Tell Us How the Employment Rights Bill Will Affect Your Garage’s Business
The Labour government plans to implement major changes to employment law, as outlined in the King’s Speech and detailed in the recent Employment Rights Bill (ERB).
Jon Douglass, Director of IGA, stated:
“These changes could present significant new challenges for employers, including independent garages. During this consultation period, the IGA is committed to ensuring the voice of the independent garage sector is heard.”
We need your opinion: The IGA encourages members to tell us how these changes may impact your business. Please share your thoughts via email: enquiries@RMIF.co.uk or call 01788 225 908; confidentiality is assured.
Below are some of the key points from the recently released Employment Rights Bill:
Unfair Dismissal: Day One Right
Currently, employees must work for two years to claim unfair dismissal. The new rule eliminates this waiting period, allowing claims from day one. This change makes it more challenging for employers to terminate new hires who may not be the “right fit.”
Discussions about a probation period of 6 to 9 months are ongoing, but specifics are still pending.
Statutory Sick Pay
Statutory Sick Pay (SSP) will be available from the first day of sickness, with no waiting period, and there will no longer be a minimum earnings requirement for getting SSP. The amount of SSP will be a percentage of pay, but the Secretary of State will set the exact amount later.
Paternity, Parental, and Bereavement Leave
At the moment, employees are entitled to Parental Bereavement Leave, but there is no right to bereavement leave for other types of losses. The ERB changes this, extending Bereavement Leave to cover other relationships, but the exact relationships covered haven’t been fully decided yet.
The ERB also makes Paternity and Parental Leave a right from the first day of employment.
Protection from Sexual Harassment
From 26 October 2024, employers must take reasonable steps to prevent sexual harassment by third parties, like customers or suppliers. Employees cannot sue their employer for the harassment itself under this legislation, if third-party harassment occurs. However, if the employer fails to take steps to prevent it, this can form the basis of a separate claim at an Employment Tribunal and any compensation award made will be subject to an up lift of up to 25% if the employer has failed to take reasonable steps to prevent sexual harassment.
Fire and Rehire Restrictions
New rules make it illegal for employers to fire and rehire employees on new terms unless they can demonstrate that it is essential to address serious financial issues and that no alternative solutions exist. This will make it harder for employers to fire and rehire staff under new conditions.
Zero-Hour Contracts
Employees on zero-hour contracts can request guaranteed hours based on their past work. This also applies to minimum-hour contracts to prevent rule circumvention. Employers must provide reasonable notice for shifts or cancellations, with further details on what “reasonable” means to come. Breaches may result in financial compensation for employees.
Flexible Working
The ERB proposes that employees may soon have the right to flexible working, though employers can still deny requests with clear reasons. The main change is that employers will need more transparent processes for explaining these rejections.
Enhanced Protection for Pregnancy and New Mothers
The ERB wants to give more protection to pregnant employees and new mothers returning to work, but we don’t yet know the exact details or how long these protections will last.
Full Breakdown Available
We’ve outlined key changes from the Employment Rights Bill, but for a comprehensive breakdown from RMI Legal Services, members can access the full document in the IGA members area by clicking here.
We need your opinion. The IGA encourages members to share how these changes might affect their business. You can provide your feedback by emailing Enquiries@RMIF.co.uk or calling 01788 225 908. All responses will remain confidential.
