BRC takes aim at Employment Rights Act and claims it risks backfiring for young workers

Opportunities for young people in retail risk being narrowed if poor implementation of reforms aimed at strengthening worker security end up reducing the availability of flexible, entry level roles, the British Retail Consortium (BRC) has warned.

The Employment Rights Act introduces a right for workers on zero hours and low hours contracts to request guaranteed working hours.

But according to BRC research, 70% of Gen Z workers (18-29) say flexibility at work is important to them, rising to 73% among those working part-time. Far from being a loophole or poor practice, flexible retail roles are actively chosen by people balancing study and other commitments, caring responsibilities or wanting to gain early work experience, the BRC argues.

The warning comes as the Office for Budget Responsibility forecasts unemployment to reach 5.3% this year. With youth unemployment an ‘existential crisis’, according to Alan Milburn, Chair of the Independent Review into Youth and Work, at 16.1% among 16-24 year olds - its highest level in more than a decade - entry routes into work matter more than ever, particularly for young people.

Around 780,000 retail jobs are held by 16-25-year-olds, accounting for 28% of the industry’s workforce and making retail the UK’s largest gateway into work. The Employment Rights Act, which received royal assent last December, aims to improve job security and living standards. At the same time, however, the retail industry’s concern lies in how the legislation will be implemented.

According to a BRC press release: “Taking the wrong approach on provisions such as guaranteed hours risks adding new costs and administrative complexity. Since April last year, the cost of employing a full-time entry-level colleague has risen by 10%, and for someone part-time by over 13%. BRC survey data shows 52% of leading retail Chief Finance Officers plan to reduce hours or overtime in response to these rising employment costs, while 32% expect to freeze recruitment.”

“If implementation further increases costs or rigidity, businesses will inevitably reassess hiring plans, and entry-level and short-hour roles will likely be the first to be scaled back. The unintended consequence would be fewer opportunities for the very young people the reforms are intended to support.”

It added: “The BRC calls on the government to ensure implementation tackles genuine exploitation without undermining the availability of flexible roles. This includes recognising that hours during seasonal peaks cannot be offered throughout the year and taking a realistic approach to expectations for trade union access that do not represent a retailer’s workforce. As secondary legislation goes out to consultation, ministers must work closely with industry to avoid unintended consequences at a fragile moment for youth employment.”

Helen Dickinson, Chief Executive at the British Retail Consortium, says: “Local, flexible jobs are important first steps into work for young people across the country. Whether it is a Saturday job to earn extra cash around studies or doing shifts while balancing caring responsibilities or other life commitments. These roles are relied upon and valued by so many.”

“Retailers want the Employment Rights Act to live up to its ambition and raise standards and improve job security. But at a time when youth unemployment is high and rising, government must ensure reforms double down on tackling bad practices and don’t choke off the routes into a first job for the next generation.”

2026 RTIH Innovation Awards

Employee experiences will be a key focus area at the 2026 RTIH Innovation Awards.

The awards are now open for entries and celebrate global retail technology innovation in a fast moving omnichannel world.

Our winners will be revealed at the 2026 RTIH Innovation Awards Ceremony, taking place at The HAC in Central London on Wednesday, 4th November.

Check out our 2025 winners here.

Our 2025 hall of fame entrants were revealed during a sold out event which took place at The HAC on 16th October and consisted of a drinks reception, three course meal, and awards ceremony presided over by award winning comedian, actress and writer Tiff Stevenson.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “This is the awards’ fifth year as a physical event. We started off with just 30 people at the South Place Hotel not far from here, then moved to London Bridge Hotel, then The Barbican, and last year RIBA’s HQ in the West End.”

“But I’m conscious of the fact that, to quote the legend that is Taylor Swift, You’re only as hot as your last hit, baby. So, this year we’ve moved to our biggest venue yet, and also pulled in our largest number of entries to date and broken attendance records.”

He added: “This year’s submissions have without doubt been our best yet. To quote one of the judges: The examples of innovative developments across both traditional and digital retail spaces were truly remarkable.”

Congratulations to our winners, and a big thank you to our sponsors, judging panel, the legend that is Tiff Stevenson, and all those who attended our 2025 gathering.