A guide to future employment and immigration law.
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In the Pipeline - April 2022
Overview
Now Reading
Employment
Legislation
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Flexible working
December 2021 onwards
- The Government has published a consultation on making the right to request flexible working available from the start of employment (currently only employees with at least six months' service have the right to request flexible working). The consultation also considers whether the reasons for refusing a flexible working request should be revised, and whether employees should be able to make a request more than once every 12 months.
- The consultation closed on 1 December 2021. The Government's response is awaited.
- The Government has published a consultation on making the right to request flexible working available from the start of employment (currently only employees with at least six months' service have the right to request flexible working). The consultation also considers whether the reasons for refusing a flexible working request should be revised, and whether employees should be able to make a request more than once every 12 months.
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Financial Services Regulation
1 January 2022 onwards
- Under the new Investment Firms Prudential Regime (IFPR) firms will be required to introduce rules relating to pay for employees who are "material risk takers", including the ability to apply malus or clawback to bonuses in certain circumstances.
- The rules apply in respect of performance years beginning on or after 1 January 2022.
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National Minimum Wage and National Living Wage
1 April 2022
- The hourly rates of the national living wage and the national minimum wage increase in April each year. The new hourly rates from 1 April 2022 will be:
- £9.50 (rising from £8.91) for workers aged 23 or over
- £9.18 (rising from £8.36) for workers aged 21 to 22
- £6.83 (rising from £6.56) for workers aged 18 to 20
- £4.81 (rising from £4.62) for workers aged under 18
- £4.81 (rising from £4.30) for apprentices.
- The hourly rates of the national living wage and the national minimum wage increase in April each year. The new hourly rates from 1 April 2022 will be:
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Health and Social care Levy
6 April 2022
- A new health and social care levy will be introduced across the UK to help fund reforms to the NHS and care sector. The tax will begin as an increase of 1.25 percent in both employer and employee National Insurance Contributions ("NICs") from 6 April 2022 until 5 April 2023.
- Employers should ensure their internal or external payroll will reflect the increase from 6 April 2022. HMRC is also encouraging employers to include a note on payslips saying "1.25% uplift in NICs, funds NHS, health & social care" for employees who have to pay the increased contribution between 6 April 2022 and 5 April 2023.
- From April 2023, the levy will become a separate tax on earnings, calculated in the same way as NICs and will need to be reported as a new item through the payroll.
- A new health and social care levy will be introduced across the UK to help fund reforms to the NHS and care sector. The tax will begin as an increase of 1.25 percent in both employer and employee National Insurance Contributions ("NICs") from 6 April 2022 until 5 April 2023.
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Unfair Dismissal and Statutory Redundancy Pay
6 April 2022
- The maximum compensatory award for unfair dismissal will increase from April from £89,943 and a year's pay to the lower of £93,878 and a year's pay
- The maximum amount of a week's pay for calculating the unfair dismissal basic award and statutory redundancy pay will increase from £544 to £571.
- The maximum compensatory award for unfair dismissal will increase from April from £89,943 and a year's pay to the lower of £93,878 and a year's pay
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Disability Reporting
8 April 2022
- The Government has published a consultation on disability workforce reporting, which seeks information on current employer practice and possible approaches to compulsory disability reporting. The consultation closes on 8 April 2022.
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Statutory Sick Pay
11 April 2022
The weekly rate of statutory sick pay is set to increase to £99.35 (from the current £96.35).
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Statutory Maternity, Paternity, Adoption, and Shared Parental Pay
11 April 2022
The weekly rate of statutory maternity, paternity, adoption and shared parental pay is set to increase to £156.66 (from the current £151.97).
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Employment Status
No date
- Following the publication of the Independent Review of Employment Practices in the Modern Economy (known as the Taylor Review) in 2017, the Government published the Good Work Plan in 2018, setting out a number of reforms aimed at improving the position of workers including:
- a right for zero-hours workers to request a more stable contract
- refining the employment status test and developing an online employment status tool
- making it easier for casual workers to establish continuity of employment (by increasing the gap required between contracts for breaking continuity from one week to four weeks).
