Employment Law Review of 2022

As 2022 draws to a close, we take the opportunity to reflect on and summarise some of the key employment law developments from this year. For a deeper dive into these trends, see our employment law review of 2022.

Increases to Statutory Rates and ET Limits

With effect from April 2022, the usual annual increases to statutory sick pay, the national minimum wage and the living wage were implemented. Awards by the Employment Tribunal in unfair dismissal cases have also risen, with the compensatory award ceiling moving from £89,443 to £93,878. The Vento bands for injury to feelings in discrimination claims are now:

• Lower band: £900–£9,900
• Middle band: £9,900–£29,600
• Upper band: £29,600–£49,300
• Exceptional cases: awards over £49,300

Further details are available in our comprehensive review of 2022 employment law.

Four-Day Working Week

In June 2022, more than 3,300 employees across 70 UK companies joined a six-month trial of a four-day working week with no reduction in pay. The post-trial survey showed:

• 88% of companies reported the model worked “well”.
• 95% said productivity stayed the same or improved.

This remains the largest trial of its kind in the UK, and many employers are now exploring similar schemes. Read our analysis of flexible working trends.

Flexible Working

Following the Covid-19 pandemic, hybrid arrangements have become commonplace. Recognising this shift, the Government has announced that the right to request flexible working will become a “day one right”, enabling employees to submit requests from their first day of service rather than after 26 weeks’ continuous employment.

EU Employment Law Revocation

In September 2022, the Retained EU Law (Revocation and Reform) Bill was introduced, proposing that all retained EU law be revoked by the end of 2023 unless specifically preserved. This could affect:

• Paid holiday entitlements
• Working time limits
• Protections for agency and fixed-term workers

We continue to monitor these developments closely.

Calculation of Holiday Pay

In Harper Trust v Brazel, the Supreme Court held that employers must provide a minimum of 5.6 weeks’ holiday per year. For workers with fluctuating hours or pay, holiday pay should reflect their average earnings over the 52-week period preceding the leave, excluding zero-pay weeks.

Long Covid as a Disability

In Burke v Turner Point Scotland, the Employment Tribunal confirmed that long Covid may constitute a disability under the Equality Act 2010 if it has a substantial and long-term adverse effect on day-to-day activities. Employers must consider and implement reasonable adjustments where necessary.

Ban on Exclusivity Clauses for Low-Income Workers

From 5 December 2022, exclusivity clauses in contracts for workers earning below the Lower Earnings Limit are prohibited. Those workers may undertake additional employment without breaching their primary contract. Dismissing a worker for infringing such a clause now amounts to an automatically unfair dismissal.