Big retailers say UK jobs at risk from guaranteed hours reforms

More than half of roles could be hit and young shop workers in particular could lose out, trade body warns More than half of retail jobs could be affected by reform to guaranteed working hours, making it harder for shops to employ people – particularly young workers – in part-time roles, the industry’s lobby group has warned.

From April, the Employment Rights Act will introduce new protections for workers on sick pay, sexual harassment, parental leave and trade union recognition. Further rights to guaranteed hours for those currently on zero or “low hours” contracts, flexible working, payment for short-notice cancellation of shifts and barring fire-and-rehire practices in most circumstances are due next year.

However, the government has yet to decide the maximum number of hours in a low-hours contract and the period of weeks over which regular working patterns can be assessed in order to decide guaranteed hours.

The British Retail Consortium (BRC), which represents most big UK retailers, says guaranteed hours protections should only apply to contracts of eight hours a week or fewer, and the reference period to be at least 26 weeks – or ideally a full year. It says this would better reflect seasonal working patterns and ensure reforms address genuine problems without undermining jobs.

Helen Dickinson, the chief executive of the BRC, said: “Flexible retail jobs are a vital part of how millions of people are able to stay in work. 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. “Retailers support the aim to improve job security, but the detail of Employment Rights Act implementation will be critical. 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.” The BRC said 55% of retail roles are part-time, far above the UK average of 33%, according to its analysis.

It said workers value flexibility, with a survey of 2,000 adults by Opinium for the BRC finding 52% of UK adults think the ability to flex working hours around their lives is important. It said the retail sector offers roles that allow those balancing study, caring responsibilities or health needs to stay in work.

However, the shop workers’ union Usdaw said its evidence showed that the new rights would deliver the greatest benefit to those in the most insecure forms of employment, particularly women and disabled workers.

Joanne Thomas, the general secretary of Usdaw, said: “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.

“Tackling precarious employment is good for the economy, growth and individual workers who should have the decency of a guaranteed wage that they can off.” Paul Nowak, the general secretary of unions group the TUC, agreed: “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 said the right to regular hours and a ban on “exploitative” zero-hours contracts will make a real difference to working people’s living standards.

“It’s essential this government commitment is delivered in full.”