Employment law updates – all change from April 2023

From 6 April 2023, the rates used for calculating employment entitlements will change.  We have summarised the new amounts below.

Unfair dismissal

• Maximum Basic Award: £19,290 (maximum weekly pay used to calculate this award is £643/week)
• Maximum Compensatory Award: £105,707 or 1 years’ pay (whichever is lower)

Whistleblowing

No maximum award of compensation.

The range of Injury to Feelings Award – from £1,100 to £56,200

Discrimination

No maximum award of compensation.

The range of Injury to Feelings Award – from £1,100 to £56,200

Statutory Redundancy Pay (SRP)

For redundancies which take effect after 6 April, the amount of the legal minimum redundancy pay due will rise.  The maximum amount of an employee’s weekly pay to use in the calculation is £643.

SRP is calculated based on the employee’s weekly pay, multiplied by:

• For each year employed under age 22: 0.5
• For each complete year employed aged between 22 and 40: 1
• For each complete year employed aged 41 or over: 1.5

Statutory Sick Pay

• £109.40/week for a maximum of 28 weeks

Family leave payments

Statutory Maternity Pay

• 90% of average weekly earnings for the first 6 weeks.
• £172.48/ week or 90% of average weekly earnings (if lower) for up to 33 further weeks

Statutory Adoption Pay

• 90% of average weekly earnings the first 6 weeks
• £172.48/week or 90% of average weekly earnings (if lower) for up to 33 further weeks

Statutory Paternity Pay

• £172.48/week or 90% of average weekly earnings (if lower) for up to 2 weeks

Shared Parental Pay

• £172.48/week or 90% of average weekly earnings (if lower) for up to 39 weeks

Statutory Parental Bereavement Pay

• £172.48/week or 90% of average weekly earnings (if lower) for up to 2 weeks

National Minimum Wage

• National Living Wage (23+): £10.42/hour
• Adult rate (21-22): £10.18/hour
• Development rate (18-20): £7.49/hour
• School leavers (16-17): £5.28/hour
• Apprentices: £5.28/hour

Annual leave

• Right to 5.6 weeks’ paid leave per year for all workers. This entitlement can include bank and public holidays.

This information is correct from April 2023 and is intended as a summary. We would be happy to advise you further on how to protect your position (as an employer, employee or worker, please contact our employment law team).

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