Labour’s staff’ rights legal guidelines danger ‘pulling up the ladder’ from younger folks struggling to seek out work, warns enterprise chief

Labour’s workers’ rights laws risk ‘pulling up the ladder’ from young people struggling to get a job, a top business chief has warned.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said rather than making their roles more secure the Employment Rights Act could leave them with fewer options.

Writing in the Mail, Dickinson argued that if badly implemented, the act threatened entry-level positions in sectors such as retail that give young people their first rung on the jobs ladder.

‘That journey, from first job to more responsibility and better-paid work, is how living standards improve in a lasting way,’ she said.

‘Yet that ladder is under real strain. For those trying to enter the workforce, fewer entry-level roles mean fewer chances to gain experience.

‘Once those first rungs are removed, progression becomes far harder, and low pay, or no pay, becomes something people are stuck in rather than something they move through.

‘At a time when hundreds of thousands of graduates are struggling to find work, pulling up the ladder would be a mistake.’

The act, whose measures include curbs on ‘zero hour’ contracts and greater protection for newly-hired workers from being sacked, became law in December.

Labour has said it will consult with businesses and trade unions on how it is implemented, having already watered down its proposals before they became legislation.

But it is still expected to add £1bn a year to companies’ costs, to the fury of firms already being battered by soaring taxes, sky-high energy bills and steep increases in the minimum wage.

It also comes during a youth jobs crisis, with nearly a million 16 to 24 year olds classified as not in employment, education or training (NEETs) and recent analysis showing 700,000 graduates are out of work and claiming benefits.

Overall unemployment has also risen – to its highest level since the pandemic.

‘These are early warning signs that opportunities are disappearing, particularly for people trying to enter the workforce,’ said Dickinson.

She said it was right for Labour to seek ‘to raise standards and tackle poor practice at work’ – and that aim was backed by retailers.

‘But employment policy does more than shape conditions for those already in work,’ she added.

‘It also determines who gets their first chance, and how easily people can progress once they are in.

‘The risk lies not in the principle of reform, but in its design and delivery.

‘For many workers, flexibility is not a temporary arrangement or a compromise, it is what makes work possible.

‘Students, parents, carers and older workers increasingly rely on flexible hours to stay economically active. Removing or constraining that flexibility does not make workers more secure; it leaves them with fewer options.’

Job opportunities are disappearing – particularly for the young 

Helen Dickinson is chief executive of the British Retail Consortium

Government’s first job is to raise living standards. That means creating the conditions for higher wages and keeping the cost of everyday goods in check. But none of that matters if people don’t have money coming in – and that starts with one thing: jobs

That truth is becoming increasingly clear for a new generation who were told that education alone would guarantee opportunity. 

Last week, the Centre for Social Justice found that more than 700,000 graduates are now out of work and claiming benefits, with over 100,000 under-30s unable to find a foothold in the labour market.

When people can find work, stay in work and move forward, living standards rise as households gain income, security and confidence. When employment weakens, those foundations start to crumble.

That broader picture is now visible in the job market. Over the past year, payroll employment has fallen by more than 155,000, while unemployment has risen to 5.1 per cent – its highest level since the pandemic. These are early warning signs that opportunities are disappearing, particularly for people trying to enter the workforce.

What is especially concerning is where those job losses are happening. Retail, the UK’s largest private-sector employer and one of the economy’s most important entry points into work, has seen some of the steepest falls in employment, shedding over 70,000 jobs in the past year.

Retail businesses operate on exceptionally tight margins and are still absorbing higher employer National Insurance contributions alongside sustained increases in wage costs, while continuing to invest to keep prices down in the face of inflation. 

Those pressures shape everyday decisions: whether to hire, how many hours to offer, whether to invest with confidence, and how far costs can be absorbed rather than passed on. Over time, they translate into fewer vacancies, particularly for those entry level positions that offer people their first rung on the career ladder.

This matters because of the unique role retail plays in the job market. For one in five people, retail was their first job. For young people looking for those entry level roles, retail serves as a vital bridge – a way to earn and gain experiences as they look to progress into roles aligned with their skills.

Entry-level roles matter not because they are perfect, but because they are enabling. They allow people to gain experience, increase their hours, take on responsibility and progress over time. That journey, from first job to more responsibility and better-paid work, is how living standards improve in a lasting way.

Yet that ladder is under real strain.

For those trying to enter the workforce, fewer entry-level roles mean fewer chances to gain experience. Once those first rungs are removed, progression becomes far harder, and low pay, or no pay, becomes something people are stuck in rather than something they move through.

This is why how the Employment Rights Act is implemented matters so much. Ministers have rightly set out an ambition to raise standards and tackle poor practice at work. Retailers support that aim. But employment policy does more than shape conditions for those already in work. It also determines who gets their first chance, and how easily people can progress once they are in.

The risk lies not in the principle of reform, but in its design and delivery. The UK labour market has changed beyond recognition since the pandemic. Participation has fallen, caring responsibilities have increased, and health-related inactivity remains stubbornly high. Crucially, demand for flexible working has become actively sought after.

For many workers, flexibility is not a temporary arrangement or a compromise, it is what makes work possible. Students, parents, carers and older workers increasingly rely on flexible hours to stay economically active.

Removing or constraining that flexibility does not make workers more secure; it leaves them with fewer options. Protecting workers must therefore include respecting their choices about how they work, not overriding them through rigid definitions of what ‘good work’ should look like.

Living standards do not improve simply because rights exist on paper. They improve when people can build a future through work: learning on the job, increasing their hours, gaining experience and progressing into better-paid roles. That journey can only begin if the first rung of the ladder remains in place.

With thoughtful implementation of the Employment Rights Act, government, business and unions can work to raise standards while supporting jobs and progression, protecting workers while preserving the flexibility the modern jobs market depends on.

At a time when hundreds of thousands of graduates are struggling to find work, pulling up the ladder would be a mistake. The choice is not between fairness and opportunity. It is whether we design policy that helps people climb the rungs, or whether we pull up the ladder entirely just as more people need it.