Government U-turn on flexible working requests for SMEs

News Article - 01 April 2011
Category: Regulatory

The Government has made a U-turn on its stance over flexible working patterns for employees of small and medium-sized enterprises.

Business Secretary, Vince Cable had previously announced the Government's plans to extend the right to request flexible working to all employees as part of a strategy to improve the wellbeing of the nation.

However, Mr Cable revealed last week that businesses with fewer than 250 staffcouldrefuse employee requests for flexible hours or part-time work, with one eye on accelerating the growth of the economy and reducing regulation of entrepreneurs in the process.

However, this balancing act has not gone down too well with many HR experts. James Wilders, partner in the employment practice at law firm, Dickinson Dees said: "Employers in small businesses will still have to consider flexible working requests from employees who need to care for children, disabled people or those who are over 65, because otherwise they are open to discrimination claims - so this is not a blanket ban.

"But this does mean small employers that do not like flexible working could lose staff, who would prefer to move to bigger organisations. A presumption still exists that flexible working can have a negative impact on business, but without it employees could become less loyal or unmotivated."

Even smaller firms with under 10 staff are unlikely to be subject to these new regulations for at least three years with the aim of lifting the regulatory burden on Whitehall. These so-called 'micro businesses' are, at present, burdened with red tape that is seemingly designed for larger organisations.

John Walker, chairman of the Federation of Small Businesses (FSB), said: "Regulation is one of the most burdensome and complex issues for small businesses, so it is a real victory for the FSB and small firms across the country that the government has finally listened."

Article keywords: Flexible working, small business, medium-sized enterprises, SME, Business Secretary, Vince Cable, HR, Human Resources, James Wilders, Dickinson Dees, John Walker, Federation of Small Businesses, FSB

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