For several years, employees have had a right to request a flexible working arrangement, and in April 2024 these rights were expanded.
Currently, employees have a day one right to request flexible working. This must be made formally in writing, specifying what flexibility they desire and when they want it to start; as well as stating if and when they have made a previous request.
Each employee can do this twice in a 12-month period.
As an employer, you have a legal duty to consider the flexible working request in a reasonable manner and come to a decision within two months. There is an Acas code of practice to follow and this cites considerations like consulting with the employee, being mindful of the Equality Act in relation to a flexible working request and being timely.
There are plenty of legitimate reasons why you may not grant a request, such as imposing an additional cost burden on you, having a detrimental impact on quality or performance, or an inability to reorganise work amongst other staff.
Whatever your decision, put it in writing and if necessary make amendments to the employee’s contract.
A snapshot of flexible working in 2024
Even before the latest rule change (in April 2024), flexible working was well entrenched in UK industry.
According to statistics published on Statista for 2024, there are already millions of flexible working contracts in operation in the UK: 4.2 million flexi-time contracts; 2.1 million annualised hours contracts; 1.3 million term-time working contracts; 1 million zero-hour contracts; 813,000 on-call working contracts; 504,000 condensed-hours contracts; and 88,000 job sharing contracts.
That hints at the wide range of possible types of flexible working arrangements that can be considered, and it doesn’t even cover those working from home.
Media speculation
In the King’s Speech, Labour confirmed its intention to make flexible working the default from day one for all workers.
Media speculation in late August, fuelled by a ministerial radio interview, suggests the current mood music is around, where feasible, a four-day working week: the full-time hours of a five-day week being compressed into four days.
Cross-referencing that against the statistics above, and it would fall into one of the less popular forms of flexible working at present: the half million or so condensed-hour contracts.
Anecdotal evidence from a six-month trial of four-day working weeks in 2022 was mixed. For example, one environmental consultancy has stuck with it saying it boosted staff happiness and helped with recruitment.
Conversely, an engineering and industrial supplies company struggled with the trial and abandoned the practice – employees were over-busy on their days on and exhausted on their days off. Staff cover was also an issue when things like holiday and sick days were thrown into the mix.
Balancing the needs of employers and employees
There is no doubt that flexible working has an important role in 21st century Britain. It helps working parents (especially women), and other carers, better participate in the workforce; can suit businesses; give better work/life balance; lead to better workplace relations; and make the jobs market more efficient – say if candidates from further afield can be considered with some remote working.
However, government mandated flexible working arrangements, imposed on businesses where they simply do not fit, will not be welcomed; and it is hard to see how these will “be good for productivity”.
Time will tell what happens as legislation is presented to parliament. But I urge that the voice of the SME is heard as decisions are made.
