Major UK retailers including Next and Currys have issued a stark warning that the Labour government's proposed workers' rights legislation will result in fewer jobs across the sector.
Industry Leaders Voice Concerns Over Flexibility
The British Retail Consortium (BRC), which represents over 200 companies, stated that the policies risk undermining job creation. BRC Chief Executive Helen Dickinson argued that the retail sector relies on flexible contracts to manage seasonal demand and variable customer patterns.
"Good employment policy should give employers the confidence to hire, retain and train people," Dickinson said. "Undermining that flexibility risks pricing people out of work, particularly students, parents and older workers for whom retail provides an important route into employment."
A 'Double Whammy' for the High Street
The warning comes as the retail industry contends with what the BRC describes as a double whammy. This includes the impending workers' rights Bill alongside increased costs announced in the Autumn Budget, such as business rates.
Dickinson cautioned that these higher costs would, over time, "translate into fewer jobs, fewer opportunities for working people and weaker high streets." She concluded that the Bill "will mean at the end of the day there are fewer jobs, not better ones."
Specific Criticisms from Retail Bosses
Simon Wolfson, the boss of Next, has previously stated that the new rules "are not fit" for industries that depend heavily on seasonal and temporary staff. His concerns were echoed by Alex Baldock, the Chief Executive of Currys.
"The harder, riskier and more expensive you make it to employ people, the fewer people will be employed," Baldock said succinctly, summarising the core business argument against the proposed changes.
The announcement has sparked debate among the public. One shopper responded online, questioning the government's motive: "The real question is why does the government want to do this?" Another critic suggested the policy would backfire, stating, "They are hurting the very people they are trying to protect." A third comment predicted a negative impact on youth employment, saying the rules would discourage hiring inexperienced applicants.
The retail sector's forceful response sets the stage for further political and economic discussion as the Labour government moves forward with its legislative agenda on employment.
