I beg to move, That the Bill be now read the Third time.
I am delighted that we are here today to take a further step towards introducing important changes to the right to request flexible working. The changes will help to set the right conditions for employees and employers to realise the benefits of flexible working.
Throughout the passage of the Bill, I have spoken of the importance of flexible working in helping to remove some of the invisible restrictions that hold people back in the workplace. These can include the need to live in high-cost accommodation in city centres or the need to maintain working arrangements that are hard to combine with caring responsibilities. Offering flexibility to balance work and home life can be key to ensuring participation and progression in the labour market and to opening up employment and promotion opportunities for everyone, regardless of their age, gender, disability or location.
The Bill is for the mothers who have to leave their jobs because those jobs do not support flexible working. The Bill is for those with chronic long-term conditions, the disabled and the most vulnerable in our society, who desperately need the flexibility so that they can continue to work while managing their health conditions and the toll that it can take on their mental health. The Bill is for working families—those with young children—who are working hard and trying to make ends meet in a cost of living crisis.
Throughout the Bill’s passage, Members from across the House have been keen to point out the business benefits associated with the take-up of flexible working arrangements. By removing these invisible restrictions, flexible working fosters a more diverse workforce, and evidence shows that this leads to improved financial returns for businesses. Furthermore, workers who have more flexibility are more motivated at work and are more likely to stay with their employer. Of course, there is a strong and unmet demand for more flexible jobs; research conducted by behavioural insight teams shows that offering flexible working can attract up to 30% more applicants for job vacancies.
The successful passage of this Bill would introduce changes to the existing right to request flexible working. That right was first introduced in 2003 for employed parents, and carers of children under the age of six and of disabled children under the age of 18. The legislation has since been amended several times, more recently as part of the Children and Families Act 2014; that was when the right was extended to all employees with 26 weeks of continuous service.
The right allows employees to request changes to their work arrangements and requires employers to properly consider those requests, although—and this is important—they do not have necessarily to agree to them. I recognise that not all organisations will be able to accommodate all forms of flexible working, so this Bill makes some changes to the legislation while retaining the fundamental approach of balancing the needs of both parties. It focuses on setting the right conditions so that employees and employers can have an open-minded conversation about what flexible working arrangements might be possible in any given context.
As the hon. Lady has just said, the word “consult” will be in the legislation; as a fellow lawyer, she will recognise that the matter will be litigated at great length before the employment tribunal. Will she go into more detail about what “consult” specifically means and about the requirements on the employer? Will it simply be a conversation or a formal meeting? What does “consult” mean if employers are to act in line with statutory requirements?
I think that in this context “consultation” means having a proper discussion with employees.
For many employers, what I have been discussing will already be a standard practice but the measure is an important step to ensure that we have consistency across the board. More positively, it will give both parties the opportunity to explore whether alternative workable options may be available before the conversation is closed and a final decision is reached.
The second measure will allow employees to make a second statutory flexible working request within any 12-month period. We all appreciate that a lot can happen in a year. Someone could unexpectedly become a carer or be diagnosed with a long-term health condition, meaning that their working arrangements are no long sustainable. The legislative framework needs to be sufficiently flexible to account for those realities. Amending it in this way will ensure that the right is more responsive to an individual’s needs and helps to avoid negative outcomes. The worst case scenario is when the individual feels that the only option is to drop out of work.
The third measure will reduce from three months to two months the statutory time frame in which employers are required to respond to a request. That is partly about encouraging responsiveness and partly about bringing the legislation up to date. In the event that an individual’s circumstances change unexpectedly, they will be likely to need a quick response so that they can adapt to the changes as efficiently and effectively as possible. More broadly, it is a fact that technology, processes and our understanding of flexible working have all advanced over the last decade and the legislation should be updated to reflect those changes.
The fourth measure will remove the requirement for employees to explain what effect the change applied for would have on the employer and how that effect might be dealt with. It seeks to make sure that the legislation does not unfairly favour those with more experience or who can better articulate themselves in written submissions.
