Employment Rights Bill ‘will make it harder to keep and create jobs’

The legislation is nearing the final stages of its passage through parliament and will introduce wide-ranging changes to zero-hour contracts, sick pay, leave, flexible working and dismissal.

However, it is also set to increase costs on employers and retailers are concerned, given that the sector is already facing significant increased pressures from higher taxes such as the April rise in employers’ national insurance contributions.

The BRC survey found that 70% of HR directors at large retailers believe that the new legislation will have a negative impact on their businesses, while more than half of the respondents believe that the bill would lead to a reduction in staff numbers.

The survey revealed that 61% of respondents believed it would “reduce flexibility” in job offerings.

BRC chief executive Helen Dickinson said that the changes proposed in the bill risk “putting retail job numbers further into reverse”.

“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,” she said.

“This matters. Local, flexible retail jobs are an important stepping stone for those entering or returning to the workforce.

“Retailers agree with the 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.”