On 20th July, a significant milestone was reached in the UK as the Employment Relations (Flexible Working) Bill received Royal Assent, granting employees across England, Scotland and Wales new powers when requesting flexible work arrangements.
The Act, which will take effect immediately, aims to provide employees with greater flexibility over their working hours and patterns, fostering a better work-life balance and potentially boosting businesses' productivity and competitiveness.
Under the new legislation, employees can now make up to two flexible working requests within a 12-month period, doubling the previous allowance of just one. Furthermore, the requirement that the employee must explain in their request what effect the change would have on the employer and how that might be dealt with, has now been removed.
Under the Employment Relations (Flexible Working) Act, employers will have to respond to a request within two months, a notable reduction from the previous three-month timeline. This change ensures that employees receive timely consideration of their requests, allowing them to plan their lives accordingly.
Lastly, the act also introduces a new requirement for employers to consult with employees before denying a flexible working request. This move promotes transparency and communication between employers and their workforce, fostering a more inclusive and supportive work environment.
The Act outlines eight different types of flexible working, which include:
Job sharing: Two or more employees share the responsibilities and hours of a full-time role.
Working from home: Employees can perform their duties from their home instead of the company's premises.
Part-time working: Employees work fewer hours than full-time employees, typically on a set schedule.
Compressed hours: Employees work their agreed-upon hours over fewer days, with longer working days.
Flexible hours: Employees have the freedom to choose their start and finish times within agreed-upon limits.
Annualised hours: Employees work a set number of hours over the year, with varying hours each week.
Staggered hours: Employees have different start, finish, and break times to accommodate individual needs.
Phased retirement: Employees gradually reduce their working hours as they approach retirement.
The new legislation is particularly beneficial for workers as it enables them to hold jobs that better align with their personal circumstances, potentially leading to higher job satisfaction and retention rates.
Business and Trade Minister Kevin Hollinrake stated:
“A happier workforce means increased productivity, and that’s why we’re backing measures to give people across the UK even more flexibility over where and when they work.”
The Act's positive impact extends to businesses as well. Research has shown that companies embracing flexible working can attract and retain top talent, increase staff motivation and reduce turnover rates. The ability to accommodate flexible working arrangements can make a company more appealing to prospective employees and enhance its reputation as an employer of choice.
A recent study by the Chartered Institute of Personnel and Development (CIPD) highlighted the significance of flexible working for employees. The research revealed that 6 percent of employees changed jobs due to a lack of flexible options, while 12 percent even left their profession altogether for the same reason. This accounts for approximately 2 and 4 million workers, respectively, indicating the growing demand for flexible work arrangements in the modern workforce.
To further support the implementation of the Act, the conciliation service Acas updated its statutory code of practice on handling flexible working requests. This update reflects the changes brought about by the new legislation and seeks employers' views on the updates in a consultation process that will conclude in early September.
