More than half of retail roles could be impacted by the Employment Rights Act guaranteed hours reform, with industry leaders warning the changes may reduce flexible job opportunities and make it harder for businesses to hire part-time staff, particularly younger workers.
The planned reforms, which aim to strengthen worker protections across the UK, are set to introduce new rules on guaranteed hours, shift cancellations and employment practices. While ministers argue the changes will improve job security, retail leaders say the impact on flexible work could be significant.
Retail sector warns over job flexibility
The Employment Rights Act guaranteed hours reform is expected to reshape working arrangements for millions of employees currently on zero-hours or low-hours contracts.
The British Retail Consortium has warned that up to 55% of retail jobs – most of which are part-time – could be affected by the changes. The sector is the UK’s largest private employer and relies heavily on flexible staffing models to manage fluctuating demand.
Retailers argue that many workers actively choose flexible hours to balance study, childcare or health needs, and fear that stricter rules could reduce the availability of such roles.
Key changes under the new law
The Employment Rights Act guaranteed hours reform forms part of a broader package of workplace changes being introduced from April and into next year.
The legislation will expand protections around sick pay, parental leave, workplace harassment and trade union recognition. In addition, upcoming provisions will include:
Guaranteed working hours for employees with regular patterns
Compensation for shifts cancelled at short notice
Expanded rights to flexible working
Restrictions on “fire-and-rehire” practices
However, the government has yet to confirm critical details, including the threshold for low-hours contracts and the timeframe used to assess working patterns.
Retail leaders are urging ministers to limit the reforms to contracts of eight hours per week or fewer and to use a longer reference period of at least 26 weeks – or ideally a full year – to reflect seasonal fluctuations in retail demand.
Concerns over youth and part-time employment
Industry representatives say the Employment Rights Act guaranteed hours reform could disproportionately affect young people and part-time workers.
Flexible retail jobs are often a key entry point into the workforce, particularly for students and those seeking supplementary income. Employers warn that increased regulation could lead to fewer opportunities if businesses reduce hiring or restructure contracts to manage costs and compliance risks.
A survey cited by the retail sector found that more than half of UK adults value the ability to adjust their working hours, highlighting the importance of flexibility in modern employment.
Trade unions back stronger protections
Despite industry concerns, trade unions have strongly supported the Employment Rights Act guaranteed hours reform, arguing it will address long-standing issues of insecure work.
The shop workers’ union Usdaw says the reforms will benefit employees in precarious roles, particularly women and disabled workers who are more likely to rely on low-hours contracts.
Union leaders argue that predictable hours and stable income are essential for workers to manage finances, family responsibilities and overall wellbeing.
The Trades Union Congress has also backed the measures, stating that stronger employment protections will improve living standards and support economic stability.
Balancing flexibility and security
The debate over the Employment Rights Act guaranteed hours reform highlights a broader challenge facing policymakers: how to balance flexibility for employers and workers with the need for greater job security.
Retailers maintain that flexibility is a key feature of the sector and warn that overly rigid rules could undermine employment opportunities. Meanwhile, unions argue that flexibility should not come at the expense of basic rights and financial stability.
Rise of zero-hours contracts in the UK
Zero-hours and low-hours contracts have become a prominent feature of the UK labour market over the past decade, particularly in sectors such as retail, hospitality and social care.
These arrangements allow employers to adjust staffing levels in response to demand, but have been criticised for leaving workers without guaranteed income or predictable schedules.
Successive governments have faced pressure to reform employment laws to address concerns about job insecurity, with the Employment Rights Act guaranteed hours reform representing one of the most significant changes in recent years.
What happens next
As consultations continue, the final shape of the Employment Rights Act guaranteed hours reform will depend on decisions around key thresholds and implementation details.
Businesses, unions and policymakers are expected to continue negotiations in the coming months, with the outcome likely to have a lasting impact on the UK labour market.
For now, uncertainty remains over how the reforms will affect hiring practices, job availability and working conditions across one of the country’s largest employment sectors.