Employment Relations (Flexible Working) Bill

Earl of Minto Excerpts

2nd reading
Friday 19th May 2023 Lords Chamber

[The Minister of State, Department for Business and Trade (The Earl of Minto) (Con)]

My Lords, I thank the noble Baroness, Lady Taylor, for bringing this important Bill forward for debate today. It is an honour to be here to confirm the Government’s ongoing support for the Bill, and I thank all noble Lords who have spoken on this important matter.

The ability to vary the time, hours and place of work is an important element of the flexible labour market in Great Britain. Having access to flexible working arrangements enables individuals to participate in the labour market in a way that suits their circumstances. I see this in how flexible working plays a part in a host of cross-government strategies; whether it relates to disability, childcare, health or retirement, we know how important flexible working can be in helping people to stay in work doing jobs that they enjoy. Many of these 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 not only individuals but employers.

For employers, supporting flexible working could ensure the retention of an experienced worker, and all the skills and experience that they contribute, or create a more diverse senior leadership team, which studies have shown leads to improved financial returns. Furthermore, one of the key challenges for businesses today is finding good people to hire.

In this context, promoting and implementing flexible working can also make the workplace more attractive to potential applicants. This is supported by research conducted by the Behavioural Insights Team, showing that offering flexible working can, as has already been said, attract up to 30% more applicants to job vacancies.

There are also more fundamental structural issues to consider. More than 8 million people in the UK work part-time, representing a quarter of the working population. We need to make sure that the labour market continues to accommodate a diverse range of working patterns to ensure that everyone can participate and that businesses have the people they need. That is why the Government are pleased to support this Private Member’s Bill, which will help to facilitate better access to all forms of flexible working, whether that relates to when, where or how people work.

As set out by the noble Baroness, Lady Taylor, the successful passage of this Bill will introduce changes to the existing right to flexible working. This right was introduced in 2003 for employed parents and carers of children under the age of six and disabled children under the age of 18. The legislation has since been amended several times, most recently in 2014 as part of the Children and Families Act. Currently, all employees with 26 weeks’ continuous service can formally apply, once in any 12-month period, for a contractual change to the hours, timing or location of work.

In September 2021 the Government published a review of the legislation, which found that in the vast majority of cases—83%—where 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. In the same month, the Government launched a consultation that considered proposals in each of these areas. We published our response to that consultation at the end of last year. I am pleased to say that the measures in the Bill reflect what we set out in our response.

The new consultation requirement will mean that employees and employers are encouraged to have a broader conversation about what flexible working arrangements may be appropriate before a decision is reached, avoiding the scenario in which an employer rejects a specific request out of hand. Allowing employees to make two statutory requests every 12 months updates the legislation, so that the right-to-request entitlement operates more flexibly and can be used more frequently if people’s circumstances change. Reducing the timeframe within which employers must respond to requests, from three to two months, will simply speed up the whole process. Removing the requirement for the employee to set out the impact of the requested change removes red tape from the process and levels the playing field between employees who have been with the organisation for a shorter or longer period, as well as between those who are more or less capable of presenting a case for their application.

I will take a moment to highlight the other measure that was set out in the consultation response and will be implemented alongside the Bill to complete the package. We will remove the 26-week qualifying period and make the right to request flexible working available to all employees from the first day of their employment. This will not only encourage early conversations about the availability of flexible working but bring an estimated additional 2.2 million people into the scope of the legislation.

These changes represent a timely, sensible and proportionate update to the right to request flexible working, and reflect what many employers already do. The changes will particularly support those who need to balance their work and personal lives, and who may find it harder to participate in the labour market. From older workers to new parents to those with disabilities—the point about MS is extremely well made—or long-term health conditions, the Bill will be an important step in supporting their ability to remain and progress in work.

It is important to acknowledge that there is no one-size-fits-all approach to work arrangements and there will be times when a requested pattern is unworkable. That is why the legislation leaves space for employees and employers to work out the right arrangements for their particular circumstances, and for employers to continue to decline requests for one of the specified business reasons.

I am pleased to reassure the House that the Bill contains only a single provision concerning delegated powers: a standard power for the Secretary of State to bring the provisions of the Bill into force by commencement regulations. That approach seems to have been accepted by the Delegated Powers and Regulatory Reform Committee, which in its report published on 2 March 2023 stated simply:

“There is nothing in this private member’s Bill which we would wish to draw to the attention of the House”.


I hope that is ample reassurance for noble Lords.

Before going into specific points, I say that I hope that my speech has addressed most of the points raised. On the wider question raised by the noble Lords, Lord Davies of Brixton and Lord Browne of Ladyton, it is true that the 2019 Queen’s Speech said that there would be an employment Bill. We then went into Covid, and the Government are taking forward many of their manifesto commitments on employment law by supporting this and other Private Members’ Bills.

The noble Lord, Lord Davies of Brixton, also raised the question of what determines consultation—a very difficult thing to put your finger on, I imagine. The issue of consultation will be dealt with in guidance; we want to encourage positive conversation about what flexible working may be possible which meets the needs of both parties. But we do not want that to be a burdensome bureaucratic process on whether the consultation requirement will be enforceable.

