"Tectonic shift" in employment law threatens independent retailer viability, warns Bira podcast

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 interviewed 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 & Safety — outlined the scale of the challenge facing employers.

Mr O'Hare said: "The UK employment law landscape is going to undergo a tectonic shift over the next two years. 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, expressed concerns shared by many independent retailers.

Mr Jones said: "It ultimately comes down to the viability of businesses. 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 revealed particular concern about day one dismissal rights, with Mr O'Hare explaining: "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, he offered some reassurance, he said: "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."

On statutory sick pay reforms, which will extend payments from day one rather than day four and remove earnings thresholds, Mr Jones highlighted the practical implications.

Mr Jones said: "It does seem almost ridiculous that they're getting that money from the start at 80% for those lower earners. These are often people in their first job, still at school perhaps, in an age group where they're likely to have a hangover from having too much to drink."

Bira CEO Andrew Goodacre emphasised the association's ongoing efforts to influence the legislation, he said: "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 policy makers about the unintended consequences we see."

Mr Goodacre urged retailers to engage with the political process, adding: "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 (search 'High Street Matters'), with new episodes planned covering various topics relevant to today's retail landscape.