2021 was an eventful year for employment law, with the ongoing impacts of Covid-19, the winding down of the much relied on Furlough Scheme, and Brexit, all significantly shaping and changing legislation. So what changes to employment law can we anticipate in the rest of 2022?
Changes to statutory rates of pay
The Department for Work and Pensions has published its proposed increases to the statutory benefit payments, which are expected to apply from April 2022. Employers and payroll providers should In particular note:
- Statutory sick pay increase to £99.35 per week.
- Statutory maternity, paternity, adoption and shared parental pay together with maternity allowance increase to £156.66 per week.
Changes to National Minimum Wage(NMW), living wage and national insurance
From 1 April 2022, the NLW for workers aged 23 and over will increase from £8.91 to £9.50.
NMW rates will increase as follows:
- 21 – 22 years old: from £8.36 to £9.18.
- 18 – 20 years old: from £6.56 to £6.83.
- 16 – 17 years old: from £4.62 to £4.81.
- Apprentice rate: from £4.30 to £4.81.
- Accommodation offset: £8.70.
Rise in National Insurance Contributions (NICs)
However, the government has also announced that NICs will rise by 1.25% for most workers from 6 April 2022, to increase funding for the NHS and the social care sector.
Gender Pay Gap Reporting
Organisations employing 250 or more employees must publish an annual report containing data on their gender pay gap. Enforcement of the reporting deadlines was extended in 2021 due to the pandemic, however in 2022 the deadlines are expected to revert to the normal timescales, i.e.
- For public sector employers: the deadline is 30 March 2022 with a snapshot date of 31 March 2021;
- For private sector employers and voluntary organisations: the deadline is 4 April 2022 with a snapshot date of 5 April 2021
Return to full right-to-work checks
Right to work checks were adjusted temporarily on 30th March 2020 in response to the challenges of the pandemic, enabling the process to take place remotely and in a Covid-secure way.
The current guidance is that on 5 April 2022 (inclusive), these guidelines will change, and employers will need to revert back to full right to work checks with original documents in order to avoid financial penalties.
It is important to note: you retrospective checks will not be required on employees who had a COVID-19 adjusted check between 30 March 2020 and 5 April 2022 (inclusive). Employers will have a defence against a civil penalty if the check undertaken during this period complied with the guidance at the time.
Mandatory Vaccination U Turn
At the end of 2021, regulations came into force requiring workers in the NHS and Social Care to be fully vaccinated against Covid-19.
Individuals who were going to need proof of full vaccination were:
- Frontline staff
- Non-clinical staff that still have face-to-face, direct contact with service users and patients, such as Receptionists, Porters etc.
These regulations were going to come into force on 1st April 2022 to provide the health and care sector with enough time to implement the requirement. However as a result of the concerns of staffing issued in the sector, the Government is expected to revoke the mandate making vaccinations compulsory altogether.
Later in 2022:
Employment Bill
The Queen’s speech in December 2019 brought the Government’s proposed plans for an Employment Bill to light. Throughout 2021, various government consultations further developed the plans, and this bill will be passed ‘when parliamentary time allows’, so we can anticipate further developments this year.
It is expected to introduce:
- A new single enforcement body to ensure that vulnerable workers are better protected and informed of their rights,
- Extended protection against redundancy for pregnant women and new parents;
- Neonatal leave and pay (up to 12 weeks);
- Unpaid carers leave (1 week);
- Changes to flexible working rights;
- A right for workers with irregular hours (such as zero-hours contract) to request a more predictable contract after 26 weeks service; and
- Provisions to ensure employers pass on all tips and service charge to their workers in full.
Sexual harassment in the workplace
Currently, legislation surrounding workplace harassment highlights that if a harassment incident occurs, employers will have a defence in court where they can show that they took all reasonable steps to prevent it from happening.
In July 2021, following a consultation regarding Workplace Sexual Harassment, the Government highlighted its future plans to develop the existing law by implementing ‘positive proactive steps to make the workplace safer for everyone’. These steps will be implemented ‘when parliamentary time allows’, so we can expect developments on this in 2022.
The changes:
- The Government now plan to enhance the existing law by enforcing a positive duty on employers to actively take all reasonable steps to prevent harassment in the workplace.
- Workplace protections will also extend where harassment occurs via a third party in the workplace (such as by a client or customer).
- The government are also considering extending time limits for those bringing sexual harassment cases under The Equality Act 2010 from 3 months to 6 months, which will afford victims more time to bring a valid claim before court.
The Government plans to publish a new statutory code of practice along with guidance for employers on how to comply with this new duty. For now, employers may want to consider reviewing their harassment policies and procedures to ensure that adequate preventative measures are in place to protect liability.
Restrictions on confidentiality agreements and NDA’s
NDA’s are an integral part of employment contracts and settlement agreements in order to prevent sensitive business information being shared by employees. However, in 2019, the government noted the harm caused where some employers wrongfully use confidentiality clauses to prevent victims of workplace harassment or discrimination from speaking out.
The response to the consultation established that, when parliamentary time allows, legislation would be introduced that:
- Ensures that a confidentiality clause cannot prevent an individual disclosing to the police, regulated health and care professionals or legal professionals;
- Ensures the limitations of a confidentiality clause are clear to those signing them;
- Improves independent legal advice available to an individual when signing a settlement agreement;
- Produces guidance on drafting requirements for confidentiality clauses; and,
- Introduces new enforcement measures for confidentiality clauses that do not comply with legal requirements.
Employers should watch this space to keep up to date with these reforms and proposals as they will impact the recommended approach to entering into confidentiality agreements during the course of employment and on termination of employment.
For more advice on any of the issues raised in this blog please contact our Employment lawyers through our online contact form.
