Business lobbying groups, including the BRC, FDR and UKHospitality, have written to the business and trade secretary, warning of the potential damage of banning zero-hour contracts.
The chief executives of the British Retail Consortium, Food & Drink Federation and UKHospitality have all said the requirements to give workers guaranteed hours in the governmentâs Employment Rights Act pose a âsubstantial threat to good jobsâ in a letter which was also signed by the Recruitment & Employment Confederation.
The letter also says that the proposed changes in the new government bill will lead to poorer opportunities and conditions for workers.
The lobbying groups instead call for the government to reach policy compromises to avoid a âdouble whammy of increasing unemployment and fewer young people entering the labour marketâ.
âAcross our sectors, concern is deep and growing,â the letter adds. âThe current approach risks stripping flexibility from the labour market at precisely the wrong momentâ.
âWith 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.
âWe would like to see the government send an urgent and clear message to businesses that they should continue to hire with confidence.â
The letter, dated April 24, also calls for the government to engage in discussions with business groups about any proposal changes, to set the low-hours threshold at eight hours, and the reference period for assessing regular hours to be set at an âabsolute minimumâ of six months, arguing a year would more accurately reflect genuine regularity.
The Employment Rights Act came into law in December and is being phased in over the rest of the year.
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