- The Government has consulted on specific measures to improve protection for zero hours workers including proposals for compensation for cancelled shifts, minimum notice of working hours and the right to move onto a fixed hours contract.
- The Government has also consulted on extending the ban on exclusivity clauses in employment contracts (which currently only applies in relation to zero hours contracts) to low-paid workers (those earning under £120 per week), so that they could not be prevented from seeking work elsewhere.
- The Government has not given a date for when the above changes are likely to be introduced.
- Following the publication of the Independent Review of Employment Practices in the Modern Economy (known as the Taylor Review) in 2017, the Government published the Good Work Plan in 2018, setting out a number of reforms aimed at improving the position of workers including:
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Restrictive Covenants
No date
The Government is consulting on proposed changes to non-compete covenants. There are two options under consideration: (i) requiring that the employer pays part of the employee's salary during a non-compete period or (ii) banning non-compete covenants altogether. The consultation closed on 26 February 2021 and the Government's response is awaited.
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Changing terms
No date
The Government has announced that it will introduce a statutory Code of Practice on the use of "fire and rehire" to change terms of employment. The code will set the steps which employers should follow when seeking to change terms, including meaningful consultation. Where an employer fails to follow the Code, the Employment Tribunal will have the power to increase compensation awarded for any relevant claim by up to 25%.
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Sexual Harassment
No date
- In spring 2018, the Equality and Human Rights Commission (EHRC) published a report, Turning the tables: ending sexual harassment at work, which made a number of recommendations to strengthen the protection for victims of sexual harassment.
- The Government has committed to develop a statutory code of practice on sexual harassment and in 2019 consulted on further measures to address sexual harassment at work.
- In July 2021 the Government responded to the sexual harassment consultation and confirmed that it will introduce a new duty for employers to prevent sexual harassment and third party harassment in the workplace and will consider extending the time limit for claims from three to six months. These changes will be subject to further consultation on the detail.
- In spring 2018, the Equality and Human Rights Commission (EHRC) published a report, Turning the tables: ending sexual harassment at work, which made a number of recommendations to strengthen the protection for victims of sexual harassment.
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Discrimination
No date
- In July 2021 the Women and Equalities Committee launched an inquiry into current legislation and workplace practices in relation to the menopause, to seek views on whether employers should be required to put in place a workplace menopause policy. The inquiry closed on 17 September 2021.
- In July 2021 the Government published a National Disability Strategy aimed at improving the lives of disabled people, including plans for improving support for employers. Further proposals are expected in mid-2022.
- In July 2021 the Women and Equalities Committee launched an inquiry into current legislation and workplace practices in relation to the menopause, to seek views on whether employers should be required to put in place a workplace menopause policy. The inquiry closed on 17 September 2021.
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Diversity Reporting
No date
- In August 2018, the Equality and Human Rights Commission (EHRC) published a report on disability and ethnicity pay gaps and progression. The EHRC plans to produce guidance for employers on collecting, using and reporting data on employee ethnicity and disability.
- The Government has also consulted on ethnicity pay gap reporting and this is likely to be introduced in the future although no date has been given.
- In August 2018, the Equality and Human Rights Commission (EHRC) published a report on disability and ethnicity pay gaps and progression. The EHRC plans to produce guidance for employers on collecting, using and reporting data on employee ethnicity and disability.
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Settlement and Confidentiality
No date
- In 2019, the Government consulted on the use of confidentiality provisions in settlement agreements in discrimination and harassment cases. The Government has responded to this consultation and stated that it will legislate to:
- ensure that settlement agreements will not prevent disclosures to the police or healthcare or legal professionals
- require confidentiality clauses in employment contracts and settlement agreements to set out their limitations clearly
- require individuals to take legal advice on the confidentiality provisions in a settlement agreement.
