Our Head of Employment, Gemma Bailey has taken the time to analyse a multitude of factors to compile the most important employment law updates for the coming year. Read them all here.
Increased National Insurance Contributions
With effect from 6 April 2022 National Insurance contributions for employers and employees will rise by 1.25%. The purpose of the increase is to fund health and social care and from April 2023, the increase will be replaced by a separate health and social care levy and the NIC rates will revert to their current level.
National Minimum Wage
Increased new rates of national minimum wage and national living wage will come into force from 1 April 2022 National Minimum Wage in 2022
· National living wage (age 23 or over): £9.50 per hour
· Age 21 to 22: £9.18 per hour
· Age 18 to 20: £6.83 per hour
· Age 16 to 17: £4.81 per hour
· Apprentice rate: £4.81 per hour
Employment Bill
The Government first proposed an Employment Bill in 2019. However, it has not yet progressed and this may occur in 2022. The following changes are expected to be included in the Bill:
- Neonatal leave – This will be a new right for parents whose babies require neonatal care to take neonatal leave and pay. It is expected that the amount of leave will be one week for every week that the baby is in neonatal care up to a maximum of 12 weeks. This will be paid leave, with parents being entitled to a statutory rate of pay set by the Government each year.
- Unpaid leave for carers – The Government proposed in 2019 to introduce a right for employees with caring responsibilities to take 5 days’ unpaid carer’s leave each year. This would be a day one right for employees, and would allow them to take time off work to provide care, attend appointments, or arrange alternative care for an individual for whom they are responsible.
- Tips – The proposed measures will make it illegal for employers to withhold tips from workers. Tips must be passed on to workers within one month of the tip being paid, without any employer deductions except those required by law. If employers fail to comply with the new rules they may be subjected to fines and workers may be able to bring a claim in the Employment Tribunal.
- The right to request a more predictable employment contract –The right is intended to benefit workers who have irregular hours, such as zero hour workers, by giving them the right to request a more predictable and stable employment contract. The right, if enacted through legislation, would apply to workers once they have accrued 26 weeks’ continuous service.
In addition to the Employment Bill, there are a number of developing areas increasingly in focus that although we cannot say exactly when the changes will take place employers can expect and should be aware of.
Menopause in the Workplace
An inquiry by the House of Commons Women and Equalities Committee into existing discrimination legislation and workplace practices around the menopause closed on 17 September 2021. The inquiry sought views on whether further legislation is required to enable employers to put in place a workplace menopause policy to protect people going through the menopause while at work to address gender equality. The Committee may now seek to change legislation to recognise menopause as a protected characteristic if the outcome of the inquiry shows that the current legislation is not working.
ICO Employment Practices Code
The ICO is reviewing and updating its employment practices code to reflect how working life has changed over the last few years. The increase in working from home has seen an increase in remote monitoring of employees. The use of AI and machine learning has also increased. The ICO has consulted on new guidance on data protection and employment practices and will add to both resources over time covering topics including recruitment and selection, employment records, monitoring of workers, and information about workers' health.
Pay Gap Reporting
The Equality Act 2020 (Gender Pay Gap Information) Regulations 2017 came into force on 6 April 2017. Built into the Regulations is an obligation to review their impact, including an assessment as to whether the Regulations have achieved their objective. That review must be completed by 1 April 2022, five years after the Regulations came into force. The report to be published by the Secretary of State is likely to prompt debate regarding whether the regulations go far enough and are fit for purpose.
Sexual Harassment
On 21 July 2021, the government published its response to the 2019 consultation on workplace sexual harassment. The response confirms that the government will introduce a new duty for employers to prevent sexual harassment and third-party harassment in the workplace, and that it will look closely at the possibility of extending the time limit for all claims under the Equality Act 2010. The government has not yet acted on the proposals.
Flexible Working
On 23 September 2021, the Government published a consultation paper, Making flexible working the default which closed on 1 December 2021. Proposals include a number of measures to broaden the scope of the right to request flexible working, while retaining the basic system involving a conversation between employer and employee about how to balance work requirements and individual needs. The main change would be removing the requirement for 26 weeks' qualifying service, making the right a "day one" right for employees.
