The Danton Guide to Employment Law Changes: April 2022

 

With plenty of employment law developments coming into effect in April 2022,

business owners and HR professionals need to ensure that their organisations understand the changes and any implications. We’ve put together the following roundup to help you keep your policies up-to-date

 

Publish your Gender Pay Gap Report

 The gender pay gap refers to the difference between the average earnings of men and women across a workforce.

 

Gender pay gap reporting came into effect in 2017. Since then, if you have over 250 employees you must comply with reporting. Calculations are based on a payroll date drawn from a specific “snapshot date”.

 

Public sector employers use a “sanpshot date” of 31st March and Private and Voluntary sector employers use a “snapshot” date of 5th April. They must then publish their gender pay gap information by the following year. The gender pay gap reporting deadline is 30th March 2022 for public sector employers and 4th April 2022 for private and voluntary sector employers.

 

Organisations must publish reports on their website and the government portal.

 

Action required:

  • Publish your organisations gender pay gap report on the gender pay gap reporting portal here

  • Provide a narrative around any gender pay gap

  • Take steps to close the gender pay gap in your organisation

 

Implement Statutory Wage Increases

 The rates of national minimum wage increase on 1st April 2022.

The hourly rates of the statutory minimum wage increase from:

  • £8.91 to £9.50 for workers aged 23 and over (the national living wage);

  • £8.36 to £9.18 for workers aged 21 or 22;

  • £6.56 to £6.83 for workers aged 18 to 20;

  • £4.62 to £4.81 for workers aged under 18 who are no longer of compulsory school age; and

  • £4.30 to £4.81 for apprentices under 19, or over 19 and in the first year of the apprenticeship.

Employers should check their pay rates against the new minimum wage rates and ensure that, where necessary, they increase remuneration for the first pay reference period beginning on or after 1st April 2022.

Action required:

  • Set a reminder before your employees’ birthday, to update their salaries in good time

  • Check to make sure that deductions for uniforms or Covid tests don’t take their salary

  • Check rates of pay, against the new minimum wage and ensure that the remuneration for the first pay reference period on or after 1st April 2022 is increased

  • Send a letter advising your employees of a rise in their national minimum wage rate

  • Review your organisations pay rates against the national minimum wage.

Comply with Statutory Family Friendly Payment increases

 Family- related pay will increase in April 2022. This will cover all weekly rates of statutory maternity, paternity, shared parental, and parental bereavement leave. This will increase from £151.97 to £156.66 on 3rd April 2022.

Action Required: 

  • Review your family-friendly policies and update any information relating to the rates

  • Communicate changes to employees

Increase Statutory Sick Pay (SSP)

The weekly rate of statutory sick pay will increase from £93.35 to £99.35 on 6th April 2022.

Action Required:

  • Review your sickness absence procedure and related policy with new rates of pay.

Review your IR35 Compliance

 IR35 rules on off-payroll working within the private sector came into effect on 6th April 2021. But HMRC agreed to be lenient with enforcement penalties during the first 12 months. This period ends on 6th April 2022.

IR35 rules outline that if an organisation engages a contractor, they are responsible for determining their employment status and assessing whether IR35 applies. If IR35 does apply, the organisation that pays the individual’s fees is deemed to be their employer for tax and national insurance purposes.

Action required:

  • Review your IR35 status determinations to check their accuracy and update where required

  • Communicate any changes to your contractors.

Familiarise Yourself with Changes to Right to Work Checks

 Temporary measures to allow employers to make remote document checks when assessing right to work, was due to end on 6th April 2022, but this has been extended to the end of September 2022.

Some British and Irish citizens are unable to prove their right to work through the Home Office online service, so the employer must carry out a document check. A digital identity checking service is being introduced so that British and Irish citizens who have a valid passport or Irish passport card, can prove their identity remotely even after the extension ends. Employers still have the option to conduct manual checks of original documents.

The new service is provided via certified Identification Document Validation Technology (IDVT) providers, acting on behalf of employers. But employers must ensure that their provider is certified. Legislation introducing this new protocol comes into effect on 6th April 2022.

In addition, people who hold a biometric residence card, biometric residence permit or frontier worker permit must use the Home Office online service to evidence their right to work. Physical cards are no longer acceptable for right to work checks. This also comes into effect on 6th April 2022.

Action Required

  • Update your interview process and communicate any changes

  • Review your immigration policy

 

Update your Statutory Redundancy Pay Calculations

New limits on employment statutory redundancy pay come into effect on 6th April 2022.

Employers that dismiss employees for redundancy must pay those with two years’ service an amount based on the employee’s weekly pay, length of service and age.

The Employment Rights (Increase of Limits) Order 2022 sets the new limit at £571 per week – an increase from £544 in the 2021/22 rate.

Action Required:

  • Ensure that calculations for statutory redundancy payments are made based on this new maximum amount for redundancy dismissals on or after 6th April 2022

  • Update redundancy policies

 

Review the Increase Limits for Compensation at Employment Tribunals

The Employment Rights (Increase of Limits) Order 2022 (SI 2022/182), outlines changes to a number of limits to tribunal awards and other amounts payable under employment legislation. The new limits apply where the event that gives rise to the award or payment occurs on or after 6th April 2022.

 

The Chartered Institute of Payroll Professionals (CIPP) has produced the following table outlining the rates:

 

Danton are on Hand to Review Policies, Procedures and Staff Contracts.

 

With all of these changes to rules and rates, you may need some extra support and guidance.

Contact Danton and discover the benefits and peace of mind we can bring to you and your organisation.

 

Book a free discovery call: info@dantonhr.com

 

Nicola Roke