2023 Employment law: Tribunal compensation award limits published....

2023 Employment law:  Tribunal compensation award limits published....

Updated 15/03/2023:

NEW!!   Tribunal Award Updates

It’s a couple of weeks overdue, but the The Employment Rights (Increase of Limits) Order 2023 has been published, with the regular annual increase in tribunal limits.

The key increases are:

  • Compensatory Award - £105,707 (previously £93,878)

  • A ‘week’s pay’ (for basic award and redundancy payments) - £643 (previously £571)

The changes take effect from 6 April 2023 (broadly, for dismissals taking place on or after that date).

Read below to see the full list of 2023 employment law changes.....

2022 - what a year of uncertainty both economically and politically; we had 3 Prime Ministers, the sad passing of Her Royal Majesty, the war in Ukraine affecting prices, life after Covid and the ongoing fallout from Brexit.

We could have hoped that 2023 will be better but we have public and private sector strikes and a looming recession so it seems that 2023 maybe another difficult year.

Vaishali Thakerar

Director and Head of Employment Law at Lawson-West Solicitors, Vaishali Thakerar, looks at the changes which are expected this year.

Impact of Brexit:  The Retained EU Law (Revocation and Reform) Bill

Under contentious new proposals brought by Jacob Rees-Mogg MP, this is the big one for 2023. This Bill will abolish remaining EU law as of the “sunset” date of 31 December 2023 unless it is specifically retained by the UK Parliament during the year.

This will likely be an opportunity for Government to bring changes to holiday pay, TUPE, the rights of agency workers, part time and fixed term workers and general employment rights under the Working Time Regulations.

The Unison general secretary, Christina McAnea, said: “This is a countdown to disaster for all working people. It ​would mean turning the clock back to Dickensian ​times when workers had no rights.” “In a financial crisis with a headless government, people need stability and support, not a bonfire of numerous employment rights.”

How far Government will go in diluting workers’ rights is uncertain, we will need to wait and see, however we expect the unions and the working population to be further aggrieved come the end of 2023.

Wage Rates:  Increase in Annual Rates and National Living Wage

There is to be the largest increase to the National Living Wage since it was introduced, the increase will be as follows:


Rate from April 2023

Current rate (April 2022 to March 2023)


National Living Wage




21-22 Year Old Rate




18-20 Year Old Rate




16 - 17 Year Old Rate




Apprentice Rate




Accommodation Offset




There is also to be an increase in the current rates for ‘family friendly’ related pay such as statutory maternity, paternity, adoption and shared parental leave pay will increase to £172.48 per week.

SSP will also increase to £109.40 per week.

Leave for Carers:  Carers Leave Bill

Whilst we are still awaiting exact details of this Bill, it is expected that Government will announce the right for employees who are providing care, or who are arranging care for family members or friends, to have up to 1-week unpaid leave per year.  It is expected that this will be a right from day 1 of your employment and that employees will be protected from dismissal or detriment if they take this leave.

Maternity Leave:  Protection from Redundancy (Pregnancy and Family Leave) Bill

This Bill which is to be passed in the New Year, will extend the protection given to pregnant employees. Currently employees are given greater protection from redundancy from the time they start maternity leave; in that they are given priority for any suitable alternative roles over individuals who are not on maternity leave.

Once the Bill becomes law, it is proposed that employees will gain such rights much earlier, notably from the date they announce that they are pregnant until a period lasting 18 months following the date the maternity leave starts (6 months following their return if the employee takes the full 12-month maternity leave entitlement).

This protection is also expected to extend to adoption leave and shared parental leave.   

Child Care:  Neonatal Care (Leave and Pay) Bill

This Bill if passed will see employees receive up to 12 weeks leave (and pay, subject to qualifying criteria) for those responsible for care of a child that is receiving neonatal care. The full details of this are yet to be confirmed as the Bill is still going through the Houses so specifics may change, however as it stands, the Bill will apply to parents whose babies who are admitted into hospital up to the age of 28 days, and who have a continuous stay in hospital of 7 full days or more. This again is expected to be a day 1 right and will therefore apply to all employees.

Flexible Working:  to become a day one right

The Employment Relations (Flexible Working) Bill 2022-23 is an amendment to the existing statutory regime (the existing Bill) dealing with requests for flexible working – this Bill has now gained Government backing.

The changes mean that it is a day one right to request flexible working and an employee can make two requests in a 12-month period, but no more than one request at any time. This Bill, which is still to be discussed in the House of Lords, asks employers to respond to any request within 2 months and they are required to consult with employees before rejecting a request.

Sexual Harassment:  Sexual Harassment at work

There is expected to be a reform on the existing law on harassment. This was introduced by parliament on the 15th June 2022 and makes provision in relation to the duties of employers and the protection of employees under the Equality Act 2010 and it has received Government backing.

The Workers Protection Bill introduces a new duty on employers to take all reasonable steps to prevent sexual harassment in the workplace and reinstates employers’ liability for third party harassment. If this Bill is passed as it stands, then an employee would be able to pursue a third party harassment claim against their employer after a single incident of harassment by a client or customer.

If this Bill is to be passed, then it is unlikely to come into force until 2024.

Unions, Strikes and Strike Action

Following on from the strikes of public sector workers in 2022 and 2023, including Ambulance Service strikes which saw vulnerable and very sick people struggle to get to hospital, the delivery of critical health support and the impact of striking NHS staff and Ambulance workers has dominated the media spotlight lately. Out of this, and other public sector and union-supported worker strikes, The Government has proposed a new Strikes (Minimum Service Level’s Bill which provides for a minimum service levels where the strike action is taken in public services, i.e. health, teaching, rail, security and fire and rescue. This is controversial and it is vehemently opposed by the unions.

2023 Law Changes

Vaishali Thakerar

Vaishali Thakerar, Director and Employment Law Solicitor
Lawson-West Solicitors, Leicester

Vaishali commented:  “It is difficult to know exactly when the changes highlighted will come into force, but with the various issues referred to above, new guidance on employment practices and data protection from the ICO, and the progression of other consultations, 2023 is set to be a very busy year."

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