Employment law updates July 2022

Jul 7, 2022 | Blog, Legal Updates

2 new employment law updates from July 2022 – 1st one is a change to sick notes.
Previously known as a sick note it is now called a fit note and needs to be provided if an employee has been off sick for more than 7 days including weekends/non working days. The fit note will say if your employee is not fit for work or may be fit for work – in which case some allowances may be required.
Perhaps even more interesting it is no longer only a GP that can sign fit/sick notes. It can now be signed by all these healthcare professionals
GP or hospital doctor
registered nurse
occupational therapist
pharmacist
physiotherapist

Makes more sense as depending on your illness/injury you may be attending a physio or OT rather than a GP.

Second update is a NI threshold change

NI threshold has increased effective today from £9880 to £12570. this could mean an extra £330 take home pay for some people.

Back in April the rate of NI increased from 12% to 13.25% and Earnings above £4,189 a month (£50,270 per year) are now subject to national insurance deductions of 3.25%. This 1.25% rise has been earmarked as a Health and social care levy to support the NHS. From April 2023, NI will revert to its old level but a new Health and Social Care Levy, at that same 1.25% rate, will be paid separate to national insurance contributions, becoming a tax in its own right.

The changes this week means that 30 million people will benefit and 2.2 million will no longer pay NI contributions at all.

The changes you actually see in pay packets will depend on the salary and whilst everyone will see a reduction from April 2022 some will still be paying more than in 2021/2022.

Please contact us if you have any questions.

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