Employment Relations (Flexible Working) Bill
(Limited Text - Ministerial Extracts only)
Read Full debate
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)
Thank you, Madam Deputy Speaker. I associate myself with the comments made about those 40 years of service by our colleague, the right hon. and learned Member for Camberwell and Peckham (Ms Harman). I would also like to pay tribute to my predecessors, not least my hon. Friend the Member for Sutton and Cheam (Paul Scully) and my hon. Friend the Member for Watford (Dean Russell), who did great work in a disappointingly short time in office—perhaps not too disappointing for me, but he was doing a wonderful job.
I thank the hon. Member for Bolton South East (Yasmin Qureshi) for bringing forward this very important Bill. I was struck by her words when she described it and similar legislation as a lifeline to many people, not least carers, parents and those living with illness or disability. I really appreciate what she has done with the Bill. The key point in her speech was, I think, clarification on the day one right. The shadow Minister, the hon. Member for Putney (Fleur Anderson), also raised that point in her speech. It is a key part of this policy package and we will respond fully when we bring forward the response to the consultation shortly.
I thank all hon. Members who spoke on this subject today. We heard some fantastic contributions. My hon. Friend the Member for North Devon (Selaine Saxby) talked about flexible working benefiting people in rural communities, which I am clearly very keen to support. She also pointed out that this is a very competitive jobs market. In fact, it is the most competitive jobs market since 1974, in that we have record low unemployment levels not seen since 1974, which I think we all welcome.
My hon. Friend the Member for Darlington (Peter Gibson) talked about how he personally facilitated flexible working for his employees before becoming a Member of Parliament. My hon. Friend the Member for Heywood and Middleton (Chris Clarkson) talked about flexible working helping parents to manage childcare and decreasing the gender pay gap.
My hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) talked about employees having a better work-life balance being beneficial to employers. I was struck that many contributions did not just talk about the benefits of the Bill for employees, but that it is also critical for employers.
My hon. Friend the Member for Bury North (James Daly) talked about his own experiences and about those who run small businesses that are particularly affected by this kind of legislation and that they must always be in our thoughts. My hon. Friend the Member for Warrington South (Andy Carter), in his interventions, talked about concerns around productivity and the impact on town centres, as did my hon. Friend the Member for Burnley (Antony Higginbotham), who raised the idea of a trial period—a very interesting point. That can be done under existing legislation by granting the right to flexible working for a certain period of time and then reviewing it subsequently, but it is a very good point. The key thing is that at any point, as the hon. Member for Bolton South East pointed out, any business can reject a request if it gives reasons for doing so, which is one thing specified in the legislation. A request can be rejected on the basis of cost to the business, quality or, indeed, the performance of the employee.
My hon. Friend the Member for Southend West (Anna Firth) talked about how the Bill could help people with conditions such as ME, by bringing more people into full-time work, and my hon. Friend the Member for Devizes (Danny Kruger) talked about how the pandemic has increased the ability of our communities to operate more effectively and about the importance of employers and employees having a conversation about whether changes to employee working patterns are appropriate. That is another key part of the Bill.
The Government are committed to ensuring that the UK is the best place in the world to work and grow a business. To do that, we need a strong and flexible labour market that supports participation and economic growth. The Bill formalises good working practices, so I am pleased to confirm that the Government will support it.
As has been discussed, flexible working has a key role to play in supporting the labour market participation of certain groups relating to disability, childcare, health and retirement. Many strategies seek to encourage workplace conversations. We know that with a good discussion and a bit of flexibility, working patterns can be adapted to benefit both parties.
As many Members outlined, it is hugely important that we consult employer groups and employee groups on legislation such as this. We did that through the flexible working taskforce, which involved a range of stakeholders from employee groups and employer groups, such as the Federation of Small Businesses.
The ability to vary the time, hours and place of work is key to the effective functioning of the flexible labour market in the UK. Research suggests that in the absence of suitable working hours or locations, groups of people are either not employed, have retired early, or are working below their potential. That is clearly bad for them and for the wider UK economy.
The Office for National Statistics recently published findings showing that older workers who work flexibly are more likely to be planning to retire later. Another of its studies looked specifically at older workers who have left work since the start of the pandemic but would consider returning to paid work in future. It found flexible working to be the most important aspect of choosing a new job among that group.
Once employed, those with a flexible working arrangement have been found to be more engaged and more likely to increase discretionary effort. A 2017 report published by HSBC showed that nine in 10 employees consider flexible working hours to be a key motivator to their productivity at work.
The right to request flexible working acknowledges that there is no one-size-fits-all approach to work arrangements. It is designed to help employees and employers to find arrangements that work for both sides. In September last year, the Government published a review of the legislation that found that in the vast majority of cases—83% of them—in which a statutory request is made, it is accepted.
The review found the framework to be functioning adequately but highlighted some relatively minor areas for improvement, which the Bill seeks to address. The areas for improvement were the 26-week qualifying period before a new employee can make a request; how employers consider and refuse flexible working requests; and the administrative process that underpins the framework. One year on, the Government are pleased to see that this Bill reflects what we consulted on. Although, as I said earlier, I cannot go into the detail of our consultation response, we will bring it forward shortly.
The Bill will make important changes to the right to request flexible working, setting the right conditions for employees and employers to realise the benefits of flexible working. The Government are committed to building a strong and flexible labour market that supports participation and economic growth. It is great to see support for these measures across the political spectrum in the House, as has been evident from today’s debate. The Government look forward to continuing to work closely with the hon. Member for Bolton South East to support the passage of these measures.