A Guide to Flexible Working for Employers

The UK workforce has become more diverse, reflecting changes in society: for example, an increase in women at work, single parents and our ageing population.

Domestic and family responsibilities have also shifted over the years and, in response, legislation has evolved and changed to offer both men and women the opportunity to request flexible working.

Flexible Working can cover working different times/hours or working from a different location. For example:

• Part-time hours
• Flexi-time
• Compressed working hours
• Job sharing
• Shift work
• Working from home
• Career breaks
• Annual hours.

The need to provide parents with more flexible working patterns was identified following the issue of the Government’s Green Paper – “Work and Parents: Competitiveness and Choice” in 2000.

The Government subsequently set up the Work and Parents Taskforce to consider the issue of working parents and flexible working. They submitted their final report – “About Time: Flexible Working” at the end of 2001 and this has formed the basis of the Act which covers eligibility and procedural requirements.

It was since updated in June 2014 to extend the right to request flexible working to all employees and now the Employment Relations (Flexible Working) Act has come into effect as of 6 April 2023. This means employees can request flexible working from day one in a new job.

Why Should Employers Take Flexible Working Seriously?

Cost Savings Due to Reduced Absenteeism

Flexible working could help to reduce employee absence. Many progressive companies believe that by allowing workers time off to deal with personal issues and childcare, there is less likelihood of employees having to resort to calling in sick.

Improved Retention Rates

Those skilled employees who take on parental responsibilities may find it difficult to juggle full-time office-based work with childcare issues. Offering flexibility helps to retain those may have otherwise left an organisation to seek flexible work elsewhere. This provides cost savings through not having to recruit or train replacements.

Increased Flexibility for Customers

In our increasingly global environment with rising customer expectations of service levels, access to products and so on, offering flexible working can mean that employers are able to adapt more effectively to their customers’ needs.

Whilst the initial steps in deviating from historical working patterns and practices can seem daunting, benefits to customers and the business in the long term can be realised.

Improved Employee Motivation and Reputation as an Employer

Whilst a desire for flexible working may not be a motivator for all employees, those who have been offered the opportunity to balance their work and home life tend to be extremely grateful.

Indeed, within companies offering flexible working opportunities to all employees, irrespective of legal obligations, employee engagement and satisfaction ratings tend to be higher.

Employees generally are more motivated and committed – and prepared to go the extra mile if they feel their employer is accommodating their requirements.

High-performing employees are likely to have more choices in terms of employer. So, offering flexible working as a benefit is likely to give employers greater access to the best employees, as they will be seen as an employer with a good reputation for balancing business and employee needs. Moreover, since Covid, employees expect flexible working.

Move With the Times

It seems we are moving into a new world where people will work different hours at different stages of their lives, utilising fast-moving technological advances.

Some would also say that employers have a social responsibility to enable a wider range of people to access and stay in work, including those with caring responsibilities.

Employers need to consider how they want to be perceived by current and prospective employees, and also what kind of corporate values they hold.

Stakeholders and customers alike will also likely be influenced by both the working environment created by the employer and the employer’s approach to the community and society.

Aside from any social arguments, there are robust business benefits to be gained from being more progressive:

Home working can reduce overhead costs for employers. By recognising that much work can be carried out on remote technology (ie computers, telephone etc), employers can often utilise home working requests to their advantage. Limited interruptions, too, can serve to increase productivity.

The Rules…

Under the new rules, people can apply for flexible working from day one in a new job and can make up to two applications a year. This can be to change:

• the number of hours they work
• when they start or finish work
• the days they work
• where they work.

Making the Application…

The application must be made to the employer in writing, by email or letter. The application must include:

• the date
• a statement that this is a statutory request for flexible working
• details of how the employee wants to work flexibly and when they want to start
• a statement saying if and when they’ve made a previous application, including the date of any previous request.

The Process

The basic steps are:

• The employee writes to the employer.
• The employer considers the request and make a decision within two months – or longer if agreed with the employee. Employers must deal with requests in a ‘reasonable manner’. Examples of handling requests in a reasonable manner include: assessing the advantages and disadvantages of the application; holding a meeting to discuss the request with the employee; and offering an appeal process.
• If the employer agrees to the request, they must change the terms and conditions in the employee’s contract by writing to the employee with a statement of the agreed change and a start date for flexible working
• If the employer disagrees, they must write to the employee giving the business reasons for the refusal. The employee may be able to complain to an employment tribunal.

