UK Business

Over-regulation could destroy flexible work, retail industry warns

Retail leaders have warned that government reforms designed to scrap zero-hours contracts could eliminate flexible working opportunities for millions, as they called for a rethink of the proposed changes.

Government consultation on guaranteed hours

Ministers last week laid out details of proposals that would require employers to offer staff on zero-hours or short-hours contracts a minimum number of hours each week on a regular pattern. A consultation on how to implement the changes, which are due to come into effect next year, has been opened. The government signalled it would prefer workers to be guaranteed a minimum of between eight and 20 hours per week if their current contracts are at or below that level.

The move has already drawn criticism from unions, employers and trade groups. The British Retail Consortium (BRC) described the reforms as “poorly designed” and said they would put opportunities for many workers at risk.

Why flexibility matters for part-time workers

The BRC commissioned polling which found that two-thirds (67%) of part-time workers took their role because they needed flexibility around commitments such as study, childcare and caring responsibilities. The organisation also highlighted that more than half of all retail jobs — 57.8% — are part-time.

Helen Dickinson, chief executive of the BRC, said: “It’s vital that we don’t regulate flexible jobs out of existence. Flexible and part-time work is how millions of people make employment work for them – balancing shifts alongside study, childcare or caring responsibilities, and retail plays a vital role in providing those opportunities.”

She added: “For many workers, that flexibility isn’t (just) nice to have – it’s what makes employment possible and allows them to take on extra hours when it suits them. Retailers need to offer those additional hours when demand is there, but they cannot guarantee them all-year round.”

Context of youth employment challenge

The guaranteed-hours consultation comes shortly after the Milburn Review highlighted the scale of the challenge facing youth employment, with more than one million young people aged 16 to 24 not in education, employment or training.

A Department for Business and Trade spokesperson responded to the concerns by saying: “Reducing uncertainty over hours and pay will boost living standards for millions of workers, benefit businesses and support economic growth. Those offered guaranteed hours will be able to turn them down and remain on their current arrangement if they wish, and employers and workers can express their views on what the impact of different options could be by responding to the consultation.”

Thaddeus Norwell

Business & Technology Writer
Thaddeus Norwell is a business and technology writer based in London, UK. He reports on business trends, digital innovation, and regulatory developments shaping the UK economy, focusing on practical outcomes rather than speculation. His work explores how technology and policy affect companies, markets, and consumers.
· Market and regulatory analysis, fintech sector reporting, enterprise technology coverage
· UK corporate landscape, tax and fiscal policy, interest rates and mortgages, AI regulation, cybersecurity threats, startup ecosystem

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