Overview
Flexible working is a tailored approach to work, accommodating employees’ needs through options such as flexible start and finish times or remote work. All employees, not just parents and carers, have the legal right to request flexible working. Termed a ‘statutory application’, a request can be made from day one of working (prior to 6th April 2024, a request could only be made after 26 weeks of working). The regulations differ in Northern Ireland.
Employers are obligated to handle flexible working requests in a ‘reasonable manner’. A reasonable assessment should include:
- Assessing the advantages and disadvantages of the application.
- Discussing possible alternatives to the request.
- Offering an appeal process.
An employer can refuse an application if they have a good business reason for doing so. If the employer does not handle the request in a reasonable manner or does not offer a good business reason for refusing the request, the employee can take them to an employment tribunal.
Further information can be found at ACAS – Flexible Working
Types of Flexible Working
Various flexible working arrangements include job sharing, working from home, part-time work, compressed hours, flexitime, annualised hours, staggered hours, and phased retirement. These options provide diverse solutions to cater to employees’ preferences and needs, offering flexibility in working arrangements.
Flexible working and payroll
Employee’s that change hours, shifts and rotas may experience changes in pay or pension eligibility.
It is important that the impact on their remuneration package is discussed from the outset. For instance, an employee that was previously using a salary sacrifice arrangement in return for increased holiday entitlement may no longer be able to do so, as it may cause a breach in National Minimum Wage legislation. In addition to this, a reduction in working hours, and thus pay, may result in reduced employee and employer pension contributions.
A further complication may arise in regard to statutory payments. Eligibility for Statutory Sick Pay and Parental Leave payments are based on the employee earning at or above the Lower Earnings Limit (this is £123 per week in 24/25). If a new flexible working arrangement reduces an employees pay below this level, they may not qualify for statutory payments.
It is important that any changes made to employees working patterns are discussed with your Payroll Manager.