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Employment
Credit Crunch Conundrum: how flexibility can help businesses to safeguard their talent pool
Enterprising Scotland
November 2008
Recent research by Accor Services reports that flexible working options are at the top of the list of the most wanted staff benefits and The Equal Opportunities Commission reports that 52% of men and 58% of women say they want to work more flexibly. But in the challenging current economic climate, flexible working practices can also prove advantageous to employers, presenting a viable alternative to redundancy by helping companies to reduce costs and maintain its pool of talent.
In line with the Employment Act 2002, an employee is currently entitled to flexible working arrangements if they have at least twenty-six weeks' continuous service and currently be responsible for caring for a child under six. The age limit for a disabled child is currently eighteen and from April 2007, this right was extended to employees who care for dependent adults. However, the Government has proposed that the age limit be increased within the next two years to cover all children under sixteen.
Flexible working encompasses a whole variety of arrangements, including part time working, job sharing, home working, term time only working and flexi-time schemes. But if an employee switches to working entirely at home or reduce their hours on a flexible basis, then there are significant employment law issues and practicalities that employers need to be consider when such arrangements are put in place.
The best way for an employer to achieve a variation in an employee's working arrangements is with their consent. From the employee's perspective, they have the right to request to request a change of hours, a change of times when they are required to work or to work from a different location.
If flexible working arrangements are agreed, the employer should issue a new contract setting out the agreed terms, or at least write to the employee setting out the agreed changes. Employers should always record whether any agreed changes are of a permanent or temporary nature. If they are of a temporary nature, then a date to revert to pre-existing arrangements should be agreed. The employer should also consider whether the matter should be reviewed at a particular date following a trial period. If an employer agrees to a change on a temporary basis and later decides that it wishes to revert to pre-existing conditions, then care must be taken to consider whether or not this decision can be justified.
One common method of flexible working is home working. Employers have reported a number of benefits to employees working from home including, reduced overhead costs, increased productivity, improved retention of skilled employees and better employee motivation. Some organisations have also experienced an improved ability to withstand external disruptions such as transport problems or extreme weather conditions. But there can also be drawbacks to home working, such as duplication of equipment, loss of day-to-day control of employees and damage to team working and culture. However, the concerns of some employers that home workers do not pull their weight are generally misplaced and the opposite is often true.
If home working arrangements are agreed, employers should ensure that the contract of employment is changed to reflect the agreed place of work. A requirement that the home worker attends the employer's premises from time to time is usually desirable. Clear boundaries establishing the hours of work should be set down. Employers should also take particular care that the salary and benefits provided to the home worker are equal to those of comparable employees to avoid any possible sex discrimination or equal pay claims. It is also advisable for the employment contract to contain a right to enter the employee's home in certain circumstances, such as to recover its property on termination.
Many home workers use telephone and computer equipment and employers should consider the external monitoring of such communication systems. The employee's consent to this should be sought, prior to home working commencing, and a suitable policy should be established to clearly set out the rules. Employers should also ensure that their insurance policies apply to any equipment of the employer's in the employee's home and that their employer's liability insurance covers employees working from home.
Health and safety obligations of the employer will extend to employees working from home. Employers should therefore conduct risk assessments for home workers to identify potential hazards and assess risk and either carry out health and safety assessments of the employee's workstation at their home or, place an obligation on the employee to do so and to remain compliant with the employer's health and safety policy. Common risks for home workers include stress caused by the isolation of being at home alone, hazards caused by work equipment, poor home lighting, the use of electrical equipment and first aid provision. The employer should also establish a proper procedure for accident reporting.
However, with some forward planning to address the legal and practical issues, flexible working can be a viable way for employers to cut costs and maintain the talent pool and maintain the talent pool as the credit crunch bites.
In line with the Employment Act 2002, an employee is currently entitled to flexible working arrangements if they have at least twenty-six weeks' continuous service and currently be responsible for caring for a child under six. The age limit for a disabled child is currently eighteen and from April 2007, this right was extended to employees who care for dependent adults. However, the Government has proposed that the age limit be increased within the next two years to cover all children under sixteen.
Flexible working encompasses a whole variety of arrangements, including part time working, job sharing, home working, term time only working and flexi-time schemes. But if an employee switches to working entirely at home or reduce their hours on a flexible basis, then there are significant employment law issues and practicalities that employers need to be consider when such arrangements are put in place.
The best way for an employer to achieve a variation in an employee's working arrangements is with their consent. From the employee's perspective, they have the right to request to request a change of hours, a change of times when they are required to work or to work from a different location.
If flexible working arrangements are agreed, the employer should issue a new contract setting out the agreed terms, or at least write to the employee setting out the agreed changes. Employers should always record whether any agreed changes are of a permanent or temporary nature. If they are of a temporary nature, then a date to revert to pre-existing arrangements should be agreed. The employer should also consider whether the matter should be reviewed at a particular date following a trial period. If an employer agrees to a change on a temporary basis and later decides that it wishes to revert to pre-existing conditions, then care must be taken to consider whether or not this decision can be justified.
One common method of flexible working is home working. Employers have reported a number of benefits to employees working from home including, reduced overhead costs, increased productivity, improved retention of skilled employees and better employee motivation. Some organisations have also experienced an improved ability to withstand external disruptions such as transport problems or extreme weather conditions. But there can also be drawbacks to home working, such as duplication of equipment, loss of day-to-day control of employees and damage to team working and culture. However, the concerns of some employers that home workers do not pull their weight are generally misplaced and the opposite is often true.
If home working arrangements are agreed, employers should ensure that the contract of employment is changed to reflect the agreed place of work. A requirement that the home worker attends the employer's premises from time to time is usually desirable. Clear boundaries establishing the hours of work should be set down. Employers should also take particular care that the salary and benefits provided to the home worker are equal to those of comparable employees to avoid any possible sex discrimination or equal pay claims. It is also advisable for the employment contract to contain a right to enter the employee's home in certain circumstances, such as to recover its property on termination.
Many home workers use telephone and computer equipment and employers should consider the external monitoring of such communication systems. The employee's consent to this should be sought, prior to home working commencing, and a suitable policy should be established to clearly set out the rules. Employers should also ensure that their insurance policies apply to any equipment of the employer's in the employee's home and that their employer's liability insurance covers employees working from home.
Health and safety obligations of the employer will extend to employees working from home. Employers should therefore conduct risk assessments for home workers to identify potential hazards and assess risk and either carry out health and safety assessments of the employee's workstation at their home or, place an obligation on the employee to do so and to remain compliant with the employer's health and safety policy. Common risks for home workers include stress caused by the isolation of being at home alone, hazards caused by work equipment, poor home lighting, the use of electrical equipment and first aid provision. The employer should also establish a proper procedure for accident reporting.
However, with some forward planning to address the legal and practical issues, flexible working can be a viable way for employers to cut costs and maintain the talent pool and maintain the talent pool as the credit crunch bites.
