A survey of HR Directors (HRDs) of leading retailers reveals the
scale of concerns about the impact of the Employment Rights Bill,
which will be debated in the House of Lords today.
Over 70% of retail HRDs felt the Bill would have a negative or
very negative impact on their business, with fewer than
one-in-ten believing it would have a positive impact.
Over half (52%) of retail HRDs suggested the Employment Rights
Bill would result in a reduction in staff numbers in their
business (35% unchanged; 3% increased; 10% “don't know”).
Meanwhile, 61% said that the Employment Rights Bill would reduce
flexibility in job offerings (23% unchanged, 7% increase, 10%
“don't know”).
The biggest concern for HRDs is around proposals to establish
rights to guaranteed hours, which risk making it much harder to
offer people part-time jobs. 1.5 million of the 3 million people
in retail currently work part-time, which allows them to work as
much or as little as they need, and to balance work with their
other life commitments.
Costs were another concern with 52% of respondents expecting the
Bill to increase prices, with none suggesting it would reduce
prices for customers (26% unchanged, 23% “don't know”). This
comes just weeks after the increase in employer National
Insurance Contributions and National Living Wage that together
will cost retailers £5bn in the coming year. BRC already
estimates that food inflation will hit 5% by the end of 2025.
Helen Dickinson, Chief Executive at the British Retail
Consortium, said:
“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 its 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.”
