EMPLOYMENT LAW CHANGES FROM APRIL 2022

The Employment Rights (Increase of Limits) Order 2022 has been laid before parliament.

This year's core compensation limit increases are:-

• a week's pay (basic award / redundancy payment) - £571 (from £544)
• maximum compensatory award - £93,878 (from £89,493)

The new limits will apply to dismissals occurring on or after 6th April 2022.

April 2022: Increase to National Insurance Contributions 

From April 2022, a temporary 1.25% increase to National Insurance Contributions will apply for the 2022/23 tax year to fund social care. This will be replaced by a permanent 1.25% Health and Social Care Levy from April 2023. 

1 April 2022: National Minimum Wage and National Living Wage rates increase

On 1 April 2022, the National Minimum Wage (NMW) and National Living Wage (NLW) are increasing as follows:

• NLW rate for 23+ year olds: £9.50 per hour
• NMW rate for 21-22 year olds: £9.18 per hour
• NMW rate for 18-20 year olds: £6.83 per hour
• NMW rate for 16-17 year olds: £4.81 per hour 
• NMW rate for apprentices: £4.81 per hour 

1 April 2022: Requirement to explicitly consider COVID-19 in health and safety risk assessments ends 

From 1 April 2022, the current requirement for businesses to explicitly consider COVID-19 risks as part of their health and safety risk assessments will end. However, employers will remain responsible for mitigating COVID-19 risks as appropriate to their workplace circumstances.  The Government has advised that new health and safety guidance on how to do so will be released from 1 April. 

3 April 2022: Statutory maternity, paternity, adoption, shared parental and parental bereavement pay rates increase

These rates are all increasing from £151.97 per week to £156.66 per week. 

6 April 2022: Increase to statutory sick pay 

Statutory sick pay (SSP) is increasing from £96.35 per week to £99.35 per week.

6 April 2022: Increase to statutory redundancy pay cap 

Whilst the amount of statutory redundancy pay that a business is required to pay depends on the relevant employee’s age, length of service and pay, redundancy payments are capped by reference to a weekly pay amount. 

From 6 April 2022, the weekly pay cap is increasing to £571 from £544. This means that the maximum amount a business can be required to pay is increasing to £17,130 from £16,320.

6 April 2022: Increase to compensation for unfair dismissal 

Compensation in unfair dismissal claims is split into a ‘basic’ award and a ‘compensatory’ award. The compensatory award is designed to compensate an individual for their loss of earnings up to one year’s gross pay, which is subject to a cap. 

From 6 April 2022, the cap for the compensatory award is increasing from £89,493 to £93,878. 

6 April 2022: Changes to right to work checks

From 6 April 2022, employers will no longer be permitted to carry out manual right to work checks for individuals holding a biometric residence card (BRC), biometric residence permit (BRP) or frontier worker permit (FWP). An online right to work check must be carried out for these individuals instead. 

The Government has also announced plans to enable employers to use Identification Document Validation Technology (IDVT) service providers to carry out digital checks on British and Irish citizens holding a valid passport, but who are outside the scope of the Home Office’s online right to work check service.