"Radical" reform of parental leave announced

Flexible parental leave

The Deputy Prime Minister, Nick Clegg, has today announced plans to introduce a new flexible system of parental leave, as part of what is described as a “radical” shake-up.

Under the reforms, a mother will still be required to take a compulsory 2 week period of leave after the birth of a child, but at any time following that, the parents will be able to ‘opt in’ to the new flexible parental leave system, and to share what remains of the maternity leave period.

It will be up to both parents to decide how they share the remaining period of leave – they may choose to split the leave between them, take it in turns, or take some time off together.

A new statutory payment for parents on flexible parental leave will be introduced, with the same qualifying requirements that currently apply to maternity and paternity pay.

The Government intends to consult next year on the detail of how the new system will be administered, but has indicated that parents will likely be required to provide a self-certified notice of their leave entitlement to their employers, and to give 8 weeks’ notice of their intention to take flexible parental leave.

As part of the reforms, fathers will gain the right to take unpaid leave to attend 2 antenatal appointments, though statutory paternity leave will remain at 2 weeks for now (the Government has suggested that this may be extended once the economy is “in a stronger position”).

The TUC’s general secretary, Brendan Barber, has welcomed the announcement, saying that the reforms should “nudge” employers into modernising working practices to make “life easier for millions of working parents”. He believes that businesses will benefit from a more engaged workforce and a larger pool of people from which to recruit.

The response from employers, however, has been to express some concern. The British Chamber of Commerce have stated that the plans create uncertainty and lack of stability for employers, and could cause friction between parents and employers. The Federation of Small Businesses has said the changes will add to burdens on firms.

Flexible parental leave will be introduced in 2015.

Changes to flexible working

Also announced today were proposals to extend the right to request flexible working to all employees. The aim is to give greater choice and freedom to both workers and businesses, by removing cultural expectations that flexible working benefits only parents and carers. This would open up the possibility of grandparents applying for flexible working to help with the care of their grandchildren.

As part of the reform of flexible working, the Government has indicated that it intends to remove the current statutory procedure for considering flexible working requests. Instead, employers will be under a duty to consider all requests in a reasonable manner. This aspect will be greeted with more enthusiasm by employers.

The changes to flexible working will be introduced in 2014.

Comment

Nick Clegg has said that the changes will “shatter the perception that woman have to be the primary care-givers”. However, we suspect there will be less of a “shattering” of perceptions, and more of a very slow and gradual shift as a result of these reforms.

The eagerness of the Government to promote these measures is in marked contrast with the generally deregulatory trend in its policy towards employment law.

Plans for new 'owner-employee' employment contracts announced

The Chancellor of the Exchequer, George Osborne, has announced plans to introduce a new type of employment contract – an 'owner-employee' employment contract. ‘Owner-employees’ will receive between £2,000 and £50,000 worth of shares (which will be exempt from capital gains tax) in exchange for giving up certain rights, including redundancy rights, the right to claim unfair dismissal and the right to request flexible working or time off for training.  Owner-employees will also be required to give 16 weeks’ notice of their return from maternity leave, rather than the current 8 weeks.

The new ‘owner-employee’ status will be optional for existing employees, but new employees may be required to enter into this type of contract. 

The Government has suggested that this new type of contract is principally intended for fast growing small and medium sized companies, but any type or size of company will be able to use them.

The response to the announcement has been mixed, with many saying the proposals will have little impact. The TUC general secretary Brendan Barber said:

"We deplore any attack on maternity provision or protection against unfair dismissal, but these complex proposals do not look as if they will have very much impact, as few small businesses will want to tie themselves up in the tangle of red tape necessary to trigger these exemptions.

"This looks more to be said for effect than because it will make much difference, but we will be vigilant to ensure that they do not represent the thin end of a future anti-employee wedge."

Later this month the Government will consult on some of the details of the contract (including the proposed forfeiture provisions), with a view to the new type of contract being in use by April 2013.

London Olympic and Paralympic Games 2012: Employee Considerations

This post was written by Ed Hunter and Ruth Bonino.

The London 2012 Olympics and Paralympics Games are just around the corner! The Olympic Games take place from 27 July to 12 August 2012 and the Paralympic Games from 29 August to 9 September 2012.

This briefing contains guidance on the issues employers are likely to face as a result of employees who have volunteered at the Games, and those wishing to attend events as spectators or follow the Games at work. Due to the unique circumstances of the event it is important for employers to have clear policies in place well before the Games, and for the policies to be communicated effectively to all staff.

