What does Osborne's Budget today mean for retailers and Sunday Working?

Yesterday heard reports that Sunday trading rules, which prevent larger retailers from trading for more than six hours on a Sunday, would potentially be relaxed. This was despite previous indications in a letter by the Conservative political correspondence manager to the campaign group Keep Sunday Special (see here) that the status quo would be retained, the 2012 Olympics being an exception. Indeed, at the time of the Olympics, Mark Prisk, Business Minister confirmed that the suspension of Sunday trading restrictions was temporary and would not be “a test case for a permanent relaxation of the rules in the future”.

However, today George Osborne confirmed the u-turn in his summer budget.

So what is this U-turn?

Decisions on opening times on Sundays will be devolved to local authorities and mayors.  This recognises that whilst some areas may welcome this boost to their local economy, a relaxation of the Sunday trading rules will not be right for every area. Indeed, Anna Soubry, the Minister of State at the Department of Business responded on BBC Radio 4’s Today programme to concerns from Usdaw, the shopworkers’ union that “these are the sorts of views we want to hear and the considerations we need to be aware of… if we go ahead with it… it’s about giving local authorities the ability to determine what they want to do in their area, and it may be that in some areas they say ‘no, this is not for us'”.  

This move is being made on the back of a growing appetite for Sunday shopping and competition from the internet.

The plans are expected to be taken forward in the Government’s new Enterprise Bill this Autumn. 

And what does this mean for retail employers?

Whilst, economically, it is understandable why the Government wants to extend Sunday trading hours, devolving Sunday trading decisions will leave consumers confused as to when shops are open and employers lacking clarity as to how to treat their employees nationally. And given this is a devolved power, how imminent any changes are really does remain to be seen.  

• An employee’s rights to work are set out in their contract of employment which provides for their days and hours of work. The Working Time Regulations 1998 also provide that an employee may only work a maximum of 48 hours per week (referenced over a specific period) unless the employee has signed a written opt out. Employers will need to keep a careful watch on working hours to ensure these rules are not breached.
• Employers will also need to take care to clarify whether different pay rates apply for Sunday working (and recognising any impact this may have on holiday pay).
• Employees in the UK are protected from discrimination on the grounds of their religion or beliefs and also on the basis of their sex. Employers must ensure consistency of treatment to minimise the risk of discrimination claims from those who wish to keep Sunday as a special date but also parents keen to spend time with their families.  There may be other employees by contrast who wish to take any opportunity there may be to work extra or different hours on a Sunday in order to free up time to meet childcare commitments during the week.
•  The Agency Worker Regulations 2010 may also be relevant to businesses faced with less keen staff and who may need to consider bringing in agency staff.
• Shop workers who are not employed to only work on Sundays are already entitled under the Employment Rights Act 1996 to opt out of any requirement by their employer to work on a Sunday on three months’ notice (although this is reduced to one month where an employer has failed to inform the shop worker of the right to opt out). There are likely to be many who object to working on Easter Sunday and Christmas Day, particularly on the grounds of religious beliefs and this will require some careful navigation by employers.

This new proposal is likely to see resistance from a number of areas, including those close to an employer’s home such as trade unions.  However, as reported here, research by New West End company suggests extending Sunday trading by two hours in London alone would create 3,000 jobs and generate over £200m a year in income and would bring us in line with international competitors such as Paris, which has recently relaxed restrictions on Sunday trading and New York where no such rules are in place. Further, the fact that it will be for local authorities and mayors to decide is likely to lead to some heated debates with all interested parties within the local community seeking to make their voices heard and may mean change is still some way off yet.