From April 2023, the national minimum wage and Vento band awards for injury to feelings and psychiatric injury will be increased as part of the annual review and increasingly to take into account rising inflation.
National Minimum Wage Increase
From 1 Aril 2023, the national minimum wage is also increasing. Bearing in mind that 1.6 million employees are paid the national minimum wage (according to the Low Pay Commission), this will be a significant addition cost for employers. The national minimum will change as follows:
It is important for employers to keep careful records of wages, but now also focus on whether overtime, deductions and salary sacrifice may drop workers below the national minimum wage where it had not previously being an issue.
Vento Bands Increase
Any claims presented from 6 April 2023 onwards, in the joint presidential guidance note announced that the Vento bands would increase as follows:
- lower band – £1,100 – £11,200;
- middle band – £11,200 – £33,700;
- upper band – £33,700 – £56,200; and
- exceptional cases – £56,200+.
The Vento bands were implemented in the decision of Vento v Chief Constable of West Yorkshire and are a discretionary award, awarded for injury to feelings that are suffered by a claimant. They are completely separate from compensation for financial loss and are not implemented to be a direct punishment on the employer. The Employment Tribunal will consider a number of relevant facts including (but not limited to):
- the vulnerable nature of the claimant;
- the impact the treatment had on them; and
- the degree of stress caused to the claimant.
If as an employer you have concerns about meeting your obligations or as an employee whether your employer is meeting their obligations, please do get in contact with a member of our Employment Team who will be able to guide you in relation to any issues.