I rise in support of the Bill and I pay tribute to the hon. Member for Bolton South East (Yasmin Qureshi) for her incredible work to ensure that it reached this stage. I also thank the Minister and his team for their work to ensure that it happened.
I am slightly biased, because I was a Minister for a short period and worked on the Bill with the hon. Lady. Its importance goes beyond politics and party lines, so I am pleased that hon. Members have come together to ensure that it goes through to the next stage. I hope that, when it reaches the House of Lords, the Lords realise how important it is to this place and to society. During the pandemic, and in the lead-up to it, society changed and flexible working became much more important to us, because the technology had finally caught up with where society wanted to be.
The challenge is that we live in a fast-paced, 24/7 world where it is easy to be switched on all the time. Sadly, some workplaces expect us to be switched on 24/7, which can be challenging for families, parents and everyone. It also means, however, that we can be switched on to work from home, when it is beneficial to be at home or to be flexible in the hours that we work, and so fulfil our duties as family members, parents, siblings and carers while delivering on the job at hand. Flexible working is often seen through the lens of workers, and that is absolutely right, but it is important that businesses know that it is also beneficial to them. Some employers already have lots of flexible working opportunities, and they do that not only for the right reasons, but because it is good for them, as it is good for employees, for productivity and for morale.
I want to raise several points about the Bill. First, it introduces a requirement for employers to consult with the employee before rejecting their flexible working request, which facilitates a more open and constructive dialogue between employers and employees. That is important, because to have that conversation in the first place enables action to be taken, but if the request cannot be achieved, the Bill would ensure there is an understanding of why, which ultimately may enable a future request. That is important because it opens employers’ eyes to the importance of flexible working to the employee.
Slava Ukraini. I pay tribute to all those in Ukraine at the moment, and to those with family here in the UK and around the world who are thinking of their loved ones and those who were lost.
I will finish my speech shortly. I just want to make a few comments about why this Bill is so important. Flexible working is not something people request for the sake of it. They often ask for a reason, be it a family reason or about being able to do their jobs better. It might be about enabling them to work at different hours from some of their colleagues but still be productive. I pay tribute to the hon. Member for Bolton South East for bringing this Bill through. It will be transformative for this country, because it makes us competitive; it makes businesses competitive; it makes employees feel wanted and makes sure they are supported; it brings fairness into the workplace; and it makes sure that workers’ rights are at the heart of what we do, just as we have seen with many of the Bills that have been going through, especially the private Members’ Bills. I wholly support this Bill. I hope the House of Lords will make sure it passes quickly and can come into force as soon as possible.
It is a pleasure to follow that excellent speech from my hon. Friend the Member for Watford (Dean Russell). I rise today in support of this Bill because I believe it is right that we, in this place, should lead the modernisation of working regulations in our country. That is what the Bill intends to achieve and I welcome it, so I wish to add my congratulations to the hon. Member for Bolton South East (Yasmin Qureshi) on bringing it to the House.
Of course, as a Conservative, 1 believe that free markets and competition in the supply of services are vital in order to ensure the best market prices for consumers. Indeed, our 2019 manifesto committed to
“encourage flexible working and consult on making it the default, unless employers have good reasons not to.”
Conversely, in a healthy economy, free of monopolies, employers must compete for employees by offering better salaries and better terms of employment than their competitors. Indeed, according to the Chartered Institute of Personnel and Development, as of May 2022 competition for talent in our country remains fierce, with up to 45% of employers reporting having vacancies that are “hard to fill”. The report states that organisations are already exploring the prospect of offering flexible working to attract talent. None the less, there is a strong argument to be made in favour of the provisions in this Bill; its new provisions would further cement the progress we have achieved in the past two decades.
