'Don't regulate flexible jobs out of existence', Labour warned over zero hours contract changes

Under the plans, employers will be required to offer qualifying workers guaranteed hours reflecting the average numbers of hours they work over a set period. The Government is consulting on the length of the reference period but has already confirmed a preference for it to be 12 weeks.

Qualifying workers will be able to reject an offer of guaranteed hours and remain on a zero hours contract if they wish.

The consultation also takes into account issues such as such as how ‘low-hours’ contracts are defined, how working hours are measured over time, and how shifts can be changed.

But the BRC has warned many retail jobs are shaped by seasonal demand, such as the run-up to Christmas – meaning “proposals that risk turning temporary peaks into permanent contractual commitments could make it harder for employers to offer those extra hours in the first place, reducing opportunities for workers to earn more when they want or need it”.

Helen Dickinson, Chief Executive of the BRC, said: "It’s vital that we don’t regulate flexible jobs out of existence. Flexible and part-time work is how millions of people make employment work for them - balancing shifts alongside study, childcare or caring responsibilities, and retail plays a vital role in providing those opportunities.

“For many workers, that flexibility isn’t a ‘nice to have’ - it’s what makes employment possible and allows them to take on extra hours when it suits them.

"Retailers need to offer those additional hours when demand is there, but they cannot guarantee them all year round. If reforms mean temporary peaks become permanent commitments for responsible businesses, they will offer fewer hours in the first place – reducing both opportunity and the flexibility that workers value and rely on.”

YouGov polling commissioned by the BRC found that 67 per cent of part-time workers took their role because they needed flexibility around commitments such as study, childcare, caring responsibilities or other aspects of everyday life. Among part-time workers with children under 18, this rose to 80 per cent.

When the consultation was launched last week, Business Secretary Peter Kyle said: "It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds.

"Banning exploitative zero hours contracts is totemic because this government believes that people should be treated with dignity and respect at work.

"We’re consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market.”

Niall Mackenzie, Acas Chief Executive, said: "These reforms aim to end irresponsible use of zero hours contracts, with guaranteed hours for workers to help give them financial stability and security. Some workers may value the flexibility of a zero hours contract if they are being used fairly and responsibly and this consultation aims to get this balance right.

“I would encourage employers and workers to respond with evidence on what would work best in practice, alongside any further guidance that would be useful.”

The consultation is running until August 25.