𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour’s plan to end “zero hours” contracts will make it even harder to give young people a job, retailers have warned. The Department for Business and Trade has launched a consultation on new laws requiring employers to offer fixed hours to any member of staff after 12 weeks.

The aim is to end “exploitative zero-hours contracts”, in which staff may have no idea from week to week how many hours they will work or how much they will be paid. But the British Retail Consortium, which represents 200 high street chains as well as independent shops, said this will prevent shops from employing extra staff during busy periods, such as the run-up to Christmas. It is calling for the time period before staff gain new rights to be extended to 26 weeks.

Chief executive Helen Dickinson said: “Retail is a lifeline into work for hundreds of thousands of young people each year. But if Government piles on cost and risk, many of those entry-level jobs won’t be there in future.”

Official figures last week showed the number of people aged 16 to 24 not in employment, education or training has reached 1,012,000, and a Government-commissioned report by former Health Secretary Alan Milburn warned the figure could rise to 1.25 million.

The British Chambers of Commerce has also criticised the planned new laws. Patrick Milnes, head of people and work policy, said: “The proposed right to guaranteed hours for people on zero-hours or low-hours contracts is a major concern for the businesses we represent, especially in sectors such as retail and hospitality.”

But adding to Labour’s woes, trade union USDAW said the proposals do not go far enough because the right to guaranteed hours will not apply to some part-time staff who are expected to work additional hours on a flexible basis.

USDAW general secretary Joanne Thomas said: “Those additional hours can be removed at the discretion of the employer, leaving workers without stability or security. These contracts are as exploitative as zero-hours contracts and leave workers exposed to income insecurity week to week.”

The government consultation ends on August 25. Ministers are then expected to introduce legislation.

Business Secretary Peter Kyle said: “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.”