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.

About the author

Laura is a HR professional with 20 years’ experience with Financial Services, the majority of which has been within insurance. In her role with UKGI Group, Laura provides objective support to firms on employment law and HR issues. She uses her interpersonal skills and knowledge to work with firms to help them develop strong and resilient HR strategies and establish healthy organisational cultures. Laura’s clients receive personalised support with a real can-do approach.

Laura is an Associate of the Chartered Institute of Personnel and Development (CIPD). She holds a Diploma Professional Development Scheme.

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