Preparing Your Business for the Impact of HR Legislation Changes

The world of employment is always changing.

Not only are the thoughts, expectations and attitudes of people constantly evolving, but new legislation is created, laws are introduced and your compliance requirements can shift on a regular basis.

For businesses, it's crucial to keep up with the latest changes to ensure you’re creating a fair and safe workplace environment for everyone - as well as avoiding any legal disputes or penalties!

Despite the employment law changes not coming at the rate many expected, there are a few things due to come into effect in April that you need to be prepared for.

1. Increase to National Minimum Wage

From 1 April 2023 the national living wage (NLW) and national minimum wage rates (NMW) will increase. The new rates will be:

●     For those aged 23 & over – NLW rises to £10.42 per hour - Note this used to apply to only those aged 25 and over (up 9.7% from £9.50)

●     For 21 and 22 year olds the rate will be £10.18 per hour (up 10.9% from £9.18)

●     For those aged 18 – 20 it will be £7.49 per hour (up 9.7% from £6.83)

●     For those under 18 it will be £5.28 per hour (up 9.7% from £4.81)

●     The apprentice rate will rise to £5.28 per hour (up 9.7% from £4.81)

The ‘accommodation offset’ (the maximum amount an employer who pays minimum wage and who provides live-in accommodation to staff is allowed to deduct from daily pay) will also increase to £9.10 per day; up 4.6% from £8.70.

2. Increase to family statutory leave pay and statutory sick pay

Several statutory benefit payments are also set to increase, according to the DWP's latest proposal. The revised weekly rates are scheduled to take effect from 10 April 2023 and include:

●    Statutory sick pay (SSP) will be £109.40, up from £99.35

●    Statutory maternity pay (SMP) and maternity allowance will be £172.48, up from £156.66

●    Statutory paternity pay (SPP) will be £172.48, up from £156.66

●    Statutory shared parental pay (ShPP) will be £172.48, up from £156.66)

●    Statutory adoption pay (SAP) will be £172.48, up from £156.66)

●    Statutory parental bereavement pay (SPBP) will be £172.48, up from £156.66

Preparing for HR Legislation Changes

 Although the timeline hasn’t yet been made clear, more HR legislation changes are expected and it's important for businesses to prepare in advance. Here are some tips to help you.

●     Stay informed

 There is a lot of talk about potential changes and developments in legislation and employment law in particular. From flexible working policies to the long-anticipated Employment Bill, it’s important to stay informed. Invest in training, read up on the subject and consult with experts to ensure you remain in the loop and up to date.

●     Review your policies

 Changes to legislation means changes to your policies and procedures to ensure you remain compliant and on the right side of the law. Even without a concrete plan on what’s ahead, you can still review your documents, make sure you’re aware of what might need updating or adapting and take proactive steps to getting yourself ahead of any changes.

●     Educate your people

 To ensure everyone is prepared for change, you need to make sure they’re aware of what to expect and understand their responsibilities. As well as informing your people how their role and responsibilities may be impacted, you can also provide training sessions and resources to equip them with the knowledge and skills needed to navigate new legislation.

●     Create a plan

 Although the future of employment law isn’t as clear as many would like, it’s important to strategise and create a contingency plan. Legislation changes can have a significant impact on every aspect of your business, especially in terms of HR and budgeting. Be proactive where you can and make necessary adjustments to minimise impact when the time does come.

●     Ask for help

 If you're unsure about how to navigate the new HR legislation changes, reach out and ask for advice. Whether it be your own manager, or someone from a legal professional or HR consultant. They can help you understand the implications of the changes and develop an action plan. My team and I are happy to have a chat and find out if there’s anything we can do to help you. Just drop us an email at penny@pennyjoneshr.com.

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