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UK retailers weigh in on new employment rights roadmap

Retail leaders warn that reforms must be carefully crafted to avoid disrupting the flexible working patterns many employees value and businesses depend on.

Mohamed Dabo July 03 2025

The UK government has unveiled a roadmap for the Employment Rights Bill, aiming to enhance protections for around half of the country’s workforce and bring greater clarity for employers.

The retail sector, a major employer in the UK, has issued measured reactions to the proposals, emphasising the need for balance between workers’ rights and business certainty.

Overview of the employment rights bill roadmap

The government’s Employment Rights Bill roadmap sets out plans to update and extend workers’ rights in response to the evolving labour market.

It focuses on providing clearer definitions around employment status, simplifying employment law, and improving protections for workers in flexible or gig economy roles.

The objective is to offer more certainty to both employees and employers, reducing disputes and ensuring fair treatment across sectors.

The proposals include new rights for a significant portion of workers who currently fall outside traditional employment protections, as well as measures aimed at streamlining the regulatory environment for businesses.

The government’s announcement stresses a dual goal of improving worker security while maintaining economic competitiveness.

Retail sector’s perspective on proposed employment reforms

The British Retail Consortium (BRC), representing UK retail businesses, welcomed the government’s intention to provide certainty for employers but urged caution regarding the potential operational impact. Helen Dickinson, BRC Chief Executive, acknowledged the positive intent behind the roadmap, stating that “clarity and fairness for workers is vital.”

She recognised the government’s attempt to address the changing nature of work and called for practical implementation that avoids unintended consequences for retailers.

Dickinson highlighted the scale and diversity of the retail workforce, noting the sector’s reliance on a range of employment types, including part-time and flexible contracts. She stressed the importance of ensuring that new legislation “supports the flexible working patterns that many retail workers rely on.”

The BRC emphasised that reforms should avoid introducing additional complexity or costs that could hinder retailers’ ability to manage their workforce effectively.

Balancing worker protections with business certainty

In her detailed comments, Helen Dickinson addressed several key areas of the roadmap. She welcomed efforts to simplify employment status definitions, saying this “could reduce confusion and legal disputes.”

However, she cautioned that any changes must be carefully designed to avoid increasing costs or risks for employers, which could impact retail sector stability.

Dickinson also pointed to the need for clear guidance and transition arrangements to help businesses adapt to new regulations without disruption.

The BRC supports the government’s stated goal of balancing enhanced rights for workers with a regulatory framework that does not stifle business growth or flexibility.

Finally, Dickinson called for ongoing dialogue between government and industry to ensure that reforms meet the practical needs of both workers and employers in the retail sector.

She said, “Engagement will be essential to create policies that protect workers while sustaining the sector’s vital contribution to the UK economy.”

The roadmap for the Employment Rights Bill marks a significant step in updating UK labour law, with the retail industry watching closely to see how changes will affect its workforce and operations.

As the government progresses with consultations and legislative development, retailers will continue to voice the need for workable solutions that balance rights and responsibilities.

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