bill would reinstate the similar, but previously repealed, liabilities for employers if an employee was sexually harassed by third parties (such as customers or clients) by placing an obligation that the employer must take all reasonable steps to prevent the third party from doing so. Third party sexual harassment was not repealed in Northern Ireland but is based on the employer being aware of at least two other acts before they become potentially liable for the third act. When enacted in GB, there will be no need for the employer to be aware of any previous incidents before it can potentially become liable for the third incident.
2023: ALL UK
Retained Eu Law (Revocation and Reform) Bill
This Bill has the potential to make seismic changes to laws with devolved nations deciding what should be retained. Under the Bill, unless steps are taken to retain the devolved EU law and codify it into existing laws, it will be repealed by 31 December 2023 (the sunset deadline). It was reported in early January 2023 that the Prime Minister Rishi Sunak is intent to proceed with that sunset clause deadline of 31 December 2023. This is so despite many government officials and lawyers protesting that it will create real gaps, uncertainly and very poor law.
Northern Ireland is in an even more precarious position that the other devolved Nations given that our Executive is not currently functioning and there are no imminent signs of that changing.
Sir Jonathan Jones, the former head of the government legal department, said that the government setting itself an arbitrary deadline, leaving a needlessly short space of time to review such a vast quantity of legislation, was a “terrible way to make law”.
We will be watching development on this very closely and will keep members updated with any developments.
COURT OF APPEAL DISMISSES APPEAL ABOUT SERIOUS & IMMINENT DANGER IN WORKPLACE (20 December 2022)
In May 2022, the Employment Appeal Tribunal in Great Britain held that dismissal of Mr Rodgers for leaving his workplace (Leeds Laser) and refusing to return because of Covid-19-related concerns was not an automatically unfair dismissal.
Mr Rodgers appealed to the Court of Appeal (CA) and his case was heard on 4 November 2022 with the Judgment being handed down shortly before the Christmas recess, on 20 December 2022. To the relief of many businesses the Court of Appeal dismissed his appeal. The case is noteworthy not least as it is the first covid related case at Court of Appeal level.
RECAP OF CASE
This case first attracted attention as it considered what constituted a serious & imminent danger in the workplace that the employee could not reasonably have been expected to avert.
In circumstances of a serious & imminent danger in the workplace that the employee could not reasonably have been expected to avert, any dismissal of employee for leaving, proposing to leave, or refusing to return to, the workplace is automatically unfair under section 100 (d) of Employment Rights Act 1996; the equivalent legislation in Northern Ireland is Article 132 (d) Employment Rights Order (Northern Ireland) 1996.
This right of automatic unfair dismissal is a Day 1 Right. In other words, employees do not need 2 years’ service (required in GB) to bring automatically unfair dismissal claims.
NB: the service requirement for unfair dismissal in Northern Ireland is 1 year.
The Tribunals had found that R had ‘general concerns’ about covid when he refused to attend the workplace.
COURT OF APPEAL (CA) GAVE SOME GENERAL GUIDANCE ON THE APPLICATION OF THIS RIGHT:
On appeal, the Court of Appeal not only determined the case but took the opportunity to give some general guidance on what amounts to serious & imminent danger in the workplace that the employee could not reasonably have been expected to avert.
Firstly, CA held ‘In circumstances of danger which the employee reasonably believed to be serious and imminent’ – can be read as requiring tribunal to decide:
- If (objectively) there was a danger and then, separately,
- If the employee reasonably believed the danger to be serious and imminent (which involves both subjective and objective elements).
Secondly, CA commented that on a literal reading of section if an employee was wrong about danger (e.g. he believed that green gas in workplace was poisonous but the green gas actually turned out to be harmless) that they would not be protected.
Whilst the EAT had declined to comment on this the CA said section should be construed purposively not literally that is it is sufficient that employee has (reasonable) belief in the existence of the danger as well as in its seriousness & imminence.
Thirdly, CA also held the section only applies where employee has left the workplace (or proposes to do or has not returned) because of the perceived danger rather than for some other reason.
Fourthly, CA rejected contention that section applies to serious and imminent danger at the workplace but also if it arose on journey to work. The CA made clear that danger must arise at the workplace – or that the employee is subject to danger as result of being at the workplace. The CA reasoned this, as if that were not the case, the question of them leaving the workplace would not arise.
However, the CA commented that 100 (1) (d) does not require the danger be exclusive to the workplace (e.g. covid was both inside and outside). All that matters is that the employee reasonably believes that there is serious & imminent danger in the workplace.
