New Minimum/Living Wage Changes Effective from 1st April 2023

The national minimum wage and living wage rates are set to increase from 1st April 2023, alongside other changes to employment law. It is crucial for employers to stay informed about these changes to ensure they are complying with the law.

It is important for employers to stay up-to-date with changes to employment law

Minimum Wage Rates

From 1st April 2023, the minimum wage rates will increase. Employers will need to ensure that their employees are paid the new minimum wage rates accordingly. The new rates are as follows:

National minimum/living wage from 1st April 2023
National minimum/living wage from 1st April 2023

 

Statutory Pay

Along with the minimum wage rates, statutory pay rates are also set to increase from 1st April 2023. Employers will need to be aware of these changes and ensure their employees receive the new rates. The new rates are as follows:

  • Statutory Sick Pay (SSP) will increase from £99.35 to £109.40 per week, with a minimum rate of £8.91 per hour.
  • Statutory Maternity, Adoption, Paternity, and Shared Parental pay will increase from £156.66 to £172.48 per week.

Exclusivity Clauses

Employers are prohibited from using exclusivity clauses that intend to prevent team members from working for one or more employers in zero-hour contracts to those on or below the lower earnings limit, set at £123 a week for the 2022/2023 tax year.

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Rights to Work Checks

During the pandemic, rights to work checks were altered to a digital checking system. However, as of October last year, employers are expected to carry out manual checks by physically meeting with the individual to check and copy their original documentation or appoint an identification service provider to check the passport of the individual on the employer’s behalf or check themselves using ID document validation technology.

 

It is important for employers to stay up-to-date with changes to employment law, particularly with regard to minimum wage rates, statutory pay, exclusivity clauses, and rights to work checks. Employers must ensure that they comply with these changes to avoid any legal penalties or consequences. If you are unsure about what these changes may mean for you or your team, do not hesitate to get in touch with us, we are happy to have a conversation about your organisation’s needs.

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