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Employment Law Changes

Are you compliant with the April 2022 UK Employment Law changes?

April 01, 20223 min read

April is one of the 2 significant dates in the employment law year, as this tends to be the time when employment law changes are made.” - Pam Molyneux

COVID - employment changes

• 24 March 2022, the COVID-19 provisions within the Statutory Sick Pay and Employment and Support Allowance regulations were removed. 

This includes SSP payments for those isolating (unless too unwell to work), and the payment of SSP from day 1. 

All claims under the SSP rebate scheme for covid-related sickness must be submitted, and all amendments to claims made before this date.

• 28 March 2022, the legal requirement to self-isolate in Wales due to covid was also revoked. 

So, lets get to the April updates you need to consider:

National Minimum Wage

• 1 April 2022, the National Minimum Wage (NMW) rates increased:

£9.50 - for those Age 23 or over (National Living Wage)

£9.18 - for 21 to 22 year olds

£6.83 - for 18 to 20 year old

£4.81 - for under 18's and apprentices

Payroll providers will usually automatically apply the increases - it is worth checking that is the case though so you are compliant with the NMW legislation.

It is also worth communicating the change with staff - check out the letter advising of pay increase you can adapt in our resources section.

Family Friendly Payment Rates

• 3 April 2022 (inclusive), the Family Friendly payment rates increased which includes statutory maternity pay (SMP), maternity allowance (MA), statutory paternity pay (SPP), statutory shared parental pay (ShPP), statutory adoption pay (SAP) and statutory parental bereavement pay (SPBP).

All will be £156.66 (up from £151.97) or 90% of the employee’s average weekly earnings, whichever is lower.

We wouldn't recommend having rates of pay noted in your Handbook, rather just that the pay will be paid in line with statutory rates. If you do, now is the time to update them!

In your template letters, it's best to make reference to INSERT CURRENT RATE - that way, you are always prompted to go get the most up to date rate.

Right To Work Checks

• 6 April 2022, the ability to manually check the status of those with a biometric residence card or permit, or frontier work permit, has been removed.

From that date, only online checks will be possible. In order to complete these checks, you need the individual's date of birth and right to work share code. 

Statutory Payment Rates

• 6 April 2022, the following rates increased: 

National insurance contributions for employer and employee will increase by 1.25% to help fund health and social care services. HMRC has asked that payslips include a message to say "1.25% uplift in NICs funds NHS, health & social care." This is in place until 5 April 2023.

Statutory Sick Pay (SSP) will increase to £99.35 per week (up from £96.35 per week) and the minimum average weekly earnings required to qualify for SSP will increase to £123 per week (up from £120 per week).

For England and Wales unfair dismissal/redundancy pay statutory week’s pay will increase to £571 (up from £544). This means that the maximum statutory redundancy payment and unfair dismissal basic aware will be £17,130.

The cap on the compensatory award for unfair dismissal will increase from £89,493 to £93,878.

The Vento bands operate as the parameters for injury to feelings awards in successful discrimination claims.

In Employment Tribunals in England or Wales, the new Vento bands will be as follows:
• lower band - £990 to £9,900 (less serious cases);
• middle band - £9,900 to £29,600 (cases that do not merit an award in the upper band); and
• upper band - £29,600 to £49,300 (the most serious cases), with the most exceptional cases capable of exceeding £49,300.

national minimum wagestatutory maternity paymaternity allowancestatutory paternity paystatutory adoption pay
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