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Garages given breathing space as Employment Rights Act 2025 looms

Independent garages have been given a window to prepare for sweeping changes to employment law as the Employment Rights Act 2025 comes into effect.

While the legislation is already live, the most significant provisions affecting employers will be phased in from April 2026.

The Act introduces a series of reforms that will affect day-to-day operations in workshops, including sick pay, harassment prevention and unfair dismissal rights.

Crucially, employees will now have day-one access to Statutory Sick Pay (SSP), with the lower-earnings limit and waiting period removed.

Employers will also face a strengthened duty to prevent harassment, extending responsibility to cover conduct by customers as well as staff.

Meanwhile, the long-discussed reduction of the unfair dismissal qualifying period has been delayed and revised: it will now drop to six months, coming into force from 1 January 2027.

For smaller workshops, the changes represent a significant shift in HR obligations. But the Independent Garage Association (IGA) has moved quickly to reassure members.

“These are significant changes, but independent garages have time to prepare,” said Jonathan Douglass, Director of the IGA. “Our members need clarity and effective tools. We will continue to urge government to provide fair notice and ensure that consultation processes reflect the needs of our sector.”

The IGA already offers a library of essential HR resources, including sickness policies, recruitment templates and employment forms, which will be updated in line with the phased rollout of the Act.

Jonathan added: “Our priority is to ensure that independent garages are fully supported through this transition, enabling them to adapt confidently while continuing to deliver safe, reliable and affordable services to motorists.”

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