‘One new government bill has sparked more debate and concern among retail leaders than others’

As the dust settles on the recent riots, it’s easy to forget the King’s Speech was only a month ago. It included 40 bills, from creating an independent football regulator to bringing rail contracts under government control.

Of these, more than a dozen have relevance to retailers. Some, more tangentially, such as the Great British Energy Bill aiming to establish a new publicly-owned energy production company, is important in helping retailers’ net zero targets and reducing risks of energy price shocks.

Others will have more immediate effects and have been driven, in part, by the lobbying efforts of the BRC and retailers. The Crime and Policing Bill, for instance, will introduce the standalone offence in England and Wales of assaulting a retail worker and stronger measures to combat the epidemic of shoplifting.

“One bill has sparked more debate and concern among retail leaders than others – the Employment Rights Bill”

The Skills England Bill sets in motion reform of the broken Apprenticeship Levy and its replacement with a more flexible Growth and Skills Levy. We’ll continue to engage with the Labour government to ensure it meets the training needs of a modern retail workforce.

However, one bill has sparked more debate and concern among retail leaders than others – the Employment Rights Bill. Will it improve employment conditions for workers and empower government to crack down on rogue employers? Or is it a major shift in power from businesses to employees, adding business cost and reducing flexibility?

From the King’s Speech, it aims to “introduce a new deal for working people to ban exploitative practices and enhance employment rights”. Further details suggest myriad changes to employment law, including banning exploitative zero-hour contracts, ending fire-and-rehire practices, introducing day-one rights on parental leave and sick pay, and more.

Many proposals are not only uncontroversial but should be welcomed. Strengthening protection for new parents, for example, could further help the industry close the existing gender gap and encourage a healthier work-life balance.

“Many of the provisions – such as stopping exploitative contracts and offering flexibility in employment – are things that the vast majority of retailers are already doing”

But some discussions I’ve had make me think some aspects are misunderstood. Some say the introduction of day-one rights for workers would mean that employers cannot use probationary periods or fire ineffective colleagues. However, we should be reassured by Labour’s explicit comments that employers can continue to use probationary periods to assess new hires and dismiss inadequate employees.

In fact, many of the provisions – such as stopping exploitative contracts and offering flexibility in employment – are things that the vast majority of retailers are already doing. As progressive employers, they operate with transparency and trust built from working with unions, as public companies, and/or simply as good businesses recognising that people are critical to success. Introducing these new standards for everyone ensures that good employers are competing on a level playing field.

The independence of the Low Pay Commission remains. While it must now also consider the cost of living, its new remit does not set a target for a “genuine living wage”. The introduction of a single adult national living wage for those aged over 18 will be phased in over time.

That is not to say that there are not legitimate questions to be answered. 

“Rather than a ‘them and us’ fight to be had, we should lean in and support progressive employment rights for the three million people who make our industry great”

Similarly, while strengthening day-one rights is, in principle, to be welcomed, the government needs to understand and assess the potential costs this might impose on an industry that relies heavily on seasonal workers during key trading periods.

Ultimately, the proof will be in the pudding. There are many more consultative and legislative hoops to come and the BRC will continue engaging with Labour to keep an eye on shaping the details as they are announced.

But rather than a ‘them and us’ fight to be had, we should lean in and support progressive employment rights for the three million people who make our industry great. We should work with the government and the unions to create the right balance between the needs of retailers to respond to market conditions and the interests of working people. Creating the win-win is the goal.