New flexible working bill receives royal assent

How will the new flexible working bill be applied?

Employers are not given a specific time limit or instructions on how to conduct flexible work discussions under the new law.

However, employment law advisors have argued that most employers already have a system in place. Many employers are already meeting with employees to discuss their requests and options, so the new law is unlikely to affect most employers’ handling of requests.

For those who don’t meet with employees, the hope is that this will encourage a more transparent, two-way conversation about flexible working requests.

Further advice for employers is that the response time has been reduced to two months, and they should not let this impact their consideration of the request. So, employers should continue to seek agreement to extend the time if needed.

Are there reasons an employer can decline a flexible working request?

Under the Acas code, the eight reasons for HR to reject a request for flexible working are still related to business concerns and how it may affect work performance, quality, or response to demand.

However, employers are advised to consider alternative arrangements before turning down a request.

The new requirement to consult with employees has prompted Acas to update its code of practice on flexible working, placing more emphasis on explaining the reasoning behind rejecting a request.

Employers should be prepared to justify and expand on their decision in writing. The consultation on the changes to the code will be open until September 6, 2023, and HR professionals are encouraged to contribute.

To handle an influx of flexible working requests, the CIPD recommends encouraging a trial period for any flexible arrangement.

Types of flexible working

Employment law professionals advise HR teams to clearly distinguish between various flexible working options and determine what qualifies as a formal request.

According to these professionals, having an existing agile working environment where employees can work from home on certain days is not enough reason to deny a formal flexible working request.

Many jobs can now be done partly remotely, any refusal of a flexible working request must be supported by a strong rationale.

The UK government provides an overview of eight different types of flexible working. These include job sharing, working from home, part-time working, compressed hours, flexible hours, annualised hours, staggered hours and phased retirement.

Tax and flexible working

When it comes to the tax implications of flexible working arrangements, it’s crucial to consider the employment status of the worker.

If an employee requests flexible working and remains an employee, there shouldn’t be any tax compliance issues. However, if a self-employed person works like an employee, it can impact their employment status compliance, and businesses may be responsible for unpaid employment taxes.

To avoid tax liabilities, employers need to carefully assess the employment status of all self-employed workers from the beginning of their contracts.

The UK government’s Check Employment Status for Tax (CEST) tool can be useful, and the government has published guidance on the definitions of employees, workers, and self-employment to assist HR advisers.

In complex cases, it may be necessary to seek advice from specialist HR consultancies.

Free HR advice for small business owners

It should be a top priority for employers to have the correct policies and procedures in place to ensure you are treating all your staff fairly and equally.

Implementing new policies can be tricky sometimes, especially when you have a small business and don’t necessarily have an HR team to apply them for you. That’s why we provide initial free HR advice for small businesses.

We offer 24/7 assistance to guide you through the processes and procedures for HR and employment law issues.

Please speak to one of our HR and employment law advisors free at 0800 152 2287 or fill in the form here to request a callback.