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Flexible working rule raises hackles
Millions of parents are to be given the right to demand family-friendly working hours despite employers' fears they will not be able to cope amid the recession.
- By Myra Butterworth and James Kirkup, Telegraph Group
- Published: 23:44 April 4, 2009
London: Millions of parents are to be given the right to demand family-friendly working hours despite employers' fears they will not be able to cope amid the recession.
Under the new rules - which come into force this week - an extra 4.5 million parents with children aged up to 16 will be allowed to request to work more flexible hours.
Senior ministers including Business Secretary Lord Peter Mandelson have tried in vain to delay the introduction of the regulations as they recognise businesses are already struggling to cope with the worst economic crisis since the Great Depression. But, after a fierce Cabinet row, they have been over-ruled by colleagues and now companies are warning they have to cope with a potentially damaging burden at the worst possible time.
While the move will be welcomed by parents across Britain, firms claim the introduction of the rules will be a devastating financial blow to firms that are already struggling to survive amid the economic downturn.
Tens of thousands of businesses have collapsed in recent months and many more face following suit as they fail to secure enough work to maintain their existing staff levels.
"The smallest businesses need their key members of staff to be present in the workplace wherever possible," said Phil Orford, chief executive of the Forum of Private Business.
"Many are already struggling with mounting costs and increasing bureaucracy, and this will only add to their difficulties."
David Frost, director general of the British Chambers of Commerce, said: "Businesses are focusing on survival during this recession, so they cannot be burdened by more changes to employment law. The government should be enforcing a moratorium on extra regulation."
In an attempt to ease the fears of employers, company bosses are allowed to refuse any request that may harm the business. For example, a company may decline the request due to the extra cost burden, being unable to organise the business among other members of staff or being unable to recruit additional staff.
However, the bureaucracy involved in processing such a claim is time consuming, say employers. Failure to implement the rules equally to all staff also opens them up to potential employment tribunal challenges.
John Wright, national chairman of the Federation of Small Businesses, said: "We are sorely disappointed that cabinet agreement could not be reached on delaying the extension to flexible working.
"Many small firms already carry out flexible working informally with their staff without the need for overly prescriptive legislation. Now is not the time to deluge employers with requests for more and more meetings to formally agree new working arrangements."
Last autumn, there had been speculation that the reforms would be shelved after Lord Mandelson, the Business Secretary ordered a review into the proposals. But the move was resisted by Yvette Cooper, Chief Secretary to the Treasury, and the Government went ahead with its plans.
However, plans to extend paid maternity leave from nine months to a year could still be threatened. Business would welcome any delay of plans to allow mothers to get a longer period of leave on full pay.
The Confederation of British Industry and Institute of Directors claimed the new flexible working rules will cost companies an extra £69 million (Dh374 million) a year.
Trades Union Congress general secretary Brendan Barber said: "Workplaces where employees can alter their working patterns to fit around their busy lives and commitments outside the office will feel less stressed and anxious and so be more committed and productive at work."
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