Pillars of Justice

Employment Law is changing in 2022,
what employers need to know!

Here’s our round-up of the main employment law changes that are coming this year that you need to know about to ensure your business is up to date and ready to hit the ground running when it comes to your staff…

National Minimum Wage

The national minimum wage will be increasing on 1st April 2022. The table below advises of the rate changes based on age range:
 

  • For the over 23 year olds, the rate will be £9.50 per hour, up from £8.91 in 2021

  • For 21 and 22 year olds the rate will be £9.18 per hour

  • For those aged 18 – 20 it will be £6.83 per hour

  • For those under 18 it will be £4.81 per hour

  • The apprentice rate will rise to £4.81 per hour

  • For those aged 23 & over – NLW rises to £9.50 per hour (Note this used to apply to only those aged 25 and over)

  • The ‘accommodation offset’ (the maximum amount an employer who pays minimum wage and who provides live-in accommodation to staff is allowed to deduct from daily pay) increases to £8.70 per day

  • The Government has also announced that National Insurance Contributions will rise by 1.25% for most workers from 6 April 2022, in order to increase funding for the NHS and the social care sector

Statutory Sick Pay

From 3 April 2022, the rate of statutory sick pay will rise from £96.35 to £99.35 per week.

 

We recommend that you review your policies and documents that mention any rates, such as employment contracts, maternity policies, and sickness absence procedures, and update them ready for the change.

Redundancy

Every tax year there is an increase to the core compensation limits for certain employment rights. This year the following increases will apply from 6 April 2022 inclusive:

 

•A week’s basic pay, which is the figure used in redundancy calculations and basic awards will increase from £544 to £571

•The maximum compensatory award for an unfair dismissal claim increases from £89,493 to £93,878.

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Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay

These rates apply from 3 April 2022:

 

  • Statutory Maternity Pay - weekly rate for the first 6 weeks 90% of the employee’s average weekly earnings

  • Statutory Maternity Pay – weekly rate for remaining weeks £156.66 or 90% of the employee’s average weekly earnings, whichever is lower

  • Statutory Paternity Pay (SPP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower

  • Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks 90% of the employee’s average weekly earnings

  • Statutory Adoption Pay – weekly rate for remaining weeks £156.66 or 90% of the employee’s average weekly earnings, whichever is lower

  • •Statutory Shared Parental Pay (ShPP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower

  • Statutory Parental Bereavement Pay (SPBP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower

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Extra bank holiday in June

There will be an extra bank holiday on Friday 3 June 2022 to celebrate the Queen’s platinum jubilee. In addition, the late May bank holiday has been moved to Thursday 2 June (spring bank holiday) – making a 4-day weekend.
 

This means that employers face the unusual situation of there being two back-to-back bank holidays in June 2022.

You will need to look at how you will approach this additional bank holiday. This will be determined to some extent by the wording in your employees’ contracts of employment.
 

For example, where the contract entitles employees to take leave on “all bank and public holidays”, as opposed to the “usual bank holidays” or where listed - the employer will be required to grant the extra day as leave.
 

This extra day will also need to be considered and pro-rated for those working part-time.
 

Even if you are not contractually obliged to grant your employees the extra day as leave, you may choose to do so as a goodwill gesture (for example, in reward f their hard work during the pandemic).