Employment law April 2022 – key updates for employers - Kuits Solicitors Manchester
  • Insights
  • Employment law April 2022 – key updates for employers

Employment law April 2022 – key updates for employers

Employment law April 2022 – key updates for employers

24th March 2022 - Published by Kuits Employment Team

Living/national minimum wage

Employers paying living/national minimum wage rates need to ensure they implement the new rates for the first pay reference period beginning on or after 1 April 2022.

Increase in National Living Wage (takes effect on 1 April 2022)

  • The NLW for workers (available to those aged 23 and over) increases from £8.91 to £9.50 per hour.

Increase in National Minimum Wage (takes effect on 1 April 2022)

  • The NMW for 21-22 year olds increases from £8.36 to £9.18 per hour.
  • The NMW for 18-20 year olds increases from £6.56 to £6.83 per hour.
  • The NMW for under 18s increases from £4.62 to £4.81 per hour.
  • The NMW for apprentices under 19 years old, or over 19 years old and in the first year of their apprenticeship increases from £4.30 to £4.81 per hour.

Statutory pay increases

Increases in statutory family-related pay, statutory sick pay and statutory redundancy pay.

Employers paying statutory family-related pay or sick pay must ensure employees absent on these types of leave are paid the enhanced rates from the dates set out below. It may also be necessary to update policies reflecting the increased payments.

  • The weekly rate of statutory maternity, paternity, adoption, shared parental and parental bereavement pay increases from £151.97 to £156.66 from 3 April 2022.
  • The weekly rate of statutory sick pay increases from £96.35 to £99.35 from 6 April 2022.
  • The limit on a week’s pay used for calculating statutory redundancy pay (and the unfair dismissal basic award) increases from £544 to £571 from 6 April 2022.

Gender pay gap reporting

The private sector must publish their gender pay gap report by 4 April 2022

Businesses with 250 or more employees are required to report and publish their gender pay gap information each year, but many businesses with less than 250 employees opt to do this anyway.

It is the business’ responsibility to ensure the report is published in a prominent place on their website and on the gov.uk website.

When publishing their data businesses may wish to provide a supportive narrative explaining it. Many businesses that have a clear gender pay gap find it useful either to explain the reason for this, or to set out steps as to what the business is going to do to reduce their gender pay gap.

If you need advice about whether your business is required to produce a gender pay gap report, or assistance producing the report then please contact a member of our employment team.

IR35 off-payroll worker compliance

The rules on off-payroll workers took effect in April 2021, however, HMRC confirmed it would take a light touch on enforcement penalties, unless it had evidence of deliberate non-compliance. Therefore, from 6 April 2022 this light touch approach will no longer apply.

The off pay-roll rules require businesses using independent contractors to take responsibility for assessing whether the independent contractor should be subject to IR35. This is a key shift in where the responsibilities lie. Businesses that fail to correctly assess the employment status of their independent contractors could be fined.

A business’ relationship with its off-payroll workers should be reviewed on a regular basis to ensure the relationship doesn’t fall foul of IR35 rules. The one year mark from the introduction of the rules is a good opportunity for businesses to do this.

If you need advice about the IR35 rules then please contact a member of our employment team. You can also read our article here to understand more about the rules. (Please note the contents if this webpage was produced in anticipation of the IR35 rules being introduced in April 2020, but this was postponed until April 2021 due to the pandemic.)

Subscribe to our mailing list