Business Group Warns Against “One-Size-Fits-All” Employment Rules
Downtown in Business (DIB) has urged the government to adopt a balanced and pragmatic approach to proposed reforms of zero-hours contracts, warning that well-intentioned legislation could unintentionally damage employment opportunities and place additional pressure on key sectors of the economy.
Responding to the Department for Business and Trade consultation on employment reforms, DIB has backed measures to tackle exploitative working practices but cautioned ministers against introducing restrictions that fail to recognise the benefits flexible contracts can provide for both employers and employees.
The business organisation, which represents hundreds of companies across sectors including hospitality, leisure, retail, property, and professional services, argues that the focus should be on eliminating abuse rather than removing flexibility.
In its submission, DIB highlights the important role that flexible working arrangements play in supporting city centre economies, particularly in sectors such as hospitality, tourism, culture, events, and retail, where demand can fluctuate significantly throughout the year.
DIB’s response also notes that many workers actively choose flexible contracts because they suit their lifestyles, family commitments, studies, or retirement plans.
Frank McKenna, Chief Executive of Downtown in Business, said:
“Nobody should be exploited at work, and where employers are using zero-hours contracts unfairly or irresponsibly, government intervention is absolutely justified.
“However, the debate has become far too polarised. The reality is that many people value the flexibility these arrangements offer, whilst many businesses rely on them to respond to changing customer demand.
“The challenge for ministers is not to ban flexibility, but to prevent abuse.”
McKenna warned that sectors already facing significant cost pressures could be particularly vulnerable to unintended consequences arising from poorly designed legislation.
He added:
“The hospitality industry, visitor economy, retail sector and events industry are among the UK’s biggest employers. They operate in a world where demand changes daily, weekly and seasonally.
“At a time when businesses are already dealing with rising employment costs, National Insurance increases and continuing economic uncertainty, introducing rigid employment rules could reduce opportunities for workers and increase costs for employers.
“Government should focus on creating a framework that protects employees whilst still allowing businesses and workers to retain the flexibility many of them want.”
The DIB submission calls for reforms that distinguish between genuine exploitation and legitimate flexible working arrangements, arguing that employers who require staff to work regular and predictable hours should provide greater certainty, whilst businesses with genuine operational needs should continue to have access to flexible workforce models.
McKenna concluded:
“This does not need to be a choice between workers’ rights and economic growth. Good legislation can deliver both.
“We want to see stronger protections for employees, but we also want to preserve the flexibility that helps businesses grow, creates jobs, and supports sectors that are vital to the success of our towns and cities.
“The government should resist a one-size-fits-all approach and instead develop reforms that reflect the realities of the modern workplace.”
