Employment Relations (Flexible Working) Bill Debate
Full Debate: Read Full DebateYasmin Qureshi
Main Page: Yasmin Qureshi (Labour - Bolton South and Walkden)Department Debates - View all Yasmin Qureshi's debates with the Department for Business, Energy and Industrial Strategy
(1 year, 10 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
It is a pleasure to introduce the Bill, having come ninth in the ballot. I must begin by thanking my hon. Friend the Member for Easington (Grahame Morris), who is not currently in the Chamber. For some reason I saw him about three times during the day on which the ballots were being carried out, and on each occasion he asked me, “Have you put your name down for the ballot?” I have been a Member of Parliament for 12 years. In every one of those years I used to put my name down, and of course I never came anywhere near the possibility of getting a Bill through, so I really must thank my hon. Friend for all his encouragement.
I also want to thank the Ministers with whom I have been dealing over the last few months—the Minister of State, Department for Levelling Up, Housing and Communities, the hon. Member for Sutton and Cheam (Paul Scully), who is no longer present, and the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Dean Russell), who represents my old home town—and to welcome the new Minister, hon. Member for Thirsk and Malton (Kevin Hollinrake), to his post. I also want to place on record my thanks to the ministerial team at the Department for Business, Energy and Industrial Strategy for all their help and support. I want to mention two names in particular, Matthew Wootton and Tony Mulcahy.
I know that some colleagues today may have a personal interest in flexible working, and I hope that they will contribute to the debate. This is an important issue, because flexibility in the workplace is no longer just a perk or a “nice to have”. For many it is a lifeline, because it offers a much-needed pathway into the labour market and allows those with caring responsibilities to save on childcare costs by “flexing” their working patterns.
Let me start by talking about the importance of flexible working from the employee’s perspective. Many Members of Parliament, including me, were fortunate enough to be able to work from home during the pandemic, and we may appreciate the benefits of flexible working more than most. When we plugged ourselves into our online meetings each day, it meant that we could carry on, and fulfil the demands of our job, by being virtually connected to this Chamber; to our constituents in virtual advice surgeries, or to meetings with charities and other organisations. Even before the pandemic, however, many of us enjoyed a certain degree of flexibility in how we managed our diaries. Constituents have told me that working from home made them feel much more connected to their children. Many mothers—and fathers—were relieved not to have to be late collecting their children from school each day. Working from home also made life easier for carers who, like me, were looking after a chronically unwell family member.
During the pandemic millions of people benefited from flexible working, and I think we all recognise that this is a good position to be in. However, in many jobs there are still invisible restrictions that hold people back—for instance, the need to live in high-cost accommodation close to the centre of cities, or to maintain working arrangements that are hard to combine with family or other responsibilities. Recent research conducted by the charity Working Families shows that three in 10 UK parents are working in jobs that are below their skill levels because they cannot find the flexibility they need elsewhere. That is a massive waste of talent.
My hon. Friend is making an important speech on an issue that I am passionate about. She will know that we as a country are in the midst of a mental health crisis that, in addition to destroying lives, is costing the UK economy about £100 billion a year. The evidence, which I am sure she has looked at, shows that flexible working brings mental health benefits as well as wellbeing to employees. Can she elaborate on whether she thinks the Bill contains benefits not only for public health but for the economic development of our country?
I thank my hon. Friend for her intervention. I acknowledge the sheer amount of work that she has been doing on the issue for many years, and I thank her for that. I will come on to the economic benefit of flexible working and how much we lose out by not doing so. Mental health is an issue that is becoming more a feature of our daily lives and in society.
It is important to remember that flexibility is far more than hybrid working. It covers job shares, reduced or compressed hours, flexitime, and even phased retirement. Offering flexibility to balance work and home life can be key to ensuring progression in the labour market and to opening up employment and promotion opportunities to everyone, regardless of their gender, age, disability or location.
In the last few months, I have met a number of charities and organisations that represent thousands of members who are affected by flexible working—or rather, the lack of it. For example, the Multiple Sclerosis Society shared numerous cases of how flexible working has benefited people with MS. I learned about Trishna, who lives with MS and has found that having good, flexible working policies from her employer means that she is able to stay in work longer. Flexible working means that she can work from home with flexible hours and can manage her workload around her fatigue. She can start work early and finish early when she needs to, and can bank hours for days when she does not have the energy or strength to work.
Although more people have been able to work flexibly since the start of the pandemic, some have not been able to work in that way despite wanting to, even though there is often no good reason for the employer not to let them. That has serious consequences for women and families in particular, and for those with childcare commitments.
I recently met an organisation called Pregnant Then Screwed, which shared a large volume of shocking cases where women had been affected by the lack of flexible working opportunities. In one case, a mother shared:
“I had to leave my job after maternity…because my job didn’t support flexible working and I was unable to find another suitable part-time role in the company.”
