UK Companies Report Spiralling Costs of Implementing New Flexible Working Legislation

Added : ( Fri Aug 15 2003 )

Companies that have adopted a reactive stance to new flexible working legislation are experiencing significant implementation costs as a result, according to a new survey released today. The law, which came into effect on 6th April 2003, gives parents with young or disabled children the statutory right to apply for flexible working patterns, and employers a legal obligation to consider these requests seriously.

The survey, commissioned by workplace flexibility specialists John Blackwell Associates Ltd (JBA), found that in the absence of auditable metrics and measures, over 70% of the companies surveyed dealt with employee requests on a case-by-case basis, and cited spiralling Human Resources management time as a direct consequence. The survey also revealed that one third of the companies experienced unsustainable costs from making requisite changes to working procedures, and an overwhelming amount of respondents (78%) anticipated significant forthcoming expenditures, such as ICT, to support flexible workplace practices.

“Many employers are alarmed by the recent changes in Employment Law; they are unsure how to integrate workplace flexibility into existing procedures, they fear the related costs, and are concerned that unpopular outcomes will lead to tribunal claims,” said John Blackwell, CEO, JBA. “The main problem is that many organisations are letting this legislation happen to them; they have no clear measures or policies on workplace flexibility and so, in the event of an employee request, find themselves under considerable pressure to make decisions on fundamental changes to their work practices.”



“In this unstructured, haphazard workplace, is it not surprising that Employment Law practitioners are the fastest growing UK legal sector – up a staggering 53% in three years. The key to workplace flexibility is to be proactive about the new legislation. Employers can grasp the nettle and use these new legal responsibilities as a catalyst to creating a fitter, more agile, productive, and responsive working environment.”

“Many organisations are focussed on the challenges that workplace flexibility represents, but it also provides a spectrum of opportunities and, when implemented correctly, can have a huge positive impact on a business. For example, it can offer clear economies in terms of the physical office space required per employee plus organisations can save on attracting, recruiting, and retaining budgets by adopting a considered approach to the accommodation of employees’ diverse needs.”

The changes in the Employment Act – which also include changes to maternity rights, and new rights for fathers and adoptive parents – are one in a series of employee provisions introduced by the Government. By 2006, flexible working rights are to be extended to employees with school-aged children, thereby providing statutory rights to virtually all UK employees. “These new regulations, when coupled with changes to the working time directive, the equality and diversity in the workplace act, and extensions to the discrimination act, make the time ripe for companies to adopt a systematic approach to introducing more agile workplaces.”

The survey, which included 1,450 Human Resources executives across the United Kingdom, found that many employers are concerned about the increasing complexity of Employment Law, and 25% of employers claim that the growing legislation is the single biggest influence on labour productivity.


About JBA Limited
JBA Limited provides strategic consultancy on the business impact, organisational changes and corporate cost savings around Flexible Working. JBA advises organisations on how best to avoid the costs and overheads associated in complying with the UK Employment Act, while turning flexible working into tangible, business benefits that directly add to the bottom line profitability of a company. Customers include blue chip companies such as, HSBC, Insig, Royal & SunAlliance, Shell, Procter & Gamble, and Western Union to name but a few. Based in Henley-on-Thames, JBA is led by John Blackwell, a visiting fellow at three UK universities and author of the best selling book, “Knowledge Management: A State of the Art Guide.” He also has a forthcoming book titled, “Who’s Driving Us To Work: The Flexible Worker.” www.jbassociates.uk.com
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