- In 2019, the Government consulted on the use of confidentiality provisions in settlement agreements in discrimination and harassment cases. The Government has responded to this consultation and stated that it will legislate to:
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Redundancy and Pregnancy/Maternity Leave
No date
- Employees who are made redundant during maternity leave must be offered a suitable alternative vacancy if there is one.
- Following a consultation in 2019, the Government confirmed that it will extend this redundancy protection so that it begins when the employee notifies the employer of the pregnancy and ends six months after the end of the maternity leave. The equivalent redundancy protection for adoption leave will be extended until six months following the end of adoption leave, and similar extensions will apply in relation to shared parental leave. No date has been given for when this will come into effect.
- Employees who are made redundant during maternity leave must be offered a suitable alternative vacancy if there is one.
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Maternity/Adoption/ Shared Parental and Parental Leave
No date
- The Government has consulted on measures to support working families including:
- how to improve paternity and shared parental leave and pay, including the possibility of dedicated "pots" of leave for each parent
- requiring employers with 250 or more employees to publish their family related leave and pay policies on their website.
- The Government's response to the consultation is awaited.
- The Government has consulted on measures to support working families including:
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Neonatal leave and pay
No date
The Government is to introduce a new entitlement to up to 12 weeks' neonatal leave and pay for parents of premature babies. No date has yet been given for when this will come into effect.
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Carers' leave
No date
- The Government consulted in 2020 on a new form of unpaid statutory leave for employees with unpaid caring responsibilities, such as care of an elderly relative.
- The Government has published its response to the consultation which confirms that it will introduce a new right for carers to take unpaid leave of one week per year, to help manage their caring responsibilities. There is no date yet for when this will come into effect.
- The Government consulted in 2020 on a new form of unpaid statutory leave for employees with unpaid caring responsibilities, such as care of an elderly relative.
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Listed companies
No date
The Government has consulted on audit and corporate governance reforms for listed companies and larger private companies which include new directors' duties relating to risk management, and proposals to claw-back directors bonuses if the company collapses or there are serious director failings within two years of the bonus payment. The consultation closed in July 2021.
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Enforcement of employment rights
No date
The Government has announced that it will create a single enforcement body for employment rights which will enforce national minimum wage, labour exploitation and modern slavery, holiday pay for vulnerable workers and statutory sick pay. The timing for this change has not been specified.
Immigration
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Entry requirements for business visitors
1 January 2021 onwards
- Business visitors from outside the UK and Ireland (including EU and Swiss nationals) are required to qualify for entry under the visitor rules, with activities subject to strict limits, including a prohibition on undertaking productive work.
- Confirmation of the purpose, duration as well as funds and accommodation available for business trips may be checked at UK border control.
- Our interactive map shows the rules which apply in different European countries.
- Business visitors from outside the UK and Ireland (including EU and Swiss nationals) are required to qualify for entry under the visitor rules, with activities subject to strict limits, including a prohibition on undertaking productive work.
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End of Coronavirus (COVID-19) Concessions to UK visa applicants and visa holders
Late 2021 onwards
- Various concessions were introduced to assist UK visa holders and visa applicants affected by the COVID-19 pandemic including the 'exceptional assurance' for individuals who were not able to leave the UK prior to their visa expiry date.
- Some of these concessions are being phased out, starting from 30 September 2021 onwards.
- Various concessions were introduced to assist UK visa holders and visa applicants affected by the COVID-19 pandemic including the 'exceptional assurance' for individuals who were not able to leave the UK prior to their visa expiry date.
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Immigration sponsored visa reforms
Late 2021 onwards
- Following Brexit, European Economic Area (EEA) and Swiss citizens (referred to here as "EU nationals"), and their family members who were not resident in the UK prior to 31 December 2020 are now subject to UK immigration controls in the same way as non-EU nationals.
