Changes in Employment Law for April 2022

1 April 2022

The per hour rate for National Minimum/Living Wage for workers will see a significant increase on this date. These are as below:

• For 23 and over; from £8.91 to £9.50 (6.62% increase)
• For 21 or 22 year olds; from £8.36 to £9.18 (9.81%​ increase)
• For 18 to 20-year olds; from £6.65 to £6.83 (4.12% increase)
• For Under 18 (above compulsory school age); from £4.62 to £4.81 (4.11% increase)
• Apprentices under 19 (or over 19 in year 1 of apprenticeship; from £4.30 to £4.81 (11.86% increase)

It remains to be seen whether the significant pay increases will have a knock-on effect to increase pay levels that are above National Minimum/Living Wage levels.

3 April 2022

Family friendly leave

There will be a 3.09% increase in the following statutory family payments:

• Statutory maternity pay
• Statutory adoption pay
• Statutory paternity pay
• Statutory shared parental pay
• Statutory parental bereavement pay

These rates will increase to £156.66, up from £151.97.

6 April 2022

Statutory Sick Pay (SSP)

Workers will also see a rise in Statutory Sick Pay by 3.11%.  The new rate will be £99.35, up by £3 (currently £96.35).

This increase may effect employers who offer enhanced or company sick pay schemes and this remains to be seen.

Employment Tribunal award limits increase

The Employment Rights (Increase of Limits) Order has been revised for 2022 and increases in compensation have now been confirmed.

• Compensatory award for unfair dismissal; the maximum award will rise from £89,493 to £93,878 (there is an additional cap of one year’s salary on  this compensatory award)
• Statutory guarantee pay; the limit on the daily amount will rise from £30 to £31
• Basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will rise from £6,634 to £6,959
• Statutory redundancy payments; a weeks’ pay is currently £544 per week and will rise to £571

If you’re unsure as to how changes to the statutory pay may affect you or if you require advice on any aspect of employment law, then please contact our employment team on 0116 208 1495.