UK retail leaders have welcomed the Government’s latest update on the Employment Rights Bill, particularly changes to unfair dismissal provisions, while highlighting the need for continued engagement on other employment issues.
The update is part of ongoing efforts to modernise employment law and balance protections for employees with operational flexibility for businesses.
Retailers support practical changes to unfair dismissal rules
The Government’s update on unfair dismissal rules aims to streamline procedures and clarify protections for workers, particularly in high-employment sectors such as retail.
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), described the revisions as a “practical step” that could protect both jobs and employees.
The discussions concluded that reducing the qualifying period for unfair dismissal from 24 months to six months, while maintaining existing day-one protection against discrimination and automatically unfair grounds for dismissal, is a workable package.
This change is expected to benefit millions of working people who will gain new rights, while providing businesses and employers with much-needed clarity.
To further strengthen these protections, the Government has committed to ensure that the unfair dismissal qualifying period can only be varied by primary legislation and that the compensation cap will be lifted.
Retailers noted that these adjustments reflect meaningful discussions between businesses, trade unions, and government representatives, offering a model for collaborative policymaking.
Concerns remain over guaranteed hours and flexible employment
While the revision of unfair dismissal provisions has been widely welcomed, retailers continue to express concern over other areas of the Employment Rights Bill.
Proposed rules on guaranteed hours could limit the ability of retailers to provide part-time, flexible, or local employment opportunities, which are critical to the sector’s workforce strategy.
The BRC has called for further dialogue to ensure these provisions do not inadvertently restrict operational flexibility or harm employment opportunities.
Implementation timeline and industry engagement
Retail leaders have stressed that the delay in the Bill’s Royal Assent must not lead to a compressed implementation schedule. The Government has invited businesses to participate in consultations, and industry groups such as the BRC are urging sufficient time for high-quality engagement.
Ensuring the Bill’s provisions are practical for large-scale employers is seen as crucial to balancing regulatory compliance with workforce sustainability.
The updated Employment Rights Bill represents a significant moment for UK retail, with the potential to shape labour practices for years to come. As discussions continue, industry stakeholders are advocating for policies that support both employees’ rights and business agility.
