Retail industry leaders have urged the Government not to eliminate flexible employment through its proposed overhaul of zero-hours contracts.
The British Retail Consortium issued its warning on Sunday, labelling the reforms as “poorly designed” and cautioning that they could jeopardise opportunities for numerous workers.
Recently, ministers unveiled details last week of plans that would guarantee hours for employees currently on zero-hours or short-hours arrangements.
The proposals have drawn criticism from multiple quarters, with unions, employers and trade bodies all raising concerns about the potential impact of the changes, which are scheduled to take effect next year.
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A consultation has been launched on new rules that would compel employers to offer staff on zero-hours or minimal-hours contracts a set number of weekly hours based on regular working patterns.
The Government has indicated its preference for workers to receive guaranteed hours ranging from eight to 20 per week, applicable to those whose current contracts fall at or below that threshold.
These changes form part of the Guaranteed Hours consultation, which follows the recent Milburn Review that highlighted significant challenges in youth employment, with over one million people aged 16 to 24 currently outside education, employment or training.
Research commissioned by the BRC revealed that two-thirds of part-time employees chose their roles specifically because they required flexibility to accommodate other commitments, including studying, looking after children or fulfilling caring duties.
Retailer have issued a warning to the Government
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High streets have been hit by a wave of closures since the pandemic | PA
The trade body also pointed to the significant proportion of the retail workforce employed on a part-time basis, with the figure standing at 57.8 per cent of all jobs in the sector.
Helen Dickinson, the chief executive of the BRC, said: “It’s vital that we don’t regulate flexible jobs out of existence.
“Flexible and part-time work is how millions of people make employment work for them balancing shifts alongside study, childcare or caring responsibilities, and retail plays a vital role in providing those opportunities.”
She added that for many employees, such flexibility “isn’t just nice to have – it’s what makes employment possible” while allowing them to take on additional hours when circumstances permit.
The high street has been hit with store closures in recent months. | PA
A Department for Business and Trade spokesperson defended the proposals, stating that addressing uncertainty around hours and pay would improve living standards for millions whilst supporting economic growth.
They said: “Reducing uncertainty over hours and pay will boost living standards for millions of workers, benefit businesses and support economic growth.
“Those offered guaranteed hours will be able to turn them down and remain on their current arrangement if they wish, and employers and workers can express their views on what the impact of different options could be by responding to the consultation.”
Retailers have hit out at other Labour policies over the years, including the hikes to the National Living Wage and employer National Insurance contributions.