The Fed Writes to Business Secretary About Employment Rights Act

The Fed’s National President, Hetal Patel, has written to the Secretary of State for Business, Peter Kyle MP, calling for the Government to carefully implement the Employment Rights Act and communicate clearly with small businesses like independent retailers so they can prepare.

Mr. Patel said: “Fed members are responsible employers and value a positive working relationship with their staff members so fully understand the measures in the Act and their positive intentions. However, we continue to have concerns that the Act will have the unintended consequence of making recruitment of staff less flexible, ultimately adding to unemployment, which is not in the interests of anyone.”

The letter comes at a time of rising unemployment, now at 5.3% and youth unemployment an ‘existential crisis’, according to former Labour MP and Government Minister, Alan Milburn, Chair of the Independent Review into Youth and Work – now at 16.1% among 16-24 year olds

The Fed’s letter also came as the BRC shared data indicating particular concern that flexibility at work is especially important for younger workers especially, which is likely to be made more challenging by measures in the Act which include measures around Reasonable notice of a shift change when introduced next year, as well as a series of obligations for employers to comply with including extra work place rights including Statutory Sick Pay from Day one of employment (which begins in April 2026).

Mr. Patel concluded his letter with a promise to engage with Government in its upcoming consultations on further measures in the Act, as well as promising to help Fed members prepare and share key Government measures. Mr. Patel also requested a meeting so the Fed could share the concerns of independent retailers directly.