- A new points-based immigration system was introduced in December 2020, which extended to cover EU nationals who arrive in the UK after 1 January 2021. Employer sponsorship under the Skilled Worker and Intra Company Transfer visa categories are key routes for work visas under the new regime.
- The Government has set out its plan to make changes to the sponsorship system in its sponsorship roadmap policy paper with reforms to the sponsorship system due from 2022 onwards through to 2024.
- The planned changes include increasing processing speed for sponsor licence applications and enhancing immigration sponsorship compliance systems.
- Following Brexit, European Economic Area (EEA) and Swiss citizens (referred to here as "EU nationals"), and their family members who were not resident in the UK prior to 31 December 2020 are now subject to UK immigration controls in the same way as non-EU nationals.
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Expansion of Youth Mobility Scheme visa route
1 January 2022 onwards
- The Youth Mobility Scheme visa route allows 18- to 30-year-olds to come to the UK to work in any role for a two-year duration.
- Since 1 January 2022, the route was extended to eligible applicants from Iceland and India, in addition to Australia, Canada, Monaco, New Zealand, San Marino, Hong Kong, Japan, South Korea and Taiwan.
- Applicants from India must hold a degree level qualification or have a minimum of three years' work experience in a skilled role.
- The Youth Mobility Scheme visa route allows 18- to 30-year-olds to come to the UK to work in any role for a two-year duration.
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Closure of Tier 1 Investor visa route and reform of Innovator route
17 February 2022 onwards
- The Tier 1 Investor visa route which catered to high-net-worth individuals with at least £2 million to invest in the UK has now closed to new applicants with effect from 17 February 2022.
- Applications to extend any existing visas under this route must be submitted by 17 February 2026 and applications for indefinite leave to remain must be submitted by 17 February 2028.
- The Home Office has announced that it intends to amend the existing Innovator visa category to cater to investment-related migration in Autumn 2022.
- The Tier 1 Investor visa route which catered to high-net-worth individuals with at least £2 million to invest in the UK has now closed to new applicants with effect from 17 February 2022.
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Introduction of new visa routes
Spring 2022 onwards
- A new High Potential Individual visa route is being introduced for recent graduates from a specified list of top global universities who want to work or look for work in the UK following successful completion of their degree. This route will not require employer sponsorship.
- A new “scale-up” stream for fast-track visas for individuals with a job offer for a highly skilled role, which meets specified salary requirements, from a recognised UK scale-up. This route will require employer sponsorship.
- A new Global Business Mobility visa will be introduced by spring 2022 to allow overseas businesses to establish a presence or transfer staff to the UK. The current 'Representative of an overseas business' visa route will be closed to new entrants once the new Global Business Mobility visa route opens.
- A new High Potential Individual visa route is being introduced for recent graduates from a specified list of top global universities who want to work or look for work in the UK following successful completion of their degree. This route will not require employer sponsorship.
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Electronic Travel Authorisations and digital immigration system
Ongoing – phased programme to 2025
- EEA applicants granted status under the EU settlement scheme, Skilled Worker or Intra Company Transfer visa routes are issued digital status, rather than a physical passport endorsement or a residence permit.
- Such EEA applicants access their UK immigration status online and are able to share limited access to this portal with prospective employers or landlords as evidence of their right to remain in the UK.
- This is part of the streamlining and digitisation of the UK's visa system, with a move towards a digital immigration system.
- UK visa applicants currently submit physical passports for endorsement as part of their visa application process, and in future, it is intended that visas will be issued electronically.
- The Government plans to introduce a universal ‘permission to travel’ requirement which will require everyone wishing to travel to the UK (except British and Irish citizens) to seek permission in advance. An Electronic Travel Authorisations (similar to the US ESTA) system will be introduced for visitors.
- EEA applicants granted status under the EU settlement scheme, Skilled Worker or Intra Company Transfer visa routes are issued digital status, rather than a physical passport endorsement or a residence permit.
