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April Employment Law Developments
The End of the IR35 “Grace Period”
We published an article in March 2022 in which we provided guidance on the changes to the reformed IR35 rules. April 2022 will mark the end of the grace period for the off-payroll working rules for the private sector. HMRC will now fine firms for inaccuracies in their off-payroll working reporting.
Gender Pay Gap Reporting 2022
Private companies with over 250 employees must have reported their 2021 date by the 5 April 2022.
In March 2022, we published the article, “What is the Gender Pay Gap, and what are the changes for 2022?”.
Employers failing to report on time may be investigated by the Equality and Human Rights Commission (EHRC), who monitors human rights, protecting equality across nine grounds - age, disability, sex, race, religion and belief, pregnancy and maternity, marriage and civil partnership, sexual orientation and gender reassignment.
The EHRC can serve a notice to the company to require them to provide the information and documents as part of this investigation. Failure to comply with this notice is in itself an offence.
If the investigation concludes that the organisation has breached the regulations. In that case, the EHRC can issue an unlawful notice, which can require the organisation to produce a plan to tackle any gap presented within 14 days. Failure to comply with this can lead to a court order requiring compliance, with additional failure potentially resulting in an unlimited fine and summary conviction.
Statutory Payments
With effect from the 6 April 2022, the following changes include rises in national minimum wage rates, increases to statutory redundancy pay and maternity pay, and compensation limits. Employers should check their pay rates against the new minimum rates and ensure that, where necessary, they increase statutory payments for the first pay reference period beginning on or after 1 April 2022. Please note that these apply only in England, Scotland and Wales.
Compensation limits
|
Payments |
From 6 April 2021 |
From 6 April 2022 |
|
Limit on a week's pay for calculating redundancy and unfair dismissal basic award |
£544 |
£571 |
|
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks' pay subject to the limit on week's pay) |
£16,320 |
£17,130 |
|
Maximum compensatory award for unfair dismissal |
A year's pay subject to max cap of £89,493 |
A year's pay subject to max cap of £93,878 |
Family-friendly payments
|
Payments |
From 4 April 2021 |
From 3 April 2022 |
|
Statutory shared parental pay (ShPP) Statutory rate or 90% of employee's weekly earnings if this is lower. |
£151.97 |
£156.66 |
|
Statutory maternity pay (SMP) First six weeks – 90% of employee's average weekly earnings. Remaining weeks at the statutory rate or 90% of employee's weekly earnings if this is lower. |
£151.97 |
£156.66 |
|
Statutory adoption pay (SAP) First six weeks – 90% of employee's average weekly earnings. Remaining weeks at the statutory rate or 90% of employee's weekly earnings if this is lower. |
£151.97 |
£156.66 |
|
Statutory paternity pay (SPP) Statutory rate or 90% of employee's weekly earnings if this is lower. |
£151.97 |
£156.66 |
|
Statutory parental bereavement pay (SPBP) Statutory rate or 90% of employee's weekly earnings if this is lower. |
£151.97 |
£156.66 |
Statutory sick pay
|
Payment |
From 6 April 2021 |
From 6 April 2022 |
|
Statutory sick pay |
£96.35 |
£99.35 |
|
Lower earnings limit (per week) |
£120 |
£123 |
National minimum wage
|
Age |
From 1 April 2021 |
From 1 April 2022 |
|
Workers aged 23 and over (National Living Wage)* |
£8.91 an hour |
£9.50 an hour |
|
Workers aged 21-22* |
£8.36 an hour |
£9.18 an hour |
|
Development rates for workers aged 18–20 |
£6.56 an hour |
£6.83 an hour |
|
Young workers rate for workers aged 16–17 |
£4.62 an hour |
£4.81 an hour |
|
Apprentices under 19, or over 19 and in first year of the apprenticeship |
£4.30 an hour |
£4.81 an hour |
For assistance with your IR35 assessments and planning, gender pay gap reporting and review of your current remuneration policies, don't hesitate to contact IHRS. Email HRhelp@ihrsolutions.co.uk, call 01604 709509 or visit the website.