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What’s on the horizon for 2022?

What’s on the horizon for 2022?

The People Shed take a look at all the changes coming up in 2022.

National minimum wage increases

The rates for the national minimum wage will increase on 1 April 2022. The hourly rate of the minimum wage will 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.

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

Increase statutory family-related pay and sick pay

The rate of statutory maternity, adoption, paternity, shared parental and parental bereavement pay will increase to £156.66, up from £151.97. The increase normally takes effect on the first
Sunday in April, which in 2022 is 3 April. The rate for statutory sick pay will also rise on 6 April 2022. The new rate will be £99.35, up from £96.35.

Right-to-work checks

From 30 March 2020, temporary guidance on right-to-work checks has been in place to allow employers to conduct checks without seeing the individual face to face. Checks can
be carried out via video and scanned or photo versions of the original required documents can be used.
These temporary measures are due to last only until 5 April 2022. You should look out for new guidance on right-to-work checks that will apply from 6 April 2022 (although it is possible that the temporary guidance will be extended).

Statutory redundancy pay calculations

New limits on employment statutory redundancy pay will come into force on 6 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 weekly pay is subject to a maximum amount (£544 from 6 April 2021). The new amount will be confirmed in the draft Employment Rights (Increase of Limits) Order 2022, which
should be published some time in February.

Manage bank holiday entitlement during Platinum Jubilee

The government has announced an additional bank holiday in 2022 (Friday 3 June), to celebrate the Queen’s platinum jubilee. In addition, the late May bank holiday has been moved to Thursday
2 June. You will need to look at how you will approach the additional bank holiday. This will be determined to some extent by the wording in your employees’ contracts of employment. For example, where the contract entitles employees to take leave on “all bank and public holidays”, the employer will be required to grant the extra day as leave.
Even if you are not contractually obliged to grant the extra day as leave, it may choose to do so as a goodwill gesture to employees (for example in reward of their hard work during the pandemic).
You will need to plan well in advance for potential staffing issues as you may see a spike in requests for annual leave around this time or increased absences.

• Monday 3 January – New Year’s Day (substitute day)
• Friday 15 April – Good Friday
• Monday 18 April – Easter Monday
• Monday 2 May – Early May bank holiday
• Thursday 2 June – Spring bank holiday
• Friday 3 June – Platinum Jubilee bank holiday
• Monday 29 August – Summer bank holiday
• Monday 26 December – Boxing Day
• Tuesday 27 December – Christmas Day (substitute day)

Remember to adjust your employee holiday entitlement if you use an HR system.

For any questions or advice on any of the above matters. Please contact us.

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