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
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 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.