The British Retail Consortium (BRC) has warned that the proposed Employment Rights Bill is threatening to stall recruitment and reduce job flexibility across the retail sector, according to a new survey of HR Directors from leading UK retailers.
As the House of Lords prepares to debate the legislation today, findings show over 70% of retail HR Directors believe the Bill will have a negative or very negative impact on their business. Less than one-in-ten see any positive effect.
The survey revealed that more than half (52%) of retail HRDs expect to reduce staff numbers as a direct result of the Bill. Furthermore, 61% said the new legislation would diminish flexibility in job offerings, an essential feature for the sector, where 1.5 million of the 3 million retail workers are employed part-time.
The biggest concern centres on the proposed guarantee of minimum working hours, which retailers argue would make it significantly harder to offer flexible, part-time roles. This could impact those who rely on adaptable hours to balance work with family or education.
The financial strain from the Bill is another flashpoint. A majority (52%) of respondents anticipate an increase in consumer prices due to added employment costs, with none expecting a price reduction. These concerns are compounded by recent increases in National Insurance Contributions and the National Living Wage, forecast to cost retailers an additional £5 billion this year. The BRC already expects food inflation to reach 5% by the end of 2025.
Helen Dickinson, Chief Executive of the British Retail Consortium, stated:
'Almost 250,000 jobs have been lost in retail over the last five years, and many major retailers have already announced further job cuts on the back of increased costs of employment, which kicked in in April. 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. This matters: local, flexible retail jobs are an important stepping stone for those entering or returning to the workforce.'
'Retailers agree with Government on the need to crack down on unscrupulous employers, but in its current form the Employment Rights Bill could backfire, putting the brakes on hiring, or worse still, putting retail job numbers further into reverse. The Government wants growth and wants to reform welfare and increase the numbers in work. We are aligned on the objectives. Now it's about making sure the implementation of policies help not hinder retailers' ability to provide the very jobs the economy needs. 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. Many of the amendments being debated in the Lords today would provide some of this valuable clarity, so I hope to see them supported by Peers and accepted in turn by the Government.'
The BRC is calling for urgent revisions to the Bill to preserve flexibility in retail jobs and support long-term employment growth.
More information:
British Retail Consortium
[email protected]
www.brc.org.uk