Labour's workers' rights changes could lead to job losses and price hikes, Government warned

The survey of human resources directors across the retail sector found that a similar amount think the Bill will result in job losses.

The proposed new law includes a right to guaranteed hours, cracking down on zero hour contracts without the offer of work.

It will also bring in new restrictions on “fire-and-rehire” processes when employees are let go and then re-employed on new contracts with worse pay or conditions.

And it strengthens trade unions and gives workers certain “day one” rights, such as sick pay, paternity leave and the right to request flexible working.

The BRC’s survey found companies are most worried about the guaranteed hours, which they say could make it harder to offer people part-time jobs.

Helen Dickinson, chief executive at the BRC, added that the changes come after employment costs rose with the increase in national insurance contributions in April.

She said: “Those in charge of retail hiring are clear – unless amended, the Bill will make it even harder to keep and create jobs and reduce the flexibility that defines many existing retail roles.

“Retailers agree with Government on the need to crack down on unscrupulous employers, but in its current form the Employment Rights Bill could backfire, putting the brakes on hiring, or worse still, putting retail job numbers further into reverse.

“The Government wants growth and wants to reform welfare and increase the numbers in work.

“We are aligned on the objectives.

“Now it’s about making sure the implementation of policies help not hinder retailers’ ability to provide the very jobs the economy needs.”

The Bill is due to be debated in the House of Lords today as it continues its progress through Parliament.

Ms Dickinson said there is an opportunity to improve how the bill operates.

She said: “Changes to guaranteed hours proposals and ensuring government’s willingness to engage translates into meaningful changes to the current direction of travel will provide clarity so retailers can stop considering or making decisions based on worst case scenarios.

"Many of the amendments being debated in the Lords today would provide some of this valuable clarity, so I hope to see them supported by Peers and accepted in turn by the Government.”

Last month, Treasury minister Lord Livermore said that Labour’s plan will put more money in people pockets and give them the security to spend it.

He said: “We are confident that it will result in ordinary working people having more money in their pockets, but also having the security to spend that money, because they don’t have to worry from week to week whether or not they will be in work or how many hours they will get.”

The Office for Budget Responsibility has said it had not yet been able to take account of the Employment Rights Bill in its forecasting as there was not enough detail available on the policy. But it has warned regulations which “affect the flexibility of businesses and labour markets” are likely to have “material and probably net negative, economic impacts on employment, prices, and productivity”.