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The British Retail Consortium (BRC), Food and Drink Federation (FDF), Recruitment and Employment Confederation (REC) and UKHospitality have warned the government that proposed guaranteed hours policies will lead to poorer opportunities and conditions for workers.
In a joint letter to the secretary of state for business and trade, Peter Kyle, the trade bodies outlined how cutting zero-hour contracts – which is part of the Employment Rights Act, represents a “substantial threat to good jobs”.
Business leaders suggest the policy risks undoing flexibility within the UK labour market, claiming the current approach could force employers to reduce hiring or withdraw flexible roles. This would have a knock-on impact on young people entering the workforce.
The letter, dated 24 April, calls for the reference period for assessing regular hours to be set at a minimum of six months. The bodies argue a 12-month period would more accurately reflect genuine work regularity.
The groups also requested that the government set a low hours threshold of eight hours. They claim this would ensure the policy remains targeted at those without predictable hours rather than workers who do not require such protections.
In the letter, trade bodies said: “Across our sectors, concern is deep and growing that the current approach risks stripping flexibility from the labour market at precisely the wrong moment. 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.
“To avoid the double whammy of increasing unemployment and fewer young people entering the labour market we would like to see the government send an urgent and clear message to businesses that they should continue to hire with confidence.”