She says that, to her detriment, it meant that she had to leave her career and it affected her mental health. She
“became a stay-at-home mum, putting huge pressure on my husband to pay for our household on one income”.
That is really unfortunate, because statistics show that if women can access flexible working, they are twice as likely to stay in that job and continue with their careers while having children and a family life.
Men’s ability to access flexible working is just as important. The statistics show that women are twice as likely to excel in their career if their husband is helping with the childcare. Younger families, single parents and lower earners were hardest hit financially during the pandemic and again now we have the cost of living crisis. In a recent survey, the charity Working Families found that 60% of those who took part said that it is financially harder to raise a family now than it was three years ago. That makes it more urgent than ever for people to have access to flexible working.
As my hon. Friend says, this issue is close to my heart and I am glad she has cited the work of Pregnant Then Screwed, which has done valuable research on this topic. She will know that one in three requests for flexible working is turned down. Will she elaborate on the fact that we need to change the legislation, but also the culture of the workplace so that employees, especially mothers who are trying to look after their children and go to work at the same time, feel they can ask their employers for flexible working?
My hon. Friend anticipates something I will touch on in my speech relating to the financial side. In fact, I was just about to come on to the point that flexible working is good not just for employees, but for employers and the wider economy. By removing invisible restrictions, flexible working fosters a more diverse workspace. The evidence shows that that leads to improved financial returns for businesses. McKinsey points out that by fully utilising women in the UK economy, we would be adding £150 billion to our economy by 2030. Therefore, widening flexible working is very important for employers, too. It has also been shown that workers who have more flexibility are more motivated at work and are more likely to stay with a particular employer.
The hon. Lady is making a very powerful and good speech, and I am broadly supportive of the measures in her Bill. She talks about the engagement she has undertaken with charities and a number of organisations representing employees. Has she engaged with the Federation of Small Businesses and other employer organisations? I am particularly concerned about the impact the Bill might have on small businesses.
Yes, and I have discussed the matter with Zurich Insurance Group, which is very keen on flexible working. I think that when I explain the Bill in detail, the hon. Gentleman will find that it will not place any undue financial consequences on small businesses if an employer is not able to offer flexible working. The idea is to think a bit more out of the box and more creatively. I do not think that small businesses are against flexible working either. When I talk about businesses and employers, I am including everybody in that. I am saying that it is a good thing for employers, whether they run a small business or a large business. Recent research from the charity Working Families found that half of all UK parents would leave their current job if they found one with more flexibility, so it would help an employer.
I have personal experience as an employer, and, even before the pandemic, I was a strong advocate for the benefits of flexible working. In my office alone I have accommodated staff with childcare needs, those who wished to study part-time, two employees who were job sharing and an employee who worked compressed hours so that he could fulfil his council duties. I have to say that it worked very well in my office.
Taking a broader perspective, recent figures show that there are almost 9 million economically inactive working-age adults in the UK, with 1.75 million citing caring for family as their reason for not working. Again, that is a huge reservoir of untapped talent and productivity that greater flexible working opportunities could help us tap into.
The Bill will introduce changes to the existing right to request flexible working. For those who are not familiar with the background to the legislation, the right was first 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 been amended several times, most recently as part of the Children and Families Act 2014. The right currently allows all employees who have 26 weeks of continuous service with their employer to make one statutory application per year to change their working hours, working patterns or work location. When the employee submits such a request, they are asked to explain what effect, if any, the change would have on the employer and how that might be dealt with. Employers have to consider all eligible requests and can refuse them only on one of the eight business grounds set out in the legislation. They have three months in which to respond to the employee’s request.
The Bill, which I hope will pass through Parliament, would, along with the use of secondary legislation, give an employee a right to ask for flexible working hours from day one. An employer could decline that, but they would need a credible business reason to do so. While the day one right is not explicitly stated in the Bill, as I understand it, secondary legislation would be introduced to say that it is a day one right. I hope that the Minister will confirm that in his response.
The Bill is focused on setting the right conditions for employees and employers to have an open-minded conversation about what flexible working arrangements might be possible in any given context. It hopes to simplify and normalise the process of making and responding to flexible working requests, bringing benefits to employees and employers alike.
The Bill has four measures. The first is a duty on the employer to consult the employee before rejecting a flexible working request. I am aware that organisations such as the TUC and Working Families, who continue to lobby for stronger flexible working rights, have been making the case that, at present, it is too easy for an employer to refuse flexible working requests. Hopefully, this measure would prevent employers from just saying no without engaging with the employee as to why. We hope that that will bring on a culture shift. Of course, it requires both sides to discuss the matter properly.
