Bill on Employment Rights Could Result in Reduction of Retail Workforce
Crunch Time for Labour's Employment Rights Bill: Retailers Warn of Job Cuts, Price Hikes, and Decreased Flexibility
TheEmployment Rights Bill, part of the government's legislative agenda, is causing waves in the business world, with 31 major retailers warning of potential harm to economic growth. The legislation aims to revolutionize employment rights, but retailers paint a far less optimistic picture.
The bill includes changes to zero-hours contracts, sick pay, leave, flexible working, and dismissal, all of which will add more costs on employers. In the retail sector, already grappling with high taxes, the extra burden seems to be a breaking point.
The British Retail Consortium (BRC) has conducted a survey of HR directors in big retailers, revealing their concerns about Labour's workers' rights reforms. A startling seven in ten HR directors believe the reforms will have a negative impact on their businesses. These fears highlight the widespread pessimism about the bill's current form.
The survey also revealed that over half of respondents anticipate a reduction in staff numbers, while 61% expect a decrease in job flexibility. Combined, retailers employ some 500,000 people, according to the BRC.
One particular concern revolves around the addition of rights to guaranteed hours. The BRC contends that this change will limit part-time job offerings, which make up half of the 3m workforce in retail. As the jobs market is already fragile following the pandemic, this hit could be disastrous, with 250,000 job cuts so far.
Helen Dickinson, the BRC's chief executive, warned that the proposed changes risk reversing retail job numbers. Dickinson claims, "Those in charge of retail hiring are clear: unless amended, the bill will make it even harder to keep and create jobs and reduce the flexibility that defines many existing retail roles."
To alleviate these concerns, Dickinson advocates for specific changes to the guaranteed hours proposals, claiming such modifications would provide much needed relief to retailers. "Changes to guaranteed hours proposals and ensuring government's willingness to engage translates into meaningful changes to the current direction of travel will provide clarity so retailers can stop considering or making decisions based on worst case scenarios," she explained.
Furthermore, consumers could end up paying more for items due to these increased costs. The BRC previously predicted food inflation could hit 5% this year due to other increases like National Insurance Contributions (NICs) and the national living wage.
With the bill set to be debated in the House of Lords this week, retailers and business groups are urging Peers to amend key elements. They argue that unchecked, the Employment Rights Bill could hinder growth prospects and create more unemployment. The future of retail employment hangs in the balance, and only time will tell if the government will listen to these critical concerns.
[1] Source: British Retail Consortium[2] Source: Financial Times[3] Source: Retail Gazette
- The Employment Rights Bill, aiming to revolutionize employment rights, is causing concern among retailers over its potential negative impact on their businesses, with 7 out of 10 HR directors expressing such fears.
- The bill's proposals regarding zero-hours contracts, sick pay, leave, flexible working, and dismissal pose additional costs for employers, already burdened by high taxes, potentially leading to job cuts and decreased flexibility in the retail sector.
- Over half of the respondents in a British Retail Consortium survey anticipate a reduction in staff numbers, while 61% expect a decrease in job flexibility, affecting more than half a million employees in the retail sector.
- The addition of rights to guaranteed hours could limit part-time job offerings, which constitute half of the 3 million workforce in retail, potentially causing a disastrous hit to the jobs market, which is already fragile due to the pandemic.
- Helen Dickinson, the BRC's chief executive, is urging the government to make changes to the guaranteed hours proposals to provide relief to retailers and prevent further job losses, as the current direction could potentially make it harder to keep and create jobs.
- Retailers, along with business groups, are urging Peers in the House of Lords to amend key elements of the Employment Rights Bill before its debate this Tuesday, fearing that unchecked, it could hinder growth prospects, increase prices for consumers, and lead to more unemployment.
