Flexible Work Under Scrutiny
Retail Industry Warns UK Government Over New Flexible Work Regulations
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The UK government launched a formal 12-week consultation on June 2, 2026, that could force employers to offer guaranteed hours to workers on zero-hours contracts. The retail industry fired back fast. The British Retail Consortium (BRC) warned ministers: "Don't regulate flexible jobs out of existence" PA News Agency.
The stakes are enormous. A record 1.23 million UK workers are currently on zero-hours contracts, according to ONS data. The new rules, expected to take effect in early 2027, would require employers to offer a guaranteed contract to any worker who regularly clocks more hours than their contract states GOV.UK.
How the Guaranteed Hours Rule Would Actually Work
The Employment Rights Act 2025 received Royal Assent in December 2025. It shifts the law from a "right to request" stable hours to a "duty to offer" them. Employers would have to look back over a reference period — likely 12 weeks — and calculate average hours worked. If a worker regularly exceeds their contracted hours, the employer must offer a guaranteed contract DLA Piper.
The government is considering an 8-to-20 hour threshold. Workers guaranteed fewer hours than they actually work would be eligible for the new offer. Employers would then need to run quarterly re-assessments to check who has triggered the right. Minister Kate Dearden says the change will save workers in deprived areas up to £600 a year in lost income from cancelled shifts GOV.UK.
Retail Giants Say Seasonal Work Makes 12 Weeks Too Short
The BRC, alongside the Food and Drink Federation and UKHospitality, sent a joint letter to Business Secretary Peter Kyle. They called the proposals "poorly designed" Cumnock Chronicle. Their core complaint: a 12-week reference period cannot capture the seasonal swings of retail. A shop worker who picks up extra shifts every December would look like a full-time employee on paper.
The BRC's CEO Helen Dickinson said the current design is "a challenge to workers and businesses alike." The consortium is pushing for a 52-week reference period instead. It would smooth out seasonal peaks and give a truer picture of normal working patterns. The BRC also points out that 57.8% of all UK retail jobs are part-time, making the sector unusually exposed to the new rules East Lothian Courier.
Workers Say Flexibility Is Often Forced, Not Chosen
The retail industry frames zero-hours work as a choice. The BRC's own survey found that 67% of part-time workers chose their roles for the flexibility — to handle childcare, study, or caring duties Barrhead News. But unions push back hard on that framing. The TUC's Paul Nowak calls the current system a "national scandal" that lets employers hold all the power.
Research from the Work Foundation at Lancaster University adds weight to the unions' case. It found that 77% of zero-hours workers are not in full-time education. That undercuts the common claim that these contracts mainly serve students who want total freedom. Usdaw, the retail union representing over 100,000 workers on such contracts, argues workers deserve "a contract that reflects the hours they regularly work" The Northern Echo.
Government Bets Worker Security Will Boost the Economy
The Department for Business and Trade is clear on its goal. It says reducing uncertainty over hours and pay will boost living standards for millions and stimulate economic growth. Workers with a predictable income will be able to apply for mortgages and loans they were previously denied News and Star.
But trade groups warn the policy could backfire. They say retailers may respond by cutting hiring altogether or shifting more work to gig economy models to stay below the trigger threshold. The consultation closes on August 25, 2026. Whatever rules emerge will define Labour's relationship with both its union backers and the business community for years to come GOV.UK.
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