‘Strike right balance’ on flexible working, business groups urge Labour

Ministers must allow firms to “strike the right balance” on flexible working, business lobby groups have urged.

It comes after business secretary Jonathan Reynolds told The Times alternative work schedules “contribute to productivity” and could be “significant” in tackling regional inequality issues, amid debate over the government’s proposed plans for workers’ rights reforms.

He said, however, that companies have “genuinely nothing to worry about” regarding Labour’s plans for workers to have a right to disconnect and not be contacted out of hours.

But business lobby groups told City A.M. it is vital for government to be “getting the balance” of legislation right, including on the issue of flexible working.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce (BCC), observed that “many firms” were already embracing the shift due to “good business sense”.

But she stressed: “One size doesn’t fit the needs of all businesses or all individuals. For some employers, offering flexible working is not always practical across all roles.

“In our ongoing talks with the government, we’re pleased to see ministers recognise the importance of engagement and getting the balance of this legislation right.”

While Muniya Barua, deputy chief executive at BusinessLDN, highlighted the importance of working flexibly for employees who are parenting or caring outside of work.

“But it’s also important other groups, such as new staff, don’t miss out on hands-on training and learning they can only get by learning from colleagues in the workplace,” she added.

“That’s why it’s critical that flexible working policies are designed in close consultation to strike the right balance for both employers and employees.”

And Alex Hall-Chen, principal employment policy adviser at the Institute of Directors (IoD), said flexibility helped firms “attract and retain talented staff” as well as supporting “groups more likely to fall out of the workforce, such as parents and disabled people, to thrive”.

But she insisted: “Different businesses have different needs, and companies will work closely with their employees to find the best solutions.”

Chartered Institute of Personnel and Development (CIPD) policy manager Claire McCartney also noted flexitime or hybrid working can “increase performance and business agility”. 

However, she added: “It’s down to individual businesses to decide what works best for them, as there is no one-size fits all approach.”