It is worth mentioning that since 2014, thanks to Conservative Governments, all employees have the right to request flexible working arrangements after a sensible period of 26 weeks of continuous service. As my hon. Friend the Member for Watford pointed out, the Bill would add to that by requiring employers to engage with their employees before rejecting a request.
Another important change is the reduction in the time available to an employer to respond to a request. I think that these are reasonable measures. We should not forget that employers need time to consider and prepare to implement changes, especially to ensure that staff are available when needed. Likewise, employees need to be able to plan their life. Reducing from three to two months the time available to an employer to respond will ensure that requests are dealt with in an appropriate timeframe.
It is a pleasure to follow my hon. Friend the Member for Orpington (Gareth Bacon), who represents the constituency where I went to school. I congratulate the hon. Member for Bolton South East (Yasmin Qureshi) on introducing the Bill and on successfully getting it through Committee and back to the Floor of the House. May I also congratulate the hon. Member for Preston (Sir Mark Hendrick) on his Co-operatives, Mutuals and Friendly Societies Bill, which we passed a few moments ago? On a day on which we are showing solidarity with Ukraine, it is good that in the best traditions of this House we are working together to pass legislation that will make a difference to our constituents across the country.
I do not intend to go into too much detail on the Employment Relations (Flexible Working) Bill, because I would be repeating what other hon. Members have already said. It would introduce a requirement for employers to consult before rejecting a flexible working request; allow an employee to make a second statutory request within any 12-month period; reduce the decision period; and remove the requirement, which is currently a bit of a burden, for the employee to explain the effect that the change would have on the employer. Those are all sensible, proportionate changes. I am conscious of the need not to burden businesses unnecessarily, and I know that the Minister addressed in Committee the fact that there will be small administrative costs to business as a result, but I think that these proportionate changes reflect the reality of the modern workplace.
A lot of changes have come about as a result of covid. My hon. Friend the Member for Warrington South (Andy Carter), who is not here today—I am sure he is in his constituency—was right to note on Second Reading that a lot of us were able to work well during covid because we have laptops and we do a job in which we can use them. Even in this place, which can sometimes be a pretty inflexible workplace, we showed a great deal of flexibility.
Does my hon. Friend agree that amid fierce competition for labour, employers that can offer flexible working are more likely to hang on to existing staff and attract new staff?
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The Bill contains four measures. The first is to introduce a duty on employers to consult with their employees before rejecting their flexible working request. Put simply, the measure will prevent employers from defaulting to “no” without first engaging with the employee when responding to individual requests.
I am pleased that, alongside the Bill, the Government have stayed true to their commitment to me and made the right to request flexible working apply from day one of employment. I am therefore grateful to Government Ministers for the position that they have taken on the Bill. As a package, these measures will help to secure more flexible working where it meets the needs of individuals and business, and will encourage a more constructive dialogue about different ways of working. The changes will also speed up the administrative process and, ultimately, provide more employees with better access to a diverse range of working arrangements.
I thank the organisations that have been a great support in the last few months, including those that have written to me and met me. To name a few, they are: Working Families, the MS Society, the TUC, Pregnant Then Screwed and Zurich Insurance. I especially thank the team in the Department for Business, Energy and Industrial Strategy—the Department for Business and Trade, as we now call it—who have been tremendous in their support throughout the process. All three Ministers whom I have had the pleasure to deal with about the Bill have also been very supportive.
This is a policy area in which both the Labour party and the Conservative party have made commitments. We agree that more can and should be done to help people and businesses to find work arrangements that allow them to participate and prosper in the labour market. I hope, therefore, that hon. Members on both sides of the House will share my desire to ensure that the Bill succeeds.
Secondly, the Bill allows an employee to make two statutory requests in any 12-month period. That is important, because at the moment it is just one, and the problem is the stress on the individual. It is quite a moment when someone needs to go in and ask for time to be flexible within the workplace. For many, even asking makes them worry and fear that they will then be judged and that ask will be seen as negative. The Bill makes a level playing field by ensuring that both employee and employer are aware of why the flexible working request is important and what the benefits are, and ultimately what difference it will make to the employee.
