01/04/22

Rates and thresholds for employers 2022 to 2023

From 06 April 2022, there will be new rates and thresholds for employers to consider, such as national minimum wage and redundancy pay. We have outlined the new rates below:

National Minimum Wage

The rates of National Minimum and National Living Wage will be:

23 and over:                £9.50

21 to 22:                      £9.18

18 to 20:                      £6.83

Under 18:                    £4.81

Apprentice:                  £4.81

The daily accommodation offset rate will be £8.70 (with the weekly accommodation offset rate being £60.90)

Redundancy

The statutory limit on a gross week’s pay for the purposes of calculating redundancy (or a basic award in an unfair dismissal claim) will be £571.

The maximum statutory redundancy payment will be £17,130.

Unfair dismissal

In cases involving unfair dismissal, the new figures will apply where the effective date of termination falls on or after 6 April 2022. The increases are based on the September 2021 retail prices index (RPI) which increased by 4.9% since the previous year.

The new figures are as follows:

  • The limit on a week’s pay will increase from £544 to £571.
  • The maximum compensatory award for unfair dismissal will increase from £89,493 to £93,878.
  • The minimum basic award for certain unfair dismissals (including health and safety dismissals) will increase from £6,634 to £6,959.

Discrimination claims

The Court of Appeal case of Vento v The Chief Constable of West Yorkshire Police [2002] EWCA Civ 1871 established guidelines for the award of compensation for injured feelings and set three bands of potential awards in discrimination claims. For claims presented on or after 6 April 2022, the bands will be as follows:

  • a lower band of £990 to £9,900 (less serious cases);
  • a middle band of £9,900 to £29,600 (cases that do not merit an award in the upper band); and
  • an upper band of £29,600 to £49,300 (the most serious cases), with the most exceptional cases capable of exceeding £49,300

 

Kitsons Solicitors - Rosie Evans

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    01/04/22

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    Kitsons Solicitors - Rosie Evans

    Rosie EvansAssociate

    Rosie is an Associate in our Employment team

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