Employment Law changes expected in 2023

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Further to our recent article on important employment law case law from 2023, there are proposed further changes in 2023 that are proposals and changes to legislation that are important to note for employees and employers.

Below is a summary of some of the additional changes that have been proposed and are likely to be brought into force in 2023.

Employment Law Changes

The Retained EU Law (Revocation ad Reform) Bill

By the end of 2023, the Retained EU Law (Revocation and Reform) Bill aims to abolish all EU law that is not specifically reinstated or replaced. This may affect a number of EU-derived secondary legislation, including the Working Time Regulations, Agency Worker Regulations and TUPE.

There are concerns around whether the end of 2023 will provide enough time to reform these laws, although there is a potential extension to June 2026 but no later. We encourage employers to keep updated on developments around the Bill, as if passed, it could have a serious impact for both employers and employees.

King’s Coronation

King Charles III coronation is taking place on Saturday 6 May 2023 and there will be an additional one-off bank holiday on Monday 8 May 2023 to celebrate. Employers should check the wording of their employment contracts to determine whether employees are entitled to this additional day, and whether this will be paid.

Carer’s Leave Bill

The Carer’s Leave Bill proposed the introduction of a day one right for up to five working days of unpaid leave for employees with long-term caring responsibilities of a dependant, either arranging or providing care. Dependants include partners, children, parents, people living in the same house as the employee and people who reasonably rely on the employee.

The employee will be required to give notice twice the length of the leave and can take the time as partial or full days and can be taken flexibly at different times to suit their caring responsibilities. Proof is not needed to show how the leave has been used.

Employers should be aware that if the Bill becomes law employees will be protected from dismissal or detriment due to taking this leave. If an employer dismisses an employee because of this leave, it will be an automatic unfair dismissal. This bill has passed all stages within the House of Commons and had its second reading in the House of Lords on 3rd March 2023; it will now advance to the committee stage.

Draft Code of Practice – Fire and Re-hire

A draft Code of Practice has been introduced, setting out employer’s responsibilities when seeking to change employee’s terms and conditions by way of dismissal and re-engagement (or “fire and re-hire” as it is often termed). The Code doesn’t make the practice of “fire and re-hire” illegal, and is intended to supplement ACAS guidance introduced in 2021.

It recommends that the practice should be used as a last resort, and makes recommendations for sharing information and keeping changes under review. A failure to adhere to the Code could result in employment tribunals being able to award an uplift of 25% to unfair dismissal claims.

The Code is currently open for consultation until mid-April 2023 and will then need to be presented before Parliament before it can take effect.

Industrial Action

The Strikes (Minimum Service Levels) Bill has been introduced before Parliament, in response to significant public sector industrial action at the end of 2022 and continuing into 2023. There is currently no general requirement in the UK to maintain minimum service levels in critical services, unlike in many European countries.

This Bill will allow the Secretary of State to make regulations setting out “minimum service” required in certain sectors including fire, ambulance and rail services during strikes. Employers would also be able to serve a “work notice” on unions who have given notice of a strike. Unions and workers who fail to comply would face losing protections against being sued or dismissed.

The Bill is at Committee stage in the House of Lords, but is not without controversy. It has attracted criticism from unions, and the Labour Party has also indicated that if it comes into power, it will repeal the legislation if it is enacted.

If you are affected by any of the above proposed changes then please feel free to get in contact with our employment team who will be happy to discuss through the implications of the proposed changes and how you can protect both your business and employers from these changes,