The question of advertising is an interesting one. There is a downside to advertising, because it gives employers the opportunity to say no from the outset. We consulted on advertising in 2019. Clearly there is a strong business case for employers to do this; to some extent, why would they not? The trials with Zurich have proved that 30% more applications are received. But the view is that rather than pursuing this through legislation, we will take a voluntary approach, as set out in the business case.

I agree with almost everything that my noble friend Lord Holmes said. On the question of unpaid internships, I never did not pay an intern. It is incredibly important to make people realise early on in their working lives that if they give the time, they get properly rewarded. His point about the challenges that AI is going to present us was extremely well made. I will turn briefly to the comments of the noble Lord, Lord Browne, and I think he is absolutely right; what we are doing is turning a cultural shift into law. I think that is very good. The point about higher versus lower earners is another well-made point, and I hope that the consultation process will address that. To the noble Lord, Lord Palmer of Childs Hill, I say that I also remember the water cooler. It is very important to have a little cultural place, where people can meet and chat freely, to drive the culture of a business and the ethics in any organisation.

Supporting the Bill is in line with the Government’s ongoing commitment to build a strong and flexible labour market that supports participation and economic growth. I observed a welcome degree of cross-party co-operation and support in the other place, and I think it is a testament to the strength of our system that we can work across parties, putting aside our rivalries to deliver change which will make a real and positive impact on people’s lives. With this in mind, I look forward to continuing to work with the noble Baroness, Lady Taylor, as this Bill progresses through the House.

Employment Relations (Flexible Working) Bill

Earl of Minto Excerpts

3rd reading
Friday 14th July 2023 Lords Chamber

[Baroness Taylor of Bolton (Lab)]

My Lords, I thank all those who have been involved in the progress of this Bill and in getting us to this stage. Most of all, I thank my honourable friend the Member for Bolton South East, Yasmin Qureshi. At Second Reading, one Member of this House described the Bill as being put forward by the “Bolton mafia”. We not only plead guilty but are very flattered by that description—we will wear it well. I also thank Ministers in the department, who have been extremely helpful on the progress of this Bill in both Houses, and the civil servants behind them, who have prepared assiduously detailed briefings. We are all very grateful for the help that we have had.

This is a very modest Bill—most Private Members’ Bills that succeed must have a certain degree of modesty—but that does not mean it is insignificant. It will make significant changes that will be of real benefit to quite a few people. We spoke at Second Reading of the changes that have taken place in work patterns. This Bill allows all employees to have more rights in respect of their need for flexible working. Flexible working has increased a lot in recent years, but just yesterday the British Chambers of Commerce pointed out in its press release that there are significant disparities in who can get it and which sectors have been responsive so far. The BCC and trade unions have welcomed this Bill, and many pressure groups that have followed the progress of this issue have made positive contributions.

The Bill will help make flexible working more available to more people and allow people in a broader range of circumstances to be able to contribute fully to our economy; it must benefit everyone. It is a small but significant measure, and I am very pleased and grateful for all the support the House has given to its passage.

[The Minister of State, Department for Business and Trade (The Earl of Minto) (Con)]

My Lords, I thank the noble Baroness, Lady Taylor, for bringing the Employment Relations (Flexible Working) Bill through the House. The Government have been pleased to support the Bill throughout all its stages, in line with our 2019 manifesto, which committed to promote flexible working. I am pleased to continue that support today at Third Reading and am very grateful for the cross-party support that the Bill has received.

The successful passage of this Bill will introduce changes to the existing right to request flexible working, which will be made alongside the Government’s commitment to make the right to request flexible working available from the first day of employment. The changes represent a timely, sensible and proportionate update to the right to request flexible working and reflect what many employers already do. They will particularly support those who need to balance their work and personal lives and may as a result find it harder to participate in the labour market. From older workers to new parents and those with disabilities or long-term health conditions, this Bill will be an important step in supporting their ability to remain and progress in work.

I am very pleased to support the Employment Relations (Flexible Working) Bill. It is a meaningful step in the right direction to help employers and employees agree work arrangements that fit with life. I thank the noble Baroness, Lady Taylor, for her sponsorship of the Bill as it has moved through this House, and the honourable Member Yasmin Qureshi and my honourable friend Kevin Hollinrake for their sponsorship in the other place and hard work in putting this Bill forward.

[Baroness Blake of Leeds (Lab)]

My Lords, I briefly add my thanks for the smooth passage of this Bill. I pay tribute to the Bolton mafia and, in particular, my noble friend Lady Taylor of Bolton. I also thank the Minister for his support going forward.

We were all struck by the moving testimonies at Second Reading; I think it was the noble Lord, Lord Holmes, who said, “Flexible working—why wouldn’t you?” That absolutely summed it up. A cultural shift is happening. As we know, many companies are already on board and getting great benefit from a more flexible approach to their workforce.

I cannot let this moment pass without referencing our culture; I note that at Second Reading there were 10 noble Baronesses on the Front Bench.

I say an enormous thank you to everyone who has assisted with this in both Houses and look forward to the next steps that will follow once the Bill is enacted.