The CA also commented favourably on the measures that the employer had taken to avert the risk, which was in the very early days of the pandemic.
Full case report Darren Rodgers V Leeds Laser Cutting Limited
REVIEW OF THE BIG CASES AND THEMES OF 2022
We have reviewed some of the big cases and themes of 2022.
1. HOLIDAY PAY
Smith V Plimico Plumbers (No. 2) See Judgment here
This is the second iteration of this case – the first case ruled on the preliminary issue of status and found that the plumbers were workers despite being classified as self-employed. This time the GB Court of Appeal was asked to determine if plumbers (now accepted to be workers) who had taken holiday, but were not paid for it, were entitled to bring claims on termination for all holiday pay for leave taken, but not paid.
Harpur Trust v Brazel See Judgment here
This was a Supreme Court (SC) Judgment and therefore binding in Northern Ireland as well as rest of United Kingdom. The SC held that part year workers, with permanent contract for full year, were entitled to the full 5.6 weeks annual leave which could not be pro-rated to reflect proportion of year worked. Therefore, the accepted 12.07% formula that had been used by many was incorrect for these workers.
Chief Constable of PSNI v Agnew See Judgment here
This is our own Northern Ireland case which at first instant was determined by the now President, Mr Noel Kelly. The case was due to be heard in June 2021. However, parties applied to take it out of list to allow settlement discussions mediated by Sir Paul Girvan QC (retired judge from NI Court of Appeal). Mediation meetings were held but in March 2022 it was announced that the PSNI did not receive required authorisation from Department of Finance. So it returned and was heard by SC on 14 and 15 December 2022. It covers what does and does not amount to a 3 month gap that breaks the chain of deductions, potentially allowing holiday pay claims to go back a long time as Northern Ireland does not have the 2 year back stop currently in place in Great Britain. Agnew give birth to the concept of the ‘composite whole’ – i.e. each holiday day consists of a fraction Working Time Directive leave (20 days), Working Time Regulations leave (8 days) and; additional contractual leave (x Days)
2. TRANSGENDER & GENDER CRITICAL CASES
Forstater v CGD Europe & Others
In 2021 the Courts held that belief sex is immutable was protected philosophical belief. See 2021 Judgment here
In 2022, Ms Forstater was successful in her discrimination claim against CGD Europe in establishing that the decision not to renew her contract was an act of discrimination on ground that she had expressed gender critical views. It found that her expression of those views was appropriate and therefore the decision not to renew her contract was an act of discrimination. See 2022 Judgment here
There were other similar cases which made clear that both views (those who believe that gender is critical and cannot be change and those that believe in the ability to change gender i.e. transgender) are protected. They also emphasis the point that persons have right to hold and express those beliefs, provided they do so in way that does not discriminate, harass and/or breach justifiable internal policies.
Mackereth v Department of Work and Pensions (DWP) See Judgment here
M was Health & Disabilities Assessor for DWP & believed that sex was immutable. M refused to use transgender service users’ preferred pronouns. DWP tried to accommodate him but M resigned and brought claim. EAT found that DWP had not directly or indirectly discriminated or harassed M.
Bailey v Stonewall Equality Ltd & Garden Court Chambers Ltd See Judgment here
B is a barrister who tweeted in support of gender critical views. Barrister Chambers received complaints and tweeted they were investigating B’s tweets and subsequently found 2 of those were likely to breach Barristers’ core duties. The Tribunal held that B’s gender-critical views were protected and B had right to express those beliefs – provided she did in a way that did not discriminate, which she had not done.
3. COLLECTIVE BARGAINING AND TRADE UNION
Ineos Infrastructure Grangemouth Ltd v Jones See Judgment here
EAT held that a direct pay award to employees, where collective bargaining agreement was in place, was an unlawful inducement as collective process was not exhausted. Ineos had made an offer to union stating that it was their final one. The union (Unite) had told members about the offer, did not formally put it to them for acceptance but asked for agreement to continue discussions, which their members gave.
Mercer v Alternative Future Group Limited** See Judgment here
Court of Appeal held that protection after participating in industrial action only covers dismissal and not action short of dismissal. This case has been granted permission to appeal to the Supreme Court and therefore we would caution reliance on it, until its determined.
4. DISABILITY
Burke v Turning Point Scotland See Judgment here
Tribunal held long covid can amount to disability
Rooney v Leicester City Council See Judgment here
EAT held Menopause symptoms can amount to disability
5. EMPLOYEE STATUS
Nursing and Midwifery Council v Somerville** See Judgment here
S was Panel Member on NMC’s Fitness to Practice Committee. NMC had no obligation to offer S hearing dates, S no obligation to accept any offered. Court of Appeal held that when considering worker status there is no need to establish an irreducible minimum of obligation. In other words, there is no need to find obligation to offer or accept work but simply need to find personal service and that the person is not providing services as a business.
