What are the new employment law rates and limits that came into force in April?

05/05/2022

The statutory employment rates for employees are reviewed and updated in April of each year. In this article, we set out the new rates that have just come into force.

Traditionally, there is an annual increase that affects the statutory rates and limits. These increases are relevant to both employers and employees.

Rates such as the National Minimum Wage and statutory benefits such as Statutory Sick Pay and Statutory Family Friendly Payments are reviewed.

These rates are the figures that are used for calculations to value various different employment claims if these matters are litigated in an Employment Tribunal.

We have set out below some of the main changes:

Statutory payments for time off work

(Each week) April 2021 April 2022
Maternity/adoption pay prescribed rate (max) £151.97 £156.66
Paternity pay (max) £151.97 £156.66
Shared parental pay (max) £151.97 £156.66
Sick pay £96.35 £99.35
Lower earnings limit £120.00 £123.00

 

National Minimum Wage and National Living Wage 

(Hourly) April 2021 April 2022
Apprentices* £4.30 £4.81
Age 16-17 £4.62 £4.81
Age 18-20 £6.56 £6.83
Age 21-22 £8.36 £9.18
National Living Wage (Age 23+) £8.91 £9.50

 

Compensation limits

(Maximum unless stated) April 2021 April 2022
Week’s pay £544.00 £571.00
Statutory redundancy payment: up to 30 weeks’ pay £16,320.00 £17,130.00
Unfair dismissal basic award: up to 30 weeks’ pay £16,320.00 £17,130.00
Unfair dismissal compensatory award** £89,493.00 £93,878.00
Automatically unfair dismissal basic award (min)*** £6,634.00 £6,959.00
Blacklisted employee unfair dismissal basic award (min) £5,000.00 £5,000.00
Failure to reinstate or re-engage: 26 to 52 weeks’ pay £14,144.00 to £28,288.00 £14,846.00 to £29,692.00
Breach of right to be accompanied: up to 2 weeks’ pay £1,088.00 £1,142.00
Breach of flexible working regulations: up to 8 weeks’ pay £4,352.00 £4,568.00
Failure to give written particulars of employment: 2 to 4 weeks’ pay £1,008.00 to £2,176.00 £1,142.00 to £2,284.00
Breach of contract claim in Employment Tribunal £25,000.00 £25,000.00
Failure to inform or consult: collective redundancy**** 90 days’ pay 90 days’ pay
Failure to inform or consult: TUPE transfer**** 13 weeks’ pay 13 week’s pay
Guarantee payment (each day) £30.00 £31.00
Guarantee payment (in any 3 months) £150.00 £155.00

 

Payments on insolvency 

(Maximum) April 2021 April 2022
Arrears of pay (8 weeks’ pay) £4,352.00 £4,568.00
Statutory notice pay (12 weeks’ pay) £6,528.00 £6,852.00
Holiday pay (6 weeks’ pay) £3,264.00 £3,426.00
Statutory redundancy payment or basic award (30 weeks’ pay) £16,320.00 £17,130.00

 

*If under 19 or in first year of apprenticeship (otherwise refer to age bands).

**Maximum compensatory award is lower of statutory limit or 52 weeks’ actual gross pay at the time of dismissal. Limit does not apply where reason for dismissal or redundancy selection is carrying out health and safety activities or making a protected disclosure.

***Dismissals for reason of trade union membership or activities, or acting as a health and safety representative, employee rep, workforce rep or pension scheme trustee.

****Actual gross pay (limit on a week’s pay does not apply).

For any further guidance on these issues or indeed any other employment related matters, please contact Karen South in the Employment Department at ks@portner.co.uk or la@portner.co.uk.