Thirdly, the Bill reduces the decision period within which an employer is required to administer the statutory request from three months to two months, reducing undue delay for the employee, who is balancing multiple commitments. I have had a family member have to go into hospital, which all of a sudden throws everything out. It throws up the challenges of picking up one’s child from school and the worry about one’s family member—it picks up so many different issues that can affect someone within the workplace. It can affect what they are thinking about and where they can physically be at certain times. Making that request and knowing that one can get a response within two months rather than three makes a big difference. That could perhaps be even shorter, but I appreciate that for many employers, making a change within two months can be challenging in and of itself.
Fourthly, this important Bill removes the requirement that the employee must explain the statutory request, the effect the change would have on the employer and how that might be dealt with. That is crucial, because previously the employee had to explain to the employer how the request for time and flexible working practice would impact on the business. The challenge for employees is that they might not know the full context. They might not be able to make that argument. Someone working as a cleaner in a business might not know why the request has an impact on the wider business, but that does not mean the request is not still crucial or that it will have an impact on their ability to do their job.
Fifthly, it was pleasing to see in Committee that the amendment tabled on the entitlement to make flexible working applications from day one was accepted by the Government. That took a lot of time and effort to get right, because for some businesses the concern was that if they are doing it on day one, how can the person be judged on doing their job when they are not physically in work, and how can the impact of the request be judged? The amendment would enable any employee on day one to go in and say, “I’ve got a need to be flexible, but I can still offer something positive to the business and make sure that I am delivering.” This is about productivity and flexible working in the best possible way, but it is ultimately about ensuring fairness at the heart of workers’ rights and within businesses.
With the Employment (Allocation of Tips) Bill that I have been working on with my hon. Friend the Member for Ynys Môn (Virginia Crosbie), the key thing is workers’ rights, but it is also about fairness. In the workplace, we often go to work to make a life. We work to live or we live to work. Many of us in this place often live to work and we all love what we do 24/7, which is why we do what we do; it is about community and civic service. However, many people go to work to get a wage in order to go home and look after their family, and flexible working is a key part of that. When we are looking at this Bill, we have to make sure we are delivering on that part.
We must be clear about what the Bill does not seek to do. It would not compel employers to agree flexible working arrangements with their employees. That is important, because I think that mandating such an agreement would be a step too far; it would put employers in a very difficult position. However, by requiring employers to engage properly with their employees before rejecting an application, the Bill seeks to strike the right balance.
The new regulations could help employers and employees to find mutually beneficial arrangements. The impact assessment considers that
“flexible working can result in increased motivation and productivity from employees…reduced absenteeism, reduced vacancy costs”.
Those are evidently hypothetical and non-monetised benefits, but the cost to employers arising from the new regulation would be low: approximately £2 million annually. That makes the considerable potential benefits very attractive indeed.
I would like to draw attention to a contribution made on Second Reading. Unfortunately I was unable to attend the debate, but in preparation for my speech today, I read Hansard to find out what colleagues had said. Among the numerous contributions from colleagues on both sides of the House, I noted an intervention from my hon. Friend the Member for Warrington South (Andy Carter). He rightly pointed out that the Bill aims to help the vast majority of people who cannot use a laptop to work from home, as we can, and to make it easier to request varying times and adjustments, especially when someone’s job cannot be done from a desk at home.
If the Bill is passed, it will help those to whom access to flexible working arrangements will make the greatest difference. It will even prevent many people from abandoning the workforce altogether. That is why I will support the Bill today.
Many of our constituents do not have that flexibility. They have jobs that require them to be in the office or on the job at a particular time, but they also have complicated lives—they may be single parents or have caring responsibilities for their own parents or elderly relatives—and we really need to make life better for them. That is what the Bill will achieve, so again I congratulate the hon. Member for Bolton South East.