Volunteering at the Games

The selection process for volunteers for the Olympic and Paralympic Games is well under way, with offers currently being made to successful applicants. Volunteers are expected to attend a minimum of three training sessions prior to the Games and ten volunteer event days during the Games as part of their commitment to the programme. Therefore employers need to start thinking about how to manage requests for time off for such training and event days.

Employers are not legally obliged to give employees time off for volunteering. However, many employers recognise the benefits to their business of allowing employees to engage in volunteer programmes during working hours, in terms of personal development, morale boosting and contribution to the community. Some employers therefore give employees an agreed quota of paid leave per year in order to volunteer.

Ultimately, it is up to the employer to decide whether volunteers will be required to take annual leave in order to carry out their role, or whether they will be offered the opportunity of taking special paid or unpaid leave. Where employers are unable to accommodate requests for time off, employees should be made aware of this as soon as possible. In this situation, unless the employment contract provides otherwise, the employer is entitled to turn down the employee’s request provided the employee is given as many days’ notice as the length of the requested leave.

Alternatively, employers may wish to offer employees the opportunity to work flexible hours or to make up lost time at a later date. Any special arrangements to enable employees to volunteer for the Games must be established and implemented in a fair, consistent and non-discriminatory manner, so as to avoid discrimination, victimisation or constructive unfair dismissal claims. 

Benefits of a special annual leave policy

Many employers will face a larger than normal number of requests for annual leave from employees wishing to attend or watch events or from employees wishing to get away from the crowds and travel disruption. Despite the staffing pressures that employees’ absences may put on businesses, holiday requests must be handled consistently, fairly and within the appropriate time frame.

Depending on the particular staffing needs of their business, employers may wish to issue a special holiday policy for the Olympic period. This is particularly important for businesses which have limited capacity for flexibility in this respect. Competing requests for leave during the Games could be dealt with on a "first come, first served" basis, by way of a lottery or on any other non-discriminatory basis. The policy should be clear, fair and transparent and staff should be informed of the policy at the earliest opportunity.

Where normal holiday procedures are to apply, employers should review their existing policy and ensure that it covers the procedures for approving annual leave and for dealing with multiple requests for the same period. Staff should be reminded of the procedures, and how they can access the policy, in the months leading up to the Games. In addition, where there is likely to be difficulty approving multiple requests, it may be sensible to inform employees of this, in order to give them sufficient time to consider their options and to manage expectations. 

Employers may wish to set a date by which all requests for holiday over the Olympic period should be submitted. This may help to ensure that requests are dealt with consistently, minimising the risk of claims of unfair or discriminatory treatment from employees who are not granted leave. Setting up a designated email account for dealing with these requests and other related issues may help to coordinate this process.

To reduce the likelihood of those employees who are refused requests for holiday failing to turn up for work, employers may choose to remind staff of their absence notification procedures and that any unauthorised absence will be regarded as misconduct. In the event of an unauthorised absenteeism during the Games, the usual disciplinary procedures should be followed. Employers should be careful not to jump to conclusions if an employee arrives late to work or calls in sick. In all cases a proper investigation should be conducted. 

Flexible working

Although there is no general statutory right to request flexible working, many employers may consider accepting requests for flexitime or other changes to working patterns from employees wishing to attend the games, volunteer or avoid travel disruption. In some cases employers may need to offer flexible working in order to comply with requests from Transport for London to reduce their headcount during the Olympic period. This is only likely to be an issue for large employers based in critical areas in central London. 

If staff are permitted to work from home during the Games it is important to ensure that they have access to the necessary facilities and resources at home. Remote access to IT systems is likely to be severely affected by abnormal usage levels, therefore some employers may need to “top up” the capacity of their remote servers to deal with the additional demand. This can be arranged on a temporary basis. 

If flexible working is introduced, it should be formalised to ensure that staff are aware of their responsibilities during this period, and to reduce the likelihood of employees using the opportunity for flexible working as a means of watching or attending events, when they are supposed to be working. The policy should be communicated in good time and in a way that is easily accessible to all employees – for example, through the staff intranet.

Watching and following the Games at work

Many employees will want to watch or follow Olympic events during working hours. This can lead to problems with computer systems if large numbers of staff are simultaneously streaming live coverage, and despite possibly lifting staff morale, it may lead to a fall in productivity.

Employers may wish to provide facilities, such as a projector screen, televisions and/or radios, for employees to view or listen to events in communal areas during the working day. This will also provide opportunities for impromptu social meetings which may help to boost team morale, and employees may be less prone to breaching the rules at other times. However, employers should have a clear policy on what is permissible in terms of employees viewing and following coverage at work, and the consequences of breaching the policy. It would be sensible for such a policy to set out the employer’s expectations and requirements in this regard, emphasising that this is a privilege and not a right and that the work will need to be done.