**Permission granted to appeal to the SC.**
The Department of Work and Pensions has now published details of the Benefit rates that will apply from 10 April 2023.
These were announced in a Written Statement to Parliament by Mel Stride, Secretary of State for Work and Pensions on 17 November 2022
The Secretary stated these increases are in line with the Consumer Prices Index (CPI) for the year to September 2022. This means that they will increase by 10.1% from 10 April 2023.
The increases include to:
The following benefits will all increase from £156.66 to £172.48 per week
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Adoption Pay
- Statutory Shared Parental Pay
- Statutory Parental Bereavement Pay
- Maternity Allowance
Statutory Sick Pay will increase from £99.35 to £109.40 per week
25th November 2022
On 16 November 2022, the Office of National Statistics confirmed that inflation rose to 11.1% (described as ‘the enemy’ by Prime Minister). This was followed by the Chancellor stating, in his Autumn Statement on 17 November 2022, that the UK is officially in recession.
Everyone has been waiting on this Autumn Statement. Despite wage rises of an average of 5.7% (which are rising at their fastest rate in more than 20 years), they still lag behind the soaring cost of living. Therefore, when adjusted for rising prices, wages fell by 2.7%.
This Autumn Statement comes following the resignation of the previous Chancellor Kwasi Kwarteng and undoes most (but not all) of what he had set out in his Growth Plan. However, again, this is another Budget in all but name, but this time it is accompanied by a lot more documents. That includes the Fiscal Report by Office for Budget Responsibility (OBR) which was missing and caused much controversy last time.
The OBR Report contains some harsh reality that Real Household Disposable Income per person is set to fall 4.3% in 2022-23. This is reported to be the largest fall since Office of National Statistics records began in 1956-57.
We have highlighted below some noteworthy aspects for Human Resources and Payroll.
Wages
The Government accepted in full the recommendations of the Low Pay Commission and confirmed the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force as follows:
From 1 April 2023, National Living Wage and National Minimum Wage rates will increase from 1 April 2023 as follows:
- 23-year-olds and over (National Living Wage): from £9.50 to £10.42 per hour;
- 21- to 22-year-olds: from £9.18 to £10.18 per hour;
- 18- to 20-year-olds: from £6.83 to £7.49 per hour;
- 16- to 17-year-olds; and
- Apprentice Rate: from £4.81 to £5.28 per hour;
- Accommodation offset: from £8.70 to £9.10 per hour.
Full details of the increases can be viewed here
Until April 2028 (further period of 2 years), Income Tax and National Insurance will be maintained at their current levels (so called ‘Stealth Taxes’).
From 6 April 2023, decrease in the income tax additional rate threshold from £150,000 to £125,140 resulting in higher earners paying more tax.
Company Cars
From April 2025, Vehicle Excise Duty will be applied on electric cars, vans, and motorcycles.
From 1 April 2025, new zero-emission cars registered after this date will enjoy 1 year only on the lowest rate of Vehicle Excise Duty before moving to the standard rate.
In addition, there would be an increase in Electric Vehicle company car tax by one percentage point year-on-year for three years from 2025.
Currently, Benefit in Kind for a pure Electric Vehicle is 2% (2022/23) and will remain at that rate up to April 2025. It will then increase to:
- 3% in 2025/26;
- 4% in 2026/27; and
- 5% in 2027/28.
We will continue to keep Members updated with developments.
From 5 December 2022, The Exclusivity Terms for Zero Hours Workers (Unenforceability and Redress) Regulations 2022 will outlaw clauses prohibiting low paid workers (currently defined as those earning less than £123 per week) from working in another place/organisation.
The ethos behind these Regulations is to allow workers to boost their income by ensuring they can take on additional work where desired – particularly during this cost-of-living crisis period
This will only apply in England, Wales and Scotland where exclusivity clauses are already banned in Zero Hour Worker Contracts (ZHC).
It will not apply in Northern Ireland.
In Northern Ireland, there was an appetite to replicate the prohibition of exclusivity clauses in ZHC. But with the lack of a functioning Executive for 3 years, a pandemic, and again the lack of a functioning Executive, it has not been implemented.
We suspect that there would be general support for also extending the prohibition to low paid workers but that would depend on having a functioning Executive.