Minister promises pragmatic approach on Employment Rights Bill

Justin Madders, the minister for employment rights, competition and markets, has written to the Association of Convenience Stores (ACS) recognising the challenges faced by the convenience sector and pledging to collaborate with its members when implementing upcoming legislation introduced by the Employment Rights Bill.

The government in October set out its plans for a sweeping package of new workers' rights including plans to end fire-and-rehire practices and strengthening sick pay in the biggest change to employment law in a generation.

Key reforms include making flexible working the default, introducing a new right to bereavement leave, enabling day-one access to paternity and unpaid parental leave, and strengthening protections for pregnant women and new mothers. The bill also addresses zero-hours contracts, granting workers on such arrangements the right to request more predictable hours and receive reasonable shift notices.

In his letter, the minister recognised convenience colleagues as essential workers who provide local, secure, and flexible work, and praised the good record of ACS members providing secure permanent contracts and giving good notice for shifts. As highlighted by the ACS Local Shop Report 2024, the convenience sector provides local, flexible and secure employment for around 445,000 people and this year generated £9bn in tax income for the Treasury.

“We recognise the challenges that convenience stores are facing – from rising operational costs to pressures of inflation – and so we are determined to ensure that our legislation is introduced pragmatically, working with businesses like yours, so that the implementation of these changes can be managed constructively,” Madders wrote.

“Businesses will not be expected to make changes overnight. There will be proper, thorough consultation on key details and, with the majority of reforms not expected to take effect earlier than 2026, we will ensure sufficient time to adapt to changes.”

He invited the ACS and its members to work in partnership with the government to help ensure the reforms “get the right balance and put the principles we all share into practice.”

James Lowman, ACS chief executive, welcomed the government’s collaborative stance.

“We welcome the minister's commitment to striking a balance with the Employment Rights Bill so that our members can continue to invest in creating jobs and offering services to the communities they serve. Our sector epitomises the principles of good work, creating local, secure, flexible jobs in communities through the UK,” Lowman said.

“Separate to these reforms, the cost of employing people has increased significantly through National Living Wage and National Insurance Contribution rises, so the implementation of new employment law needs to be light-touch and pragmatic.”

Earlier this month, ACS gave evidence to the Rates Bill Committee on the benefit of separate, lower multiplier for retailers, which would help retailers invest in their business.