Nearly three-quarters of HR directors in the retail sector believe the Employment Rights Bill will have a negative impact on their business, with half suggesting it will reduce headcount.
A British Retail Consortium survey of HR directors at leading UK retailers found that 70% felt the Bill would have a negative or very negative impact, with fewer than one in 10 believing it would have a positive effect.
Half (52%) of retail HR directors suggested the Employment Rights Bill, which is being debated in the House of Lords today, would result in a reduction in staff numbers, while 35% thought it would have no impact, 3% expected an increase, and 10% did not know.
Retail employment
Retail employers offering fewer perks to offset wage rise
Nearly two-thirds (61%) said the Bill would reduce flexibility in job offerings, while 23% stated no effect, 7% predicted an improvement, while 10% were unsure.
The BRC said the greatest concern for HR directors is around proposals to establish rights to guaranteed hours, which risk making it much harder to offer people part-time jobs. Around half of the three million people in retail currently work part-time.
Helen Dickinson, BRC chief executive, 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.”
She said retailers agree with the government on the need to crack down on unscrupulous employers, but that 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”.
Costs were another concern with 52% of survey respondents expecting the Bill to increase prices, with none suggesting it would reduce prices for customers.
James Major, partner and retail sector specialist at Clyde & Co, said: “While the intention behind the Bill is to enhance worker protections, the impact of some of the provisions could be disproportionately felt by retailers in a sector already hit hard by changing consumer habits and, more recently, the increase in employers’ national insurance contributions.
“The detail behind many of the Bill’s provisions is still to be worked out, and it is vital that the government listens and responds to the feedback provided through the various ongoing consultation processes, so that the right balance can be struck between employee rights and the economic viability of sectors such as retail.”
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