Flexible Working Act
The Employment Relations (Flexible Working) Act 2023
After receiving Royal Assent in July, consultations regarding The Employment Relations (Flexible Working) Act 2023 ended earlier this month and it is expected to become law in early 2024. Although there may be further related statutory changes in the future, we thought we would update you on the latest legislation
At the time of writing, there hasn’t been any formal guidance published on how flexible working consultations should be approached. We have therefore summarised key points of the Act for employers, so you know the new rules for responding to flexible working requests.
Employees expect flexible working
The Act was introduced as a response to changes in post-pandemic employee working habits. Due to the high number of people continuing to work from home, the hybrid workplace has become a permanent feature of modern-day employment.
According to LiveCareer, 30% of job candidates stated flexible working as the most important work benefit. If employees want to retain staff and maintain workplace morale, they need to embrace the new flexible working rules. Even when an employee has an agile working approach, for example, a day a week at home, flexible working requests must still be considered.
Changes to flexible working requests
Please find below the changes to legislation relating to flexible working requests:
2 months – this is the new response time for employers to respond to requests, which has reduced from the previous 3-month time period.
Employee consultation – if an employer decides to refuse a flexible working request, they must consult the employee beforehand.
Workplace impact – employees no longer need to explain how their flexible working request will affect the employer, which was previously required.
Two requests per year – this is the total number of flexible working requests an employee can make within a 12-month period.
Employees will still have to complete 26 weeks of service before they can make this type of request. Although we would have liked to have seen a change to the day-one right to making flexible working requests, this has not yet changed. The government, however, are still considering day-one rights, and this could be written into law in the near future.
Can you say no to requests?
There are several instances where you can say no to a flexible working request, and these have not changed from previous legislation. Although Acas will be updating its own code of practice, general grounds for refusal include cost impact and negative effects on the business. Many businesses find they cannot reorganise employees’ work due to how they operate, but it’s crucial they follow the statutory rules for refusal.
The rules around appeals and tribunals have not changed, so employers could find themselves facing claims if they don’t handle flexible working requests correctly. Make sure you respond to requests within the 2-month response time. We always advise encouraging open dialogue with your employees when they come to you with such a request.
There may be legitimate reasons for the flexible working request, which may lead to greater productivity if granted. An employee might be juggling carer responsibilities or a health condition. According to The Institute for Employment Studies, flexible working can increase employee engagement, resulting in an 87% average decrease in employee turnover.
In many cases, a compromise will need to be found, which could be in the form of trial periods or rotating working patterns. Flexible working can cover several situations, such as working part time, from home for a few days a week, or job sharing. It could also cover different patterns of working hours and even a phased retirement plan. There will be tax implications, so it’s important that employers get professional advice before proceeding.
For more guidance, please read our blog How to manage a flexible working request.
Review your flexible working policy
As an employer, it’s important that your company stays compliant with The Employment Relations (Flexible Working) Act 2023. This will enable you to respond in the right way to any flexible working requests from your employees.
Review and update your flexible working policy to ensure it reflects current legislation. Issue a revised copy to all your employees, so they are also aware of the changes. This will make it easier to discuss any potential issues with future flexible working requests.
We will continue to update you with any changes to the Act, so please keep an eye on our blogs over the coming months.
If you have concerns about how to respond to flexible working requests, please speak to us. Invictus HR can help you develop, update and implement new policies and practices. We offer retained HR services, ad hoc support, strategic HR projects and mentoring, training and development for managers.
If you would like guidance on flexible working or you need HR advice on another matter, please get in touch.
Sources:
Employment Relations (Flexible Working) Act 2023 PDF
https://recruiter-on-demand.com/2023/07/25/flexibility-in-2023/
https://www.hrmagazine.co.uk/content/news/flexible-working-bill-receives-royal-assent-what-hr-needs-to-know
https://www.acas.org.uk/responding-to-a-flexible-working-request/if-the-request-is-not-possible