Hand Morgan & Owen Employment Bulletin – Spring 2022

NATIONAL MINIMUM WAGE RATES

From 1 April 2022 these increase as follows:

• For workers aged 25 or over from £8.91 to £9.50 per hour
• For workers aged 21 to 24 from £8.36 to £9.18 per hour
• For workers aged 18 – 20 from £6.56 to £6.83 per hour
• For workers under 18 from £4.62 to £4.81
• For apprentices from £4.30 to £4.81

This is a significant increase of over 6½%.  Employers should carefully review the hours and pay of their lower paid staff to ensure they do not inadvertently find themselves breaching the National Minimum Wage Regulations.  (Employers should also be aware of the requirement to keep sufficient records to demonstrate that they are paying their staff at a rate at least equivalent to the National Minimum Wage).

LIMITS ON TRIBUNAL AWARDS AND STATUTORY PAYMENTS

From 6 April 2022 there will be an increase on compensation limits for Tribunal Awards and other statutory payments.

The calculation of a week’s pay for the purposes of a statutory redundancy payment or the Basic Award in the Employment Tribunal has had its cap increased from £544 to £571.  This means that the maximum statutory redundancy payment is now £17,310

The maximum Compensatory Award for unfair dismissal has also been increased at the same time (this deals with compensation for loss of earnings and other contractual benefits) from £89,493 to £93,878.

COVID AND SELF ISOLATION

In England the legal requirement to self-isolate has been removed from 24 February 2022, as well routine contact tracing.

Government guidance remains to self-isolate for at least 5 days if people have symptoms or have tested positive.  ACAS recommends that employers should review Government guidance and liaise with staff to decide what staff should do and ideally agree a policy with staff on self-isolation so that it is clear for all.  Employers should bear in mind their obligations to keep the workplace a safe environment for everyone.

RESTRICTION OF PROCEEDINGS ORDER

Under the Employment Tribunals Act the Attorney General can apply for a Restriction of Proceedings Order to restrict vexatious Claimants (the County Court has a similar provision known as a Civil Restraint Order).

In the case of HM Attorney General v Taheri the EAT imposed an indefinite RPO against a Claimant who had a pattern of bringing discrimination claims following unsuccessful job applications and then seeking a nuisance payment.  If he did not get a settlement, he generally did not take his claim any further forward or threatened adverse publicity.  Most of his claims were withdrawn before a hearing or settled, in two cases that went to a hearing he lost and faced a costs order.

Whilst the Employment Appeals Tribunal  could not discount the possibility that someone in the Claimant’s circumstances would face discrimination in a competitive labour market, the history of the litigation pursued by him meant an indefinite RPO was appropriate (the Claimant had brought 44 Employment Tribunal claims in the period 2012 – 2020).

TIPS AND GRATUTIES

The Government has announced that it is intending to bring in new legislation “as soon as Parliamentary time allows” placing a legal requirement on employers to pass all tips, gratuities, and service charges to workers without any deductions.

The proposed legislation rule will place a requirement on employers to distribute tips in a fair and transparent manner and it is proposed there will be a right for workers to make a request for information concerning an employer’s tipping record to enable them to bring forward a credible claim to an Employment Tribunal.

Whilst this legislation may be a way off yet, it is anticipated that it would take 12 months for the rules to come into force after the legislation has been passed, employers may wish to consider their existing arrangements with regards to tips and gratuities.

30 March 2022

For advice and assistance in respect of Employment matters contact Patrick Nelson, Associate on 01785 211411.

Disclaimer

The contents of this article are for the purpose of general awareness only.  They do not purport to constitute legal or professional advice.  The law may have changed since this article was published.  Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.