Independent retailers are facing a “generational” transformation of employment law that could fundamentally change how small businesses operate, according to the final episode of Bira’s first High Street Matters podcast series. Legal experts warn that upcoming changes affecting nine million employees will create significant new burdens for businesses already struggling with rising costs.
In ‘Rights and Risks – The Employment Challenge Facing Britain’s High Streets,’ journalist Steve Dyson interviews leading figures about the sweeping reforms set to reshape the employment landscape over the next two years.
Gerry O’Hare, Legal Director at WorkNest and long-standing partner for Bira in providing support to members in employment law, HR, and health and safety, outlines the scale of the challenge facing employers.
“The UK employment law landscape is going to undergo a tectonic shift over the next two years,” says O’Hare. “Employers are basically staring down the barrel of generational changes, so it’s going to be more important than ever for them to try and stay ahead of the curve.”
The changes include day-one rights not to be unfairly dismissed, reforms to zero-hours contracts, statutory sick pay from day one, and stronger duties to prevent sexual harassment in the workplace.
John Jones, managing partner of Philip Morris & Son, a homewares and country clothing store based in Hereford, expresses concerns shared by many independent retailers. “It ultimately comes down to the viability of businesses,” says Jones. “We’re already dealing with this huge new tax burden and then we’ve got essentially a huge raft of changes to deal with. As small businesses we haven’t got HR departments, we haven’t got the resources to be putting hundreds of hours into making sure we’re ticking every box.”
The podcast reveals particular concern about day-one dismissal rights, as O’Hare explains. “Currently, only employees who have been employed for two years have the right to make a claim for unfair dismissal, but the Employment Rights Bill will abolish the two-year qualifying period, making unfair dismissal a day one right.”
However, O’Hare also offers some reassurance. “During what’s known as the initial period of employment – basically a probationary period – employers will still be able to dismiss employees more easily through a light touch process, with the government seemingly leaning towards a period of nine months.”
Bira CEO Andrew Goodacre emphasises the Association’s ongoing efforts to influence the legislation.
“Most of the changes don’t happen until 2026, and that gives us the opportunity as an association representing independent retailers to keep this conversation going with the Department for Business and keep talking to policymakers about the unintended consequences we see.
“I would urge all independent retailers to reach out to their local MP and express concerns about changes that they see coming. We already know the government may change its view on winter fuel payments because of what it’s hearing from local MPs talking to constituents. We need to get this message across that too much, too soon, is asking too much of small independent retailers.”
The High Street Matters podcast series is available on all major streaming platforms, with new episodes planned to cover various topics relevant to today’s retail landscape. For further information on Bira, please click here.