MPs urged to back key ERB amendments

The British Chambers of Commerce (BCC) is calling on MPs to support key amendments to the Employment Rights Bill, when it returns to the Commons.

Several changes to the legislation have the backing of the BCC.

Research by the BCC shows 79 per cent of firms don’t feel the impact of new government policies is being properly assessed and 77 per cent think policy change is not moving at the right pace.

The Lords’ amendments, which could make a real difference for business, are:

• Reducing the qualifying period for unfair dismissal from two years to six months, rather than to day one, with a statutory probation period brought in after that. This will help ensure the employment relationship is right for everyone.

• Additional consultation being carried out before introducing some elements of the bill. These include zero-hours contracts, flexible working, Statutory Sick Pay and unfair dismissal.

• Retaining the turnout threshold of 50 per cent of union members voting in a ballot for it to be valid.

• Employees getting a right to request a guaranteed hours contract after 26 weeks. This is instead of employers having to continuously offer them to people, even if they prefer the flexibility of their current arrangements.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce said: “Some of the amendments made to the Employment Rights Bill in the House of Lords give businesses real hope.

“Peers have rightly recognised there needs to be a more balanced approach to this legislation. It needs to be proportionate, affordable and right for both firms and their employees.

“These changes to some of the key measures in the Bill will help ensure employers have the agility and flexibility to respond to change, to innovate and remain competitive.

“When parliamentarians return in September, it’s vital that these amendments are backed and delivered. To grow the economy and create more opportunities for people across the country, the government must focus on removing costs, complexity and barriers for business.”

Have you ever thought about making it on your own or expanding your current business offerings?

In recent years, reports state there have been approximately 800,000 new businesses set up each year and record number of businesses currently being run in the UK, with many people taking the plunge.

Whilst you are dreaming of success, it is still vital that you consider the below (what some would consider) mundane points to ensure the best possible start for your business.

Structure

Your first and crucial decision is how you wish to set up your company. Each legal structure comes with its own pros and cons, from filing obligations (i.e. Companies House requirements), tax consequences to the limitation of your own personal liabilities.

With various options available to you including being a sole trader, running a partnership, a limited liability partnership or a limited company, it is important that you make an informed decision as to what is best for you and your future company.

Financing

Whether a family member or friend is providing capital or whether you are obtaining a loan from a recognised lender to assist with the initial costs of your business, care should be taken before you sign on the dotted line. Particular attention should be taken to ensure that the terms on which the funds are being loaned to you are fair with no disproportionate penalties for non-payment or limitation to your rights as a borrower.

Protecting your interests

You’ve decided to set up a limited company and have made your long running business partner or even current best friend a shareholder, but what happens if the relationship sours? You need to consider putting a shareholders agreement in place to dictate what happens in such an event. A shareholders agreement can not only govern the distribution of profits, it can also provide a mechanism for dealing with disputes. The same, of course, applies to partnerships and partnership agreements.

Without this, you may find yourself in a pretty uncomfortable position, with potentially high financial ramifications and the risk of not holding as much control over your business as intended.

Going forward

Your legal requirements don’t stop with the creation of your business – there are GDPR requirements, terms and conditions for your services or products, the list goes on.

It may be tempting to obtain contracts written by certain online AI tools, however there is a long-term benefit from obtaining professional advice to protect you from risk. For example, you do not want to enter into a dispute with a client to find out your terms are written entirely in their favour.

Starting your business correctly is vital, from incorporation through to your day to day contracts. Careful consideration should be taken as to what you and your business require not only to run smoothly but to succeed.

At Neves, we understand both new and small businesses, and will work alongside you whether you are a shareholder, director, sole trader or partner to advise you at every step of your new venture.