Four major UK trade bodies have warned the government that proposed guaranteed hours measures risk undermining jobs, hiring and labour market flexibility, in a joint letter sent to the secretary of state for business and trade.
The letter, dated 24 April 2026, is signed by the British Retail Consortium, Food and Drink Federation, Recruitment and Employment Confederation, and UKHospitality, organisations representing businesses that employ millions of workers across sectors heavily exposed to shifting consumer demand.
While acknowledging the government’s mandate to restore economic growth, the groups argue that the current approach to guaranteed hours – a key part of the Employment Rights Act 2025 – could have unintended and damaging consequences.
The British Retail Consortium has argued for several months that guaranteed hours should only apply under eight hours.
The four trade bodies described the policy as a “substantial threat to good jobs,” warning it could increase employment costs, legal risks and administrative burdens on businesses already facing rising costs and global uncertainty. According to the letter, these pressures could force employers to reduce hiring, cut available hours, or move away from flexible roles altogether.
“Across our sectors, concern is deep and growing that the current approach risks stripping flexibility from the labour market at precisely the wrong moment,” the letter stated.
It added that poorly designed measures could become a “tipping...
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