What does 2022 have in store?
Along with the usual annual changes to employment conditions such as increases to the minimum wage and changes to maternity pay, 2022 also heralds the implementation of several significant pieces of legislation which will have an impact on both individuals and organisations.
So what changes are we expecting and when:
From 4th January 2022, the National Security and Investment Act 2021 came into force enabling the Secretary of State (SoS) to review any transactions which may have an impact on the UK’s national security. Businesses involved in transactions of this kind are also now obliged to notify the SoS in advance to allow time for the transaction to be reviewed. To read our full article on the Act and the implications it will have for businesses, both timewise and potentially financially, click here.
April generally brings with it a plethora of changes and 2022 is no exception with updates across the board.
National Minimum Wage, sick pay and maternity, paternity, shared parental leave and adoption pay
As announced in the Budget, the National Minimum Wage is set to increase for all ages with those aged 23 and over (also known as the National Living Wage) due to receive £9.50/hour (up from £8.91/hour). Statutory sick pay will increase to £99.35/week and parental, maternity, paternity and adoption leave will all increase to £156.66/week.
As stated in the Finance Act 2021, the rate of Corporation Tax will remain at 19% for 2022/23 but will increase the following year (2023/24) to 25%. This applies to profits over £250,000 and whilst this will not come into play for another year, businesses should already be planning for the implications of this increase on their financial performance.
Divorce Law Reform
The long-awaited reforms to divorce legislation in the UK will arrive via the Divorce, Dissolution and Separation Act 2020 which comes into force on 6 April 2022.
To read our full summary and analysis of the reforms, please click here.
Changes to Building Regulations will come into play to improve energy efficiency, reduce overheating and improve ventilation. There will also be a requirement for new homes to produce 30% less CO2 than current guidelines.
Key Bills expected
We are also expecting to see several key bills make their ways through Parliament this year:
Following the government report published on 14th December, the UK Online Safety Bill, designed to increase the accountability of internet service providers for crimes committed via their platforms, is due to be put to Parliament for approval this year.
The much-anticipated Employment Bill is also expected in 2022 and is likely to include a number of key employment law updates including a potential right to request flexible working from day one.
Finally the Finance Bill will bring a range of measures including legislation for the Asset Holding Company (AHC) regime as well as changes to pension tax legislation and a new residential property developer tax amongst others.
For advice on how any of the above may impact on you or your organisation, please contact your Will (William.email@example.com or 01242 248495).
These notes have been prepared for the purpose of articles only. They should not be regarded as a substitute for taking legal advice.