Retailers warn guaranteed hours reform could cut jobs

UK retailers are warning that planned guaranteed-hours changes under the Employment Rights Act could affect a large share of jobs in the sector. The British Retail Consortium (BRC) said reforms due to take effect from April could have negative consequences for more than half of UK retail roles, with young and part-time workers highlighted as particularly exposed.

 

The BRC, which represents major UK retailers, focused its concerns on the design of guaranteed-hours protections. It argued the rules should apply only to contracts of eight hours per week or fewer, and that any assessment should use a reference period of at least 26 weeks. The group said a longer reference window is needed to reflect seasonal patterns in retail staffing, where hours can rise and fall across the year.

 

The legislation also includes other worker protections, including measures linked to sick pay, sexual harassment, parental leave, and trade union recognition. The BRC noted that additional rights are expected next year, including guaranteed hours, flexible working, and payments tied to shift cancellations. In the BRC’s view, the combined package risks treating flexibility as a problem rather than a feature that many workers rely on.

 

To support its position, the BRC pointed to the structure of retail employment. Its analysis said 55% of retail roles are part-time, compared with a UK-wide average of 33%. It also cited survey findings that 52% of UK adults place a high priority on being able to adjust working hours, which the group said reflects the needs of people balancing studies, childcare, or health conditions.

 

Trade unions have taken the opposite view, arguing the reforms are aimed at insecurity rather than genuine choice. The shop workers’ union Usdaw and the Trades Union Congress (TUC) backed the changes, saying they would help workers in insecure arrangements. They said women and disabled people would be among those who benefit, with Usdaw arguing the new rights would improve security and predictability and help ensure a guaranteed wage.

 

For markets and policymakers, the debate centers on how the rules are scoped and timed. Retail is a major employer and a key channel for consumer spending, so changes to scheduling practices and guaranteed-hours obligations can influence staffing models and cost planning. The BRC’s proposal for an eight-hours-or-fewer threshold and a 26-week reference period underscores the uncertainty around how the final framework will handle seasonal demand and variable hours.

 

What remains unclear is how broadly the guaranteed-hours provisions will be applied in practice and how employers will adjust contracts and rotas once the April implementation begins, with further rights due next year. Unions say the reforms will help workers plan finances and manage family responsibilities, while retailers warn that overly wide coverage could reduce opportunities for those who prefer flexible hours.