2021: HR Year in Review

2021: HR Year in Review

2021 has been a year of fast-moving changes. Here we look back on some of the challenges employers have had to deal with over the last year.

Covid

• The closure of the furlough scheme on 30 September 2021,
• The ending of the shielding programme on 15 September 2021,
• The roll out of mandatory Covid vaccines for CQC-regulated care homes in England.

Mandatory vaccinations are being extended to wider health and social care settings from April 2022. This includes public (NHS) and private organisations and will affect all frontline workers who have direct, face-to-face contact with service users, in both clinical and ancillary roles.

• “Plan B” saw a return to compulsory face coverings in most indoor places, guidance to work from home and the introduction of Covid-passes in nightclubs and large events.

It has also been confirmed that booster doses of Covid jabs will be included within the scope of full vaccination as soon as reasonably possible. Organisations may therefore need to review the existing Covid-status of their workforce to include this.

Statutory Entitlements

• Carer’s leave to be introduced as soon as parliamentary time allows. This allows employees with caring responsibilities to take up to one week (5 working days) of unpaid leave per year from day 1 of employment.
• Flexible working. Consultation into changing this has now closed. Proposed changes include making it the default position, a day-one right to submit a request and allowing more than one request per year. It also reviewed the existing eight fair reasons for refusal and assessed the timeframe employers have to respond. An outcome is expected early 2022.
• The Real Living Wage rates were increased in November 2021 to £11.05 (London) and £9.90 (rest of the UK).
• New National Minimum Wage rates have been confirmed for April 2022: 23+ year olds = £9.50; 21-22 year olds = £9.18; 18-20 year olds = £6.83; 16-17 year olds = £4.81; Apprentices = £4.81.
• New statutory rates have also been proposed (and are likely to come into force) as follows: SMP, SShPP, SAP, SPP, SPBP £156.66, SSP £99.35, LEL £123.

Equality and Diversity

• Gender pay gap reporting has returned with a 6-month extension to publish 2020/2021 reports, until 5 October 2021. Normal April deadlines apply from now on.
• The CIPD called on the government to introduce mandatory ethnicity pay gap reporting by 2023.
• A cross-government Menopause Taskforce was established, looking at the role education and training, workplace policies and peer groups for menopausal women can play in supporting women. Many organisations signed the Menopause Workplace Pledge, showing their commitment to recognise that the menopause is an issue and women need support.

Brexit

• The UK officially left the European Union on 31st December 2020, which saw significant changes to right to work checks and immigration rules. Applications for settled status closed at the end of June 2021, subject to limited extensions.
• A new points-based immigration system saw an increase in employers applying for a sponsorship licence, to employ those to whom settled status doesn’t apply.

IR35

From 6 April 2021, tougher requirements were put on employers to decide the status of contractors, freelancers and consultants, to ensure that employers were not evading their employment related tax liabilities. If contractors are “deemed workers” i.e they fall inside of IR35, they can no longer be paid “off payroll”. Instead, they will be paid via payroll after tax and NI is deducted. Previously, it was the contractor’s responsibility to assess their tax status, but this now falls on the organisation. It is worth noting however that the status of workers for tax purposes is not the same as in employment law.