In Analysis

Follow this topic

Bookmark

Record learning outcomes

How do new employment rights affect retail environments? Adam Bernstein explains

The employment landscape has changed markedly in recent years. While it’s true that individuals are attracted to an employer because of financial reward, they also gravitate to an employer for many other reasons.

But while benefits, ease of commuting and business culture have a role to play, so employees are increasingly wanting to be able to work flexibly.

And while flexible working has traditionally been associated with office-based roles, it is now being seen in many other sectors and roles - such as retail.

Changes have been made over the years, most recently in 2024. But now the Employment Rights Act 2025 is to grant employees more rights in this area – from a date in 2027 – and it will impact how retail employers manage the workplace.

It needs to be noted that flexible working is based on a statutory right to request, rather than an automatic entitlement to work flexibly.

When it comes to retail, flexible working tends to relate to shift patterns, weekend work, part-time hours, and term-time arrangements, rather than remote or home working, for the obvious reason of staff needing to deal with customers. Even so, retail employees are treated no differently by the law.

Basic rights

The key change brought in during 2024 was the day-one right to request flexible working. As a result, employers – including retail – are now more likely to be asked to consider flexible working by new starters, including those still in their probationary periods. This will clearly have implications for recruitment and planning.

The 2024 change also doubled an employees right to make statutory flexible working; they can now make two requests within any 12-month period.

The process

When an employee wants to make a flexible working request, they must do so in writing while setting out the change sought and the proposed start date; employees no longer need to explain the likely impact of the request on the employer’s business.

Once a request is received, the employer must deal with it reasonably and complete the process, including any appeal against a refusal, within two months unless an extension is agreed. Employers are required to consult with the employee before refusing a request.

As to refusals, employers can do so only on one or more of eight statutory business grounds. These include the burden of additional costs, an inability to reorganise work, difficulties in recruiting staff, and a detrimental impact on quality, performance, or customer demand.

In terms of retail, refusal is likely to be based on customer demand and staffing constraints. By way of example, a request to avoid weekend work may be hard to accommodate. Similarly, reduced evening availability may conflict with a pharmacy’s need to close late on certain evenings.

The point is that while the law sees the commercial realities, it also requires that employers genuinely consider requests rather than reject them as a matter of routine.

The Employment Rights Act 2025

The newly passed Employment Rights Act 2025 introduces a new requirement that refusals must not only rely on a statutory ground but must also be reasonable.

It will no longer be sufficient for an employer simply to cite “detrimental impact on customer demand” without evidence. Rather, they must be able to demonstrate why the impact would occur and why refusing the request is proportionate and reasonable.

Secondary legislation and updated guidance will detail more about the process before it comes into force in 2027. Even so, Employment Tribunals are more likely to examine an employer’s reasoning for rejection. Retailers, like any other business, will need to make greater efforts to document decision-making, consider alternatives, and use evidence to support decisions about staffing needs.

Employee protections

It needs to be understood that employees are protected from detriment or dismissal as a result of making, or intending to make, a flexible working request. In a retail context, this means that employees must not be given reduced shifts, fewer overtime opportunities, or treated unfavourably just because they have made a flexible working request.

Employers who fail to follow the law or act unreasonably are likely to find themselves before an Employment Tribunal. Compensation may be awarded and the matter will become public and expensive – with fees and management time – to resolve.

Practical impact

With day-one rights, multiple requests per year, and the new reasonableness test set in law flexible working is set to become an everyday reality rather than a rarity. Employers should consequently ensure that policies are up to date, managers are trained to handle requests appropriately, and decisions are recorded.

This means that managers need to rota plan, train staff, and look for solutions such as job sharing or adjusted shifts. Of course, not all requests will be accommodated. Even so, fairness and transparency should reduce the chance of a claim and keep employees onside.

There’s no doubt flexible working is here for good. Firms that grasp it are likely to benefit through staff retention, better morale, and improved trust.