Tips for Managers…

When considering the request, managers should ask the following questions to make sure they have thought about every aspect of the proposal. Just because something has ‘not been the norm’, it doesn’t mean it wouldn’t or couldn’t work now and in the future.

Thinking outside the box could enable you to turn a request into a positive opportunity for the business.

Job Analysis Questions

• Do the employee’s proposed hours fit in with the tasks outlined in the role?
• If not, could the tasks be divided up differently?
• Could you re-allocate some of the work to another team member?
• What will be the impact on customers of this change – could it be used to our customers’ advantage?
• Is there a compromise that could be reached that will satisfy the individual’s requirements as well as the company’s objectives?

Managing the New Arrangements

• How will the new arrangements be supervised and performance measured? Ensure outputs can be measured where possible and not the number of hours worked – set clear objectives and measure quality of service/work. Obtain and give feedback regularly.
• Will the long-term benefits outweigh the short-term costs of implementing the change?
• Will there be any Health and Safety considerations? For example, a Health and Safety Workstation assessment will need to be completed for those working from home.

Impact On the Team

• Advise other team members of the change
• Ensure flexible workers remain informed and arrange for all important information to be forwarded to them
• Involved flexible workers in all aspects of team-working.

Making it Work in Practice

Job sharing

This normally consists of two individuals sharing a full-time position, in varying proportions (ie 50/50 or 60/40 etc). However, they should have separate employment contracts stating the agreed hours to be worked accordingly. Many arrangements allow for some overlap to ensure sufficient communication and handover.

With notice, some job share individuals will be happy to cover their “partner’s” absences during holidays etc, without the need to source additional temporary support.

Job sharing may come about by two current employees agreeing to share a role, or by a previously full-time employee wishing to reduce their hours and the employer agreeing to advertise the rest of the role as a job share position.

Whilst there may be some additional costs incurred (due to some overlap of hours for handover purposes, some benefits not able to be pro-rated eg Private Medical Insurance etc), once established, most job share arrangements offer the employer increased flexibility and the benefit of higher morale and commitment.

Whilst managing two individuals rather than one may sound onerous, their different skills and working styles may complement each other and provide you with a wider array of skills and abilities.

Home working

This can often be an ideal solution for companies wishing to implement office or desk sharing, thus saving on overhead costs. Furthermore, certain duties or aspects of a role can be carried out very productively from home – with no office distractions or interruptions.

Whilst historically there have been concerns about how to manage employees remotely, many companies now measure success on outputs and quality of work – and have found that home working can be extremely productive. It may be worth employers reviewing their approach to appraisals and criteria for measuring performance – they need to remember that just because someone is located in the office where they can be ‘supervised’, it doesn’t mean they’re more productive than someone working from home with specific duties and tasks to perform.

A Workstation Assessment should be carried out to ensure compliance with Health and Safety regulations. Also, consideration should be given to the confidentiality of information being accessed from home. However, these issues are easily overcome and can be outweighed by cost savings and increased productivity, as well as higher employee motivation and commitment.

Refusing the Application?

Managers will need to have a meeting with the employee before rejecting an application and must give a valid legitimate business reason. They will need to think about their reasons carefully. Applications for flexible working arrangements can be refused only for the following reasons:

• The additional costs will impose a burden.
• Agreeing to the request will have a detrimental effect on the ability to meet customer demand.
• Inability to re-organise work among existing staff.
• Inability to recruit additional staff.
• Agreeing to the request will have a detrimental impact on quality.
• Agreeing to the request will have a detrimental impact on performance.
• There is insufficient work during the periods the employee proposes to work.
• There are planned structural changes.

There is no statutory right to appeal against a rejection, but it is advised under the terms of handling a request in a reasonable fashion.

Failure to follow the guidelines could lead to a claim – the time limit for bringing a claim to an employment tribunal is three months from the date the employee is notified of the decision on appeal or breach of this procedure.

If the claim is successful, the tribunal may order the employer to reconsider the request and award compensation.

This overview is intended for general advice only – employers should consult an employment lawyer for further assistance with legal matters. More information is available from Acas.

This article by Jane Barclay first appeared on workingwise.co.uk on 26 September 2019. WM People's assets, including workingwise.co.uk were acquired by 55/Redefined in 2024.