The following employment and immigration law changes are coming into force in April 2023:
|National minimum wage
The national minimum wage rates will increase from 1 April 2023 as follows:
|Statutory maternity, adoption, shared parental, paternity and parental bereavement pay will increase from £156.66 to £172.48 per week from 2 April 2023.
Statutory sick pay will increase from £99.35 to £109.40 per week from 6 April 2023.
The maximum unfair dismissal compensatory award will increase from £93,878 to £105,707. Consequently, for any dismissals which take effect on or after 6 April 2023, the cap on the compensatory award will be the lower of £105,707 or 52 weeks' pay.
The limit on a week's pay used to calculate certain statutory payments and provisions will rise from £571 to £643 from 6 April 2023. As a result, the maximum basic award and statutory redundancy payment will be £19,290.
From 6 April 2023, the threshold above which taxpayers pay the top rate of tax is going to be reduced for all UK taxpayers from £150,000 to £125,140.
The top two rates of Scottish income tax will increase by 1% from April 2023, the higher rate going up from 41% to 42% and the top rate going up from 46% to 47%.
The pensions lifetime allowance (the maximum amount pension savings can grow to and stay tax free) will be removed from 6 April 2023.
From 6 April 2023 the annual allowance for tax relief on pension savings in a registered pension scheme will increase from £40,000 to £60,000.
|Gender pay gap reporting
Private and voluntary sector employers with 250 or more employees must publish a gender pay gap report by 4 April 2023 (using 5 April 2022 as a snapshot date). For relevant public sector employers, a report must be published by 30 March 2023 (using 31 March 2022 as a snapshot date). Furlough will no longer have an impact on calculations.
|Offshore wind workers concession
A temporary concession to allow the employment of overseas nationals joining vessels involved in the construction and maintenance of offshore wind farm projects in UK territorial waters without the need to obtain a work visa is due to end on 30 April 2023.
|Innovator Founder visa route
A new Innovator Founder route will be introduced from 13 April 2023 replacing the existing start-up and innovator visa routes. The start-up route will close to new applicants from 13 April 2023 except for individuals who have already been issued with an endorsement.
There will be various changes under this new route, including the removal of the £50,000 minimum funds requirement for overseas nationals seeking to come to the UK to establish an innovative business, which may provide added flexibility in some cases. Individuals will now also be able to seek employment outside of running their business, provided their secondary employment is a skilled role (at least RQF Level 3).
|Salary thresholds for visa routes
The following minimum annual salary thresholds will increase from 12 April 2023:
There will be other immigration changes in April including new going rates for the listed job codes. The most up to date guidance should always be considered when issuing a certificate of sponsorship on or after 12 April 2023. Further information on these changes will follow in our next immigration update blog, which will be published shortly.
Future HR agenda
If you would like help with policy development, or would like to discuss any of the topics raised in this blog, please get in touch with the Brodies Employment and Immigration team.
Workbox by Brodies subscribers can take a look at our 2023 HR to-do list and the accompanying training slides. There is also a What's New? page which enables users to horizon-scan by tracking recent and forthcoming legislation, cases and consultations relevant to employment and immigration law.