Updates April 2022

Changes to statutory rates

National Minimum Wage (NMW) and the National Living Wage (NMW) are set to increase in April:

Age	Minimum rate from April 2022
Age 23 and over (NLW)	£9.50
21–22-year-olds	£9.18
18–20-year-olds	£6.83
16–17-year-olds	£4.81
Apprentice rate for those under 19 years or those over 19 in their first year of apprenticeship	£4.81

The accommodation offset rates will also increase, with a daily rate of £8.70 up from £8.36 and a weekly rate of £60.90 up from £58.52. 

Family related pay such as Statutory Maternity, Paternity, Adoption, Parental Bereavement, and Shared Parental Paywill increase from 3 April 2022 of £156.66 from £151.97.

From 6 April 2022, the rate of Statutory Sick Pay will increase to £99.35 per week up from £96.35 per week. 

For the first time in two years the minimum average weekly earnings to qualify for SSP will increase to £123 from £120 (known as the Lower Earnings Limit or LEL). 

The Health and Social Care Levy comes into effect on 6^th April 2022. And most National Insurance Contributions will see a rise of 1.25% for Employer Class 1, employee Class 1, Class 1A, Class 1B and Class 4 employees and employers with the extra money going towards funding for health and social care services. HMRC have asked employers to include the following on all payslips between 6 April 2022 and 5 April 2023: “1.25% uplift in NICs funds NHS, health and social care”, which, whilst optional, will remind employees why this has happened. Do ensure that your payroll rates are adjusted.

From 6 April 2023 National Insurance contribution rates will go back down to 2021/2022 levels, and the levy will become a separate new tax of 1.25%.

The new Employment Rights (Increase of Limits) Order 2022 takes effect from 6 April 2022. The limits relating to dismissal compensation will apply for any dismissals where the effective date of termination is on, or after, the 6 April 2022. Notable increases include:

• the limit on a week’s pay for calculating redundancy and the unfair dismissal basic award has increased significantly from £544 to £571
• the increase to a week’s pay means the maximum basic award for statutory redundancy payment and unfair dismissal is now £17,130 up from £16,320
• the maximum compensatory award for unfair dismissal has increased to £93,878 or a year’s pay, whichever is lower.

This means the maximum an employment tribunal can award for unfair dismissal, totalling the maximum basic and compensatory award, has increased to £111,008.

Statutory Sick Pay (SSP)

Over the past two years, the rules surrounding Statutory Sick Pay (SSP) have changed many times.

The forthcoming changes are:

From 24^th March 2022:

• The COVID-19 provisions within the Statutory Sick Pay and Employment and Support Allowance regulations will be removed. This includes SSP payments for isolation where the individual is not unwell, and the payment of covid related SSP from day one of sickness.

• Claims under the SSP Rebate scheme can no longer be made.

From 1 April 2022:

• Guidance on voluntary COVID-status certification in domestic settings will be removed, and NHS COVID Passed are no longer recommended.
• Free symptomatic and asymptomatic testing in England will end.
• The health and safety requirement for every employer to explicitly consider COVID-19 in their risk assessments will be removed.
• The legal requirement to self-isolate will end.

 

National Insurance Contributions (NICs) rise 

On April 6^th, certain (Class 1 and Class 4) NICs increased by 1.25%, with the increase going towards social care and the NHS. This means if you earn more £9,880 you will be charged an increase of 1.25% on earnings. Most employees pay 12% of income between £9658-£50,270 then 2% above that.  Now, they’ll pay 13.25% and 3.25%.   

It’s not all bad news…. In July 2022 the tax-free threshold will be increased by almost £3000 from £9,880 to £12,570, meaning that individuals will not pay NICs unless they earn more than £12,570 benefitting roughly 2 million people.

Employer Class 1 NICs has increased to 15.05% from 13.8%

From April 2023, a new 1.5% levy will apply with NIC rates returning to 2021/2022 rates. Employers will be required to note on payslips that a separate 1.25% levy will apply for NHS and health care so employees understand what it’s helping to fund.  

Vaccination status

The Government announced last year that all care home workers and anyone entering a care home in England would need to be fully vaccinated, unless exempt – the regulations came into force on 11^th November 2021.

On 31^st January the Government revoked these rules and advised that dismissal notices should not be issued to staff because they are not vaccinated.

If you are currently going through a dismissal process, or have questions around this, please contact us.

 

Digital Right to Work Checks

Employers MUST check ALL job applicant’s right to work before employment. Hefty penalties apply for failure to carry out such checks including unlimited fines, and imprisonment.

During the pandemic temporary changes were made, including allowing employers to check documents over videolink, rather than in person to allow for remote recruitment. The planned end date of this temporary change was set for April 2022. However, following positive feedback, this is to be implemented permanently using Identification Document Validation Technology (IDVT) technology.

The change has been deferred until October 2022 when there will be options for employers.  The options will be:

• Manual checks of physical documents
• IVDT checks for British and Irish citizens
• Home Office online right to work check
• Contacting the Home Office.