2022 Employment Law Updates: What We Know (and What To Expect)

With a tumultuous 2021 for employers and employees behind us, now is the perfect time to consider the upcoming employment law updates. So, what important changes have been confirmed for 2022, and what interesting changes could be on the horizon?

Minimum Wage

From 1 April 2022 the National Living Wage for workers aged 23+ is due to rise 6.6% from £8.91 to £9.50. Meanwhile, the National Minimum Wage will raise to the following:

  • 21 – 22 year olds : £9.18
  • 18 – 20 year olds : £6.83
  • 16 – 17 year olds : £4.81
  • Apprentice rate : £4.81

However, the impact of any increase will be tapered by the 1.25% increase in national insurance contributions. The increase, set to be rebranded as a ‘Health and Social Care Levy’ in 2023, will mean a £214 annual increase for a worker with a £30,000 salary.

Statutory Pay

Whilst not yet confirmed, the Department for Work and Pensions has proposed increases to the statutory benefit payments. Likely to be implemented from April 2022, statutory maternity, paternity, adoption and shared parental pay are set to rise to £156.66 per week.

Similarly, Statutory Sick Pay should increase to £99.35 per week, however the eligibility to receive it is due to revert to Day 4 of sickness from 25 March 2022, following the expiration of the Coronavirus Act 2020, reinstating the three-day wait to qualify for SSP.

What To Expect

Following a government consultation in 2021 on making flexible working a ‘default position’, a response is expected in the latter half of 2022 which could improve the rights of workers to work flexibly. Similarly, the ‘right to disconnect’ has been discussed throughout Europe and was recently implemented for Belgian civil servants, so expect this concept to come under greater scrutiny in the UK.

Elsewhere, the highly anticipated Supreme Court judgment of Harpur Trust v Brazel is expected soon, which should clarify the holiday entitlement for part-year workers across the country. Holiday entitlement is also on the agenda in the upcoming judgment for Smith v Pimlico Plumbers, determining the entitlement for holiday backpay for workers who were incorrectly treated as self-employed; a judgment that could lead to significant claims for historic breaches.

 

This article was supplied to TBOS by our preferred legal supplier SA Law, for more insights visit their website at https://salaw.com/views-insights/.

 

Image Source: Unsplash

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