UK Retail Jobs at Risk from Guaranteed Hours Reforms, Warns Industry Body
The British Retail Consortium (BRC), representing major UK retailers, has issued a stark warning that more than half of retail jobs could be impacted by upcoming reforms to guaranteed working hours. These changes, part of the Employment Rights Act, aim to enhance protections for workers but may inadvertently make it harder for shops to employ people, particularly young workers in part-time roles.
New Employment Rights and Their Implications
Starting in April, the Employment Rights Act will introduce new safeguards for workers, including improved sick pay, measures against sexual harassment, enhanced parental leave, and better trade union recognition. Further rights, scheduled for next year, include guaranteed hours for those on zero or low-hours contracts, flexible working arrangements, payment for short-notice shift cancellations, and restrictions on fire-and-rehire practices in most cases.
However, the government has yet to finalise key details, such as the maximum number of hours in a low-hours contract and the period over which regular working patterns are assessed to determine guaranteed hours. The BRC advocates that these protections should only apply to contracts of eight hours a week or fewer, with a reference period of at least 26 weeks, or ideally a full year. This approach, they argue, would better accommodate seasonal working patterns and ensure reforms address genuine issues without jeopardising jobs.
Flexibility Versus Security in Retail Employment
Helen Dickinson, chief executive of the BRC, emphasised the critical role of flexible retail jobs in supporting millions of workers. "Flexible retail jobs are a vital part of how millions of people are able to stay in work," she said. "As the UK’s largest private sector employer, retail provides opportunities for students earning alongside their studies, parents balancing childcare, and those managing health conditions. These part-time roles are not only valued, but relied upon across the country."
Dickinson added that while retailers support improving job security, the implementation details are crucial. "If reforms treat flexibility as a problem rather than something workers actively choose, the risk is fewer opportunities and reduced access to work. Government must strike the right balance by targeting genuine bad practice while protecting the flexible roles that underpin employment in retail."
According to BRC analysis, 55% of retail roles are part-time, significantly higher than the UK average of 33%. A survey of 2,000 adults by Opinium for the BRC found that 52% of UK adults consider the ability to flex working hours around their lives important, highlighting the value placed on flexibility in the sector.
Union Perspectives on Worker Protections
In contrast, the shop workers’ union Usdaw argues that the new rights will primarily benefit those in the most insecure forms of employment, particularly women and disabled workers. Joanne Thomas, general secretary of Usdaw, stated, "Retail employment is notoriously dogged by precarious employment practices and retail workers absolutely rely on basic employment rights, particularly with non-unionised employers. So, the act is very important to staff and crucially helps to protect decent employers from being undercut by the worst who exploit workers."
Thomas emphasised that tackling precarious employment benefits the economy, growth, and individual workers. "Tackling precarious employment is good for the economy, growth and individual workers who should have the decency of a guaranteed wage that they can live off."
Paul Nowak, general secretary of the TUC, echoed this sentiment, noting that working people need security and predictability to plan their lives. "Working people need security and predictability to plan their lives, manage their finances and care for their children. It’s no wonder this change is so popular. It will make a massive difference to many families’ quality of life. We can’t afford the status quo."
He highlighted that the right to regular hours and a ban on exploitative zero-hours contracts will significantly improve living standards for workers, urging the government to deliver on its commitments in full.
The debate underscores the tension between flexibility and security in the retail industry, with both sides advocating for reforms that protect workers while maintaining employment opportunities. As the government finalises the details, the outcome will have far-reaching implications for the UK's largest private sector employer and its workforce.
