Review of new flexible working plans ‘mooted’

20 October 2008

The government may be considering a revision of its plans to extend the right to request flexible working to some 4.5 million parents.

Under the proposed legislation, the right to ask to work flexibly was due to include all working parents of children aged 16 and under as from April of next year.

Currently, only parents of children who are aged six or under or who are disabled have the right to make a request.

However, it has been rumoured that Lord Mandelson, the new Business Minister, has ordered a review of forthcoming employment regulations in an effort to ease the burden on firms struggling with the economic downturn.

Other recommendations, including the extension of paid maternity leave from 39 to 52 weeks and the introduction of a new bank holiday, may also be shelved.

A government spokesman said that “no decisions” had yet been made on a postponement to the changes.

The Department of Business is reported to be compiling an action plan aimed at bolstering business activity during the forthcoming recession, of which any amendments to employment law will only be a part.

Other supportive measures include moves to help small business cashflow by asking local authorities to follow central government in paying suppliers within 10 days.

HM Revenue & Customs will also be asked to demonstrate flexibility in their dealings with small firms.

Lord Mandelson said: “What we’ve got to do is get the government and the public sector working hand in hand with the private sector and the business community to make sure everything we need to do at this stage is done.”

John Wright, the national chairman of the Federation of Small Businesses, welcomed the possible delay in implementing the employment reforms.

He said: “Increased regulation can impact the growth potential of small businesses so a postponement of changes to flexible working will provide respite for businesses. We are also pleased with the government’s proposal to pay bills to small businesses within ten days. To this end we have also written to local authorities urging them to undertake similar measures and to pay their small business suppliers as early as possible.”

However, Jackie Orme, chief executive of the Chartered Institute of Personnel and Development (CIPD), argued that any deferment of the new flexible working proposals would reinforce the assumption “that flexible working is a burden on business, and the kind of charitable extra that can be cut back in tougher times”.

Jackie Orme added: “The reality is that flexible working can deliver competitive advantage by improving employee engagement and attracting talented people to organisations that otherwise might remain outside the workforce.”