The Government should not regulate flexible jobs “out of existence” with reforms which will scrap zero-hours contracts, retail industry leaders have warned.

Last week, ministers laid out details for proposals which could ensure guaranteed hours for workers. It started a consultation over potential new rules which would require employers to offer staff on zero hours or short hours contracts a minimum number of hours each week on regular working hours.

The consultation on how to implement the changes, which are due to come into effect next year, flagged that the Government would prefer workers to be guaranteed a minimum of between eight and 20 hours per week, if current contracts are at or below that level.

More than 1 million people in the UK are working on a zero-hours contract basis – where a worker is not guaranteed a minimum number of working hours – in areas ranging from working in pubs and restaurants to warehouses and hospitals.

Peter Kyle, the business secretary, said: “It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds.

“We’re consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market.”

However, the move has come under fire from unions, employers and trade groups.

On Sunday, the British Retail Consortium (BRC) said the proposed reforms are “poorly designed” and would put opportunities for many workers at risk.

Polling commissioned by the organisation found that two-thirds (67%) of part-time workers took their role because they needed flexibility around commitments such as study, childcare and caring responsibilities.

The BRC also highlighted more than half of all retail jobs (57.8%) are part-time.

The Guaranteed Hours consultation comes shortly after the Milburn Review highlighted the scale of the challenge facing youth employment, with more than one million young people aged 16 to 24 not in education, employment or training.

Helen Dickinson, chief executive of the BRC, said: “It’s vital that we don’t regulate flexible jobs out of existence.

“Flexible and part-time work is how millions of people make employment work for them – balancing shifts alongside study, childcare or caring responsibilities, and retail plays a vital role in providing those opportunities.

“For many workers, that flexibility isn’t (just) nice to have – it’s what makes employment possible and allows them to take on extra hours when it suits them.

“Retailers need to offer those additional hours when demand is there, but they cannot guarantee them all-year round.”

A Department for Business and Trade spokesperson said: “Reducing uncertainty over hours and pay will boost living standards for millions of workers, benefit businesses and support economic growth.

“Those offered guaranteed hours will be able to turn them down and remain on their current arrangement if they wish, and employers and workers can express their views on what the impact of different options could be by responding to the consultation.”