Upcoming laws strengthening the rights of UK employees could prompt shops to hike prices and cut jobs, a retail trade body has claimed.
About half of retailers believe the Government’s upcoming employment rights reforms will lead to higher prices for customers, according to a poll by the British Retail Consortium (BRC).
The survey of human resources directors across the retail sector found that a similar amount think the Bill will result in job losses.
The proposed new law includes a right to guaranteed hours, cracking down on zero hour contracts without the offer of work.
It will also bring in new restrictions on “fire-and-rehire” processes when employees are let go and then re-employed on new contracts with worse pay or conditions.
And it strengthens trade unions and gives workers certain “day one” rights, such as sick pay, paternity leave and the right to request flexible working.
The BRC’s survey found companies are most worried about the guaranteed hours, which they say could make it harder to offer people part-time jobs.
Helen Dickinson, chief executive at the BRC, added that the changes come after employment costs rose with the increase in national insurance contributions in April.
She said: “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.
“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 it’s about making sure the implementation of policies help not hinder retailers’ ability to provide the very jobs the economy needs.”
A Government spokesperson said: “Through our transformative Plan for Change, this Government has delivered the biggest upgrade to workers’ rights in a generation, and our measures already have strong support amongst business and the public.
“Our Make Work Pay plan is designed around increasing productivity and creating the right conditions for businesses to support sustained economic growth.
“There is nothing in the Bill to stop employers using part-time contracts and we are committed to ending one-sided flexibility, ensuring there is a baseline of security and predictability so workers can better plan their lives and finances.”
