It is that time of year where April brings with it an increase in national minimum wage, unfair dismissal compensation, a week’s pay and other statutory payments. Employers, employees and HR professionals should be aware of these changes and ensure their payments are up to date. Janey Rankin, Employment Trainee reports.
The increases are significantly higher than in previous years, which is unsurprising given the cost of living crisis which saw inflation rise 12.6% from September 2021 to September 2022.
From April 1st 2023
From 1st April 2023 National Minimum Wage will change as follows:
Workers ages 23 and over (National Living Wage): £10.42 an hour (increased from £9.50)
Workers aged 21-22: £10.18 an hour (increased from £9.18)
Workers aged 18-20: £7.49 an hour (increased from £6.83)
Workers aged 16-17: £5.28 an hour (increased from £4.81)
Apprentices: £5.28 an hour (increased from £4.81)
From April 2nd 2023
From April 2nd 2023 the following changes will be made to statutory leave and statutory sick pay payments:
Statutory maternity, adoption, paternity and shared parental pay will increase to £172.48 per week (from £156.66).
Statutory sick pay will increase to £109.40 per week (from £99.35)
From April 6th 2023
From April 6th 2023 the following changes will be paid to statutory and compensation payments:
Statutory Redundancy payments
Maximum week’s pay will increase to £643 (from £571)
Maximum basic award for unfair dismissal will increase £19,290 (up from £17,130).
Maximum compensatory award for Unfair Dismissal claims will increase to £105,707 (from £93,878)
These apply where the termination was on/after 6th April 2023.
Minimum compensatory award for Trade Union, Health and Safety, Working Time Representative, Pension Scheme trustee and employee representative dismissals will increase to £7,836 (from £6,959)
Minimum compensatory award for exclusion or expulsion from trade union will increase to £11,967 (from £10,628)
Maximum guarantee payment per day will increase to £35 (from £31)
Amount for unlawful inducement relating to trade union membership/activities or collective bargaining will increase to £5,128 (from £4,554)
Injury to feeling awards in discrimination cases
The “Vento Bands” are the levels of compensation that a successful claimant can be awarded for injury to feelings and psychiatric injury in discrimination, harassment and victimization cases in employment tribunals in the United Kingdom. They were set originally in a 2002 case Vento v Chief Constable of West Yorkshire Police. Here the Court of Appeal had to consider the level of compensation and measure of damages for discrimination, harassment and victimisation claims. The three band scale of damages, known as the Vento bands are updated each year for inflation and announced by the President of the Employment Tribunals. The new bands from April 2023 are:-.
The lowest band will increase to £1,100 to £11,200
(previously £990 to £9,900)
The middle band will increase to £11,200 to £33,700
(previously £9,900 to £29,600)
The highest band will increase to £33,700 to £56,200
(previously£29,600 to £49,300)
What to do if you need legal advice
Keeping up to date with legal changes, especially when it comes to pay and rates, is really important. Any questions, please contact us on [email protected]
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Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.