What to look out for as an Employer in 2022

As an employer, it is important that you are aware of any changes or disruptions which may affect your employees or your business. Although some of the proposed changes mentioned below do not have firm dates, you can develop a plan now for when the changes are given an implementation date.

National minimum/living wage

We know that this will be changing in April, and you will need to ensure, as an employer, that you are aware of important birthdays (as staff may move within pay bands) and the new rates so you can implement these changes. The 2022 rates will be:

23+ year olds = £9.50

21-22 year olds = £9.18

18-20 year olds = £6.83

16-17 year-olds = £4.81

Apprentices = £4.81.

Similarly, from 6 April 2022, statutory maternity, paternity, adoption, shared parental, and parental bereavement pay will increase from £151.97 per week to £156.66 per week.

Statutory sick pay will also increase on 6 April from £96.35 per week to £99.35 per week. The lower earnings limit for eligibility for these payments is also increasing from £120 to £123 per week, for the first time in two years.

Health and Social Care Levy

As well publicised, the new Health and Social Care Levy will take effect from 6 April 2022. This is a 1.25% levy which will operate in the same way as National Insurance contributions by increasing both the main and additional rates of Class 1, Class 1A, Class 1B and Class 4 National Insurance.

If your business pays Class 1, Class 1A or Class 1B National Insurance contributions, you’ll need to start paying the 1.25% increase in contributions unless your employee falls into one of the following categories and earns less than £50,270 (or £25,000 for Freeport employees) per year. The existing reliefs will apply for:

• apprentices under the age of 25
• employees under the age of 21
• armed forces veterans
• employees in Freeports

HM Revenue & Customs is also asking employers, where appropriate, to include the following message on payslips:

‘1.25% uplift in NICs, funds NHS, health & social care’.

Holidays

To celebrate the Queen’s Platinum Jubilee, the late May bank holiday, which normally would have fallen on 30th May 2022, will move to Thursday 2nd June 2022 and there will be an additional bank holiday on Friday 3rd June 2022.  You should check the wording of employees’ contracts to understand their obligations; there might not be the automatic right to the additional day, or to time off on fixed bank holidays.

Family friendly rights

An Employment Bill was announced in 2019 and is expected to be passed in 2022. This includes the introduction of statutory neonatal leave and pay for parents of babies requiring neonatal care, and the extension of the redundancy protection period for employees on maternity leave to up to six months after they return to work.

The government has confirmed the introduction of carer’s leave as a new statutory right. This will entitle employees with caring responsibilities to take up to one week of unpaid leave per year from day one.

Third party harassment

Changes to harassment laws are expected in 2022, including an extension to the time period employees have for raising tribunal claims and enhanced protection against harassment from third parties, such as clients, customers and members of the public. You should be prepared to undertake training and update your policies accordingly.