Business owners and HR professionals need to be aware of employment law developments which have come into effect in April 2022.
1. Comply with national minimum wage increases
From 1 April 2022, the hourly rates of the minimum wage increased:
National Living Wage for workers aged 23 and over – from £8.91 to £9.50
Workers aged 21-22 – from £8.36 to £9.18
Workers aged 18-20 – from £6.56 to £6.83
Workers aged 16-17 – from £4.62 to £4.81
Apprenticeship rate from £4.30 to £4.81
Employers should check their pay rates against the current minimum to ensure that they increase the remuneration where necessary for the period from 1 April 2022. It is also advisable to send affected staff a letter informing them of any pay rise to reflect the national minimum wage increase.
2. Increase statutory family related pay and sick pay
The rate for statutory maternity (SMP), paternity (SSP), adoption (SAP), parental bereavement SPBP) and shared parental pay (SShPP) has increased from £151.97 to £156.66 effective from 3 April 2022.
The amount of weekly statutory sick pay has also increased from £96.35 to £99.35 effective from 6 April 2022.
Where any amounts are mentioned in policies and procedures, these will need to be updated.
3. Update statutory redundancy payment calculations
An employee who is dismissed due to redundancy with over two years’ service will normally be entitled to a statutory redundancy payment which is calculated using an employee’s weekly pay, age and length of service.
The calculation of weekly pay is capped at a maximum amount. This was £544 per week but has been increased to £571 per week from 6 April 2022.
This new weekly pay cap figure will apply to any dismissals due to redundancy made on or after 6 April 2022.
4. Publish gender pay gap report
The gender pay gap is the difference between the average (mean or median) earnings of men and women across a workforce.
The requirement to publish an annual report, including specific figures about their gender pay gap, generally applies to employers with a headcount of 250 or more staff.
Employers must report and publish their gender pay gap information within one calendar year of their snap shot date. This means private companies and charities must have reported their 2021 data by 5 April 2022 and public sector organisations by 31 March 2022.
If you are looking for employment advice relating to the topics mentioned or any other employment law matters, Farleys has a team of specialists on hand to assist you in making sure the steps you take comply with the law and ensuring your business is protected from any future claims. Contact us today for advice tailored to your business on 0845 287 0939 or get in touch through our online contact form.