As an employer it’s important to know of any forthcoming employment law changes. Being aware of the changes ensures you can prepare for them and protect your business from any legal claims. Here’s a rundown of the changes taking effect from April 2022.
Gender pay gap reporting
For businesses in the private sector with a headcount of 250 or more, your ‘snapshot’ gender pay gap reporting is due to be published on or before 4th April 2022. The information about what you need to report can be found here.
There is currently speculation about the introduction of new ethnicity pay gap reporting, but there are no clear plans to introduce that requirement.
Payroll costs – National Minimum Wage rates
The cost of living increase is likely to be a key issue for many employers who will face increasing pressure from employees to increase wages.
Whilst there is no legal requirement to increase pay to address issues with increases in inflation rates, National Minimum Wage/living rates are going up on 1 April 2022 so if your pay is based on minimum wage rates, you will need to implement these changes:
|Age group||Up to 31/3/2022||From 1/4/2022||% Increase|
|23 and over||£8.91||£9.50||6.62|
|21 or 22||£8.36||£9.18||9.81|
|18 – 20||£6.56||£6.83||4.12|
|Under 18 (but above compulsory school age)||£4.62||£4.81||4.11|
|Apprentices under 19 (or over 19 but in year 1 of apprenticeship)||£4.30||£4.81||11.86|
Health and Social Care Levy – 6 April 2022
The UK is introducing a new social care levy from 6 April 2022 to help fund health and social care. This will be collected via a 1.25% increase in National Insurance rates for employers and employees in 2022.
People above State Pension age will not be affected by the temporary increase to National Insurance contributions for the 2022 to 2023 tax year, but will be liable to pay the levy from April 2023.
Statutory pay rates
Family friendly leave
From 3 April 2022 Statutory Maternity, Adoption, Paternity, Shared Parental and parental bereavement pay will increase to £156.66 per week.
Statutory Sick pay
On 6 April 2022 Statutory Sick Pay will increase to £99.35 per week.
Statutory redundancy payments
For anyone made redundant on or after 6th April 2022, the statutory redundancy pay weekly pay rate increases to £571, therefore for anyone who leaves due to redundancy on or after 6th April 2022 you will need to base their redundancy pay on this new weekly cap. If the redundant employee’s normal weekly rate is under this figure, you should calculate their redundancy compensation based on their actual weekly pay rate.
Right to work checks
Although the concept of right to work checks is not new, there are changes to be aware of which come in to effect from 6th April 2022. Full guidance is here
Key changes include:
- implementation of a new Identity Document Validation Technology (IDVT) process,
- changes for those that hold a Biometric Residence Card, Biometric Residence Permit or Frontier Worker Permit.
Bank holidays – The Queen’s Jubilee
In 2022 there will be an additional Bank Holiday to celebrate the Queen’s Platinum Jubilee on Friday 3rd June. The usual late May bank holiday has moved to Thursday 2 June to give workers a four-day weekend.
Individual contracts of employment will dictate whether employees are entitled to take this additional day off, and how this day’s leave will be treated. Employers should check the wording in contracts and communicate clearly to employees whether they are expected to work on the additional bank holiday, and / or if they need to take it from their annual leave entitlement.
As the Jubilee week is to all intents and purposes a 3-day week and is at school half-term in most places, employers should prepare for a large number of annual leave requests.
If you’re concerned about what these employment law changes mean for your business and need help in preparing for them, please get in touch with Helpful HR.