The Government’s new Employment Rights Bill, debated in the House of Lords today, is facing strong criticism from some of the UK’s largest retailers.
A survey by the British Retail Consortium (BRC) has revealed major concerns among retail HR Directors, who fear the proposals could lead to reduced job opportunities and less flexibility for workers.
Go deeper with GlobalData
The Bill aims to improve workers’ rights by introducing measures such as guaranteed working hours. Supporters say it is a much-needed step to give employees more security, but businesses argue it could unintentionally harm both workers and the wider economy.
Concerns over job losses and rising costs
According to the BRC survey, more than 70% of retail HR Directors believe the Employment Rights Bill will have a negative or very negative impact on their businesses. Only a small fraction – fewer than one in ten – thought it would have a positive effect.
Over half of the HRDs surveyed (52%) said they expect staff numbers to fall if the Bill is introduced in its current form. Many retailers fear that guaranteed hours requirements will make it harder to offer part-time roles, which are crucial for the sector.
Currently, around 1.5 million of the 3 million people working in retail are part-time, often balancing work with studies, childcare, or other responsibilities.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThere are also fears that the Bill will push up costs. More than half of the respondents (52%) expect retail prices to rise, adding to pressures on customers at a time when food inflation is already forecast to reach 5% by the end of 2025.
Retailers have recently faced other cost increases, including higher National Insurance contributions and a rise in the National Living Wage, amounting to an extra £5 billion in employment costs this year alone.
Workers’ rights campaigners say reform is overdue
While businesses are concerned about unintended consequences, many workers’ rights groups have welcomed the Bill.
They argue that more reliable hours will help address the growing problem of insecure employment, particularly among lower-paid workers. Campaigners point to the rise of zero-hours contracts and unpredictable shift patterns, which can leave employees struggling to plan their finances or personal lives.
Advocates of the Bill say that guaranteeing minimum hours could improve living standards and help workers secure mortgages and other forms of credit. They argue that fairer treatment of workers is vital for building a sustainable economy and reducing reliance on welfare.
Calls for adjustments to avoid harming retail jobs
Helen Dickinson, Chief Executive of the BRC, stressed that while retailers support action against poor employment practices, the current version of the Bill could “backfire” and slow down job creation.
She warned that without changes, retail job numbers – which have already fallen by nearly 250,000 over the past five years – could fall even further.
Dickinson said: “Retailers agree with the Government on the goal of raising employment standards, but the current proposals risk making it harder to offer the flexible jobs that are crucial for so many people.
Adjustments to the Bill, especially around guaranteed hours, would give businesses the clarity they need to continue hiring.”
With several amendments being debated by peers today, retailers are urging the Government to strike a balance that improves job security without putting further strain on a sector already under pressure.
