Four major trade bodies have warned the Government that proposals for guaranteed hours under the Employment Rights Act could threaten quality jobs. The British Retail Consortium, Food and Drink Federation, Recruitment and Employment Confederation, and UK Hospitality jointly wrote to Ministers expressing deep concern that the measure could lead to diminished opportunities and worse conditions for workers.
Industry Concerns
The organisations put forward amendments to the policy which they believe would prevent what they described as "the double whammy of increasing unemployment and fewer young people entering the labour market". In their letter, they stated: "Across our sectors, concern is deep and growing that the current approach risks stripping flexibility from the labour market at precisely the wrong moment."
They added: "With demand already weakened, poorly designed guaranteed hours measures could become a tipping point, pushing employers to reduce hiring, limit hours or withdraw flexible roles altogether, denying work to those who need it most, or moving to less secure, more casual models of engagement."
Government Response
A Government spokesperson responded: "We will only achieve a thriving economy once people have a wage they can count on, which is why we're giving greater certainty to over half the UK's workforce through our Employment Rights Act. We will ensure people can have the security they need by giving eligible workers the right to guaranteed hours, and we will work closely with workers and employers on how the measures are implemented."
The four trade bodies represent sectors that employ millions of workers across the UK, including retail, food and drink manufacturing, recruitment, and hospitality. They argue that the current proposals could inadvertently harm the very workers they aim to protect by reducing employment flexibility and increasing costs for businesses already facing economic uncertainty.
