Indie retailers warn against new employee rights as Starmer vows to ‘rip up the rulebook’ on bureaucracy

By Jo Gilbert

Published: 15 October, 2024

The government’s proposed ‘biggest upgrade to workers’ rights in a generation’ could stifle job creation in independent shops and place further financial pressures on already struggling retailers, the Federation of Independent Retailers (the Fed) has warned.

Ministers recently unveiled plans to adopt a ‘pro-business, pro-worker’ approach under the new Employment Rights Bill, which will see employees gain better access to sick pay, protection from day one from unfair dismissal and strengthened rights for pregnant women and new mothers.

The new legislation was introduced last week, just days ahead of yesterday’s (14 October) International Investment Summit, where Prime Minister Keir Starmer vowed to “rip up” Britain’s bureaucracy and tell regulators to prioritise growth.

Read more: Armit Wines invests in staff to support growth plans

According to the Financial Times, Starmer insisted the UK was open for business after the political “circus” that followed Brexit, stating: “You have to grow your business, I have to grow my country.”

Businesses however have since sounded a knell of caution in the rush to boost pay and productivity.

“As responsible retailers, we want to ensure that employees are treated fairly, but many of these proposed changes will have cost implications for small retailers who are already struggling financially because of rising bills and sluggish sales,” Mo Razzaq, national president of the Fed, said.

“There is a risk of Fed members becoming less inclined to take on new staff because of the additional red tape involved if those people who are recruited are not seen to be a good fit.”

Yesterday’s summit was the first of its kind since Labour took over in Westminster 102 days ago and is believed to have secured £63bn in private-sector pledges for the British economy.

While hospitality was not specifically mentioned at the summit, Kate Nicholls, chief executive of UKHospitality, has since taken the opportunity to stress how the sector plays an integral role in investment decisions which “cannot be overlooked. Companies setting up a new office or relocating staff to a new city or country want to make sure their teams see a place as attractive to live. Hospitality is the foundation of all of that,” she concluded.

Printer friendly version