Secondly, under the Bill, the employee could apply for flexible working hours twice in 12 months. That is understandable, because sometimes situations change unexpectedly. An employee could become a carer or diagnosed with a long-term health condition meaning that their work arrangements were no longer sustainable, so being able to request a change twice in a year would assist with that. Of course, in the end, all of these things benefit the employee and the employer, because otherwise good employees may well leave.
Thirdly, under the Bill, instead of a three-month period, the employer would have two months in which to respond. That would encourage responsiveness from the employer and ensure that matters are dealt with as soon as possible. With modern technology and the things that are happening, it is right that the Bill should update the current situation.
One of the final measures in the Bill is to remove the requirement for the employee to explain the effects that the changes they applied for would have on the employer and how they might be dealt with. That is quite hard for some employees. Some people are good at writing an articulate case and making a great submission, but many employees may not necessarily have the linguistic skills to make a beautiful case. New employees in particular may not have the confidence or experience to do so. It would therefore be helpful to remove that burden from the employee.
I hope this Bill will encourage more constructive dialogue about flexible working and will make employer and employee focus on finding ways that are acceptable to both. The Bill does not of course resolve all the issues concerning better flexible working, but it is a step in the right direction.
I thank bodies including Working Families, the TUC, Pregnant Then Screwed, the MS Society and other campaigning organisations, and Zurich Insurance Group, a big insurance company which continues to lead the way on flexible working. I also thank my hon. Friend the Member for Hampstead and Kilburn for her campaign over many years and her intervention. I again thank the Minister the hon. Member for Thirsk and Malton for his support. The Conservative and Labour parties can work together on this and agree that it is good for our nation. I hope all hon. Members in all parts of the House share my desire to ensure that the Bill succeeds; as we know, there are certain fragilities that accompany the private Member’s Bill process and I would like to navigate past them with the support of Members across the House.
As ever, my hon. Friend is absolutely correct. We have to be mindful of that. Again, the House has to understand the pressures on businesses. This is an extremely difficult time for businesses across the country. The concept of flexible working takes second place to being able to pay wages and bills, and making sure that people are employed.
Can I alleviate the hon. Gentleman’s concern? Under the Bill, if the employer says, “No, I cannot provide flexible working,” that will be the end of it. There is no ability on the part of the employee to take the employer to an industrial tribunal or any such thing. If the employer says no, that is the end of the matter, so I do not think that small businesses or any other employer have to worry about the consequences of the Bill.
I thank the hon. Lady for her intervention. As I said at the start of my speech, that is the very reason why I support the Bill. It does not place burdensome legal responsibilities on employers, but, while I am not criticising the Bill or the good intentions that underpin it, it is right that we discuss the realities of small businesses and the pressures they are under.
I welcome the Bill. It is great to be able to support a fellow Greater Manchester/Lancashire MP in trying to change employment practice. Flexible working is a great concept, because we want to ensure that people are not locked out of the labour market. As the hon. Lady has rightly said, many people with childcare responsibilities, and others, need flexible working to help them into the market and to ensure that they have an equal opportunity to thrive and succeed. There are, however, other realities that we must always keep under consideration, and we must always celebrate the self-employed.
With the leave of the House, I would like to thank all hon. Members for their contributions: the hon. Members for North Devon (Selaine Saxby), for Darlington (Peter Gibson), for Heywood and Middleton (Chris Clarkson), for Hastings and Rye (Sally-Ann Hart), for Bury North (James Daly), for Burnley (Antony Higginbotham), for Southend West (Anna Firth) and for Devizes (Danny Kruger), and, obviously, the shadow Minister, my hon. Friend the Member for Putney (Fleur Anderson), and the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Thirsk and Malton (Kevin Hollinrake).
I think we all agreed that this Bill is a good idea. It will benefit employers and employees. We are mindful of the fact that some jobs can only be done in person and so there may not be the opportunity for flexibility, but we also know that there are many, many jobs where there can be such an opportunity. This is just a question of drawing the attention of employers and employees to the fact that there are other ways of working, and the pandemic has really brought that home.
I seek clarification of one thing the Minister said about the day one right, to which I referred. I do not know whether I misheard, but I believe he said something about consultation on this. I may have misunderstood the discussion in question, but my understanding was that the reason the day one right is not in the Bill is to do with the statutory parliamentary draftsman saying that this is going to be introduced by means of a statutory instrument, secondary legislation, once the Bill is passed. I wanted that to be reconfirmed, because one of the most exciting things about the Bill is a day one right. I hope the Minister will be able to give confirmation on that. Finally, I wish to thank everyone again, particularly the Government Whip, the hon. Member for Castle Point (Rebecca Harris), for being absolutely fantastic. I thank her for all her help in guiding and advising me through the passage of this Bill, and I commend it to the House.
Question put and agreed to.
Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).