There are approximately 4 million limited companies in the UK, employing up to 21 million full-time employees. UK employment laws are in place to make sure that both employers and employees are protected.
As recruiters continue to push for quality candidates to fill the talent shortage in many sectors, employers will need to take notice of the new changes in the UK’s Employment Law Rates.
Statutory family leave: Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Shared Parental Pay (ShPP), Statutory Parental Bereavement Pay (SPBP) weekly rates will increase to £156.66 per week (from £151.97) on 3rd April 2022.
All eligible employees are entitled to receive Statutory Sick Pay (SSP), however from 6th April 2022, the rate will increase to £99.35 per week (from £96.35). For eligibility purposes, the lower earnings limit (LEL) will increase from £120 to £123 per week; this will represent the first increase in the LEL for two years.
Statutory Redundancy Pay for employees earning above the cap on the value of a week’s pay will also increase to £571 per week (from £544) with effect from 6th April 20222. The overall maximum Statutory Redundancy Pay, based on 20 years’ service at an age multiplier of 1.5, therefore increases to £17,130 (from £16,320).
A successful Claimant’s Basic Award is calculated in the same way as Statutory Redundancy Pay. Where a Claimant is judged to have been unfairly dismissed (other than in automatic unfair dismissal cases), they are entitled to a compensatory award of a maximum of 52 actual weeks’ pay, subject to an overall cap. That capped allowance rises to £93,878 (from £89,493).
The kind of issues that would constitute unfair dismissal include (but aren’t limited to):
The Health and Social Care Levy will again come into effect on the 6th of April 2022. The levy will involve a 1.25% increase in national insurance contributions (NICs), with dividend tax rates increasing by the same percentage rate.
It will be payable by both employers and employees who are subject to Class 1 NICs, and by the self-employed who pay Class 4 NICs.
The levy will ultimately be a new tax, separate from NICs. However, the tax will initially be raised through an increase in NICs. It’s thought as of 2023, this new tax of a 1.25% surcharge will replace the NICs increase, which is the largest increase in UK taxation in 40 years.
Our successful coaching service is tailored to each individual’s needs and includes preparation for specialist interviews for highly sought-after roles in Tier One firms. Contact us if you are looking for dynamic and experienced executives.