Flexible Working Act 2023 – Passed through parliament
The Employment Relations (Flexible Working) Act 2023, referred to as the “Act,” has been officially passed by parliament and received Royal Assent on 20th July 2023. The primary motivation behind introducing this Act was to address the swift transformation in work patterns resulting from the COVID-19 outbreak. As a consequence of the pandemic, a considerable number of employees in the UK were required to adapt to remote work from their homes. The Act aims to provide a legal framework to accommodate and regulate these changes in the working environment.
Overview of changes
The main goal of the Act is to make it simpler for employees to request flexible working arrangements. While it doesn’t guarantee an automatic right to flexible work, its purpose is to encourage open communication between employers and employees about flexible work options. The Act recognises that different industries have varied requirements, so it avoids a rigid, one-size-fits-all approach to reform.
A summary of the changes can be found below. The implementation date is not yet confirmed. However, you need to be prepared as you will potentially see an influx of requests if employees are aware.
For how long must an employee be in continuous employment before they can make a FWR?
Current law: 26 weeks
Reforms: 26 weeks
What is the number of FWRs an employee can make in any given 12-month period?
Current law: One
Reforms: Two
How long do employers have to respond to an employee’s FWR?
Current law: Three months
Reforms: Two months
Does the employee have to be consulted by their employer before the latter refuses a FWR?
Current law: No
Reforms: Yes
Is there a requirement for the employee to explain the effects that flexible working will have on the employer and how this might be mitigated?
Current law: Yes
Reforms: No
The Act was proposed to grant employees the right to make a flexible working request (FWR) from day one of employment. However, it does not currently include such a provision. Nevertheless, the government has expressed its intention to eliminate the 26-week qualifying period for making FWRs in the future.
Employers should also remember that they are still under a duty to deal with applications reasonably and within the prescribed time frames. Additionally, if an employer does decide to reject the application, they can only do so while relying on one of the eight statutory grounds.
Given that the process for appeals and tribunal complaints remains the same, employers should prioritise adhering to the statutory procedure to minimise the risk of facing a claim against them.
ACAS is currently updating its Code of Practice to align with these reforms. During this phase, employers have the opportunity to participate in the process by providing feedback on the draft of the updated code. The consultation period is currently underway and will conclude on 6th September 2023.
Best HR thoughts
It’s essential to be aware of the recent Employment law update in July 2023, as it may have implications for your business. Taking proactive measures is advisable, rather than reacting later when the changes come into effect. While remote work and hybrid working are becoming more prevalent in today’s world, it’s important to assess whether these models align with your business operations. We’ve observed a substantial increase in work-from-home requests this year, with approximately 38% of our client’s employees seeking such arrangements. However, not all requests were granted due to compatibility issues with their respective business operations. Carefully evaluating the impact of these changes on your business will help you make informed decisions regarding flexible working arrangements.
When dealing with these requests, it needs to highlight the importance of maintaining a robust paper trail for all applications. This practice serves as an important safeguard to minimise potential risks, particularly the risk of facing a tribunal. By diligently documenting the entire process, you create a solid record that can provide protection and support in case of any legal issues that may arise. So, ensure that proper documentation is in place to protect both the business and the individuals involved.
If you decide to approve working-from-home arrangements, make it clear that it’s a trial period, and this will be reviewed on a regular basis to assess its suitability for both the employees and the business. If this arrangement is not working out, make it clear this will be removed at any point, and the employee with be given enough notice. Additionally, ensure you have a well-defined policy in place with strict criteria. For instance, employees under a Performance Improvement Plan (PIP) should be required to work from the office and not from home, and the employees must attend the office when required for the needs of the business or be at client meetings (face-to-face) etc.
By adopting this approach, you can create a fair and effective working-from-home system that safeguards the business. It becomes a win-win situation for both the employer and the employees. This way, you ensure a balanced arrangement that benefits everyone involved and protects the business’s interests while accommodating the needs of the workforce.
To assist you in establishing these measures, Best HR is here to support you. If you require any help in developing a strategy to effectively handle the situation or need your current HR policy reviewed, please do not hesitate to reach out to us.
