From April this year an extra 4.5 million employees will have the right to request flexible working. But what does it mean for small businesses?
There is likely to be a great deal of controversy around the latest extension to the right to request flexible working. Previously the legislation only benefited parents with children under six years old, or up to 18 if the child is disabled. However, from 6 April 2009, employees with parental responsibility for children aged 16 and under will benefit, opening the right to request part-time working, flexi-time, staggered hours, homeworking or job-sharing to significantly more families across the UK.
The Federation of Small Businesses has already expressed concern. When the changes were announced last year, its employment chairman, Alan Tyrell, said the new rules could be "damaging to small businesses, and, as a result, the millions of people they employ".
There is no doubt that there will be a cost to businesses, particularly given government estimates that suggest an extra 4.5 million people may now benefit from the rights. Further estimates state that 270,000 applications per annum are likely to be accepted by employers.
The cost to the employer is twofold. First, there is the cost of considering and dealing with a request. Businesses have a legal duty to give a flexible working request serious consideration. There is a clear procedure and timetable that employers must follow when dealing with a flexible working request. If the request is refused, the employer must set out the grounds for refusal and a sufficient explanation as to why those grounds apply. The reasons to refuse a request are limited to:
• Planned structural changes
• The burden of additional costs
• A detrimental impact on quality
• The inability to recruit additional staff
• A detrimental impact on performance
• The inability to reorganise work among existing staff
• A detrimental effect on ability to meet customer demand
• A lack of work during the periods the employee proposes to work
Second, and more significant, is the cost of implementing a change, which includes any cost associated with a change to an employee's hours. For example, it may be necessary, in some cases, to bring in additional staff to cover any work that has not been completed. Companies may also need to invest in new technology to enable certain flexible working methods, such as improved network security for those working from home.
However, there are also a number of benefits to employers. These include increased morale, reduced turnover of staff, reduced absenteeism and retaining talent. People who are working hours that suit them tend to be more motivated and thus more productive.
These new rights may also go further towards removing any remaining stigma that is attached to part-time working. With more people across all different levels now starting to take up their right to request flexible working and people with caring roles exercising their rights, there is a realisation that working reduced or flexible hours can have advantages for everyone.
Judith Watson is employment partner at Cobbetts LLP
Posted 02 April 2009 : Director.co.uk
