Government's business leader warns on flexible working

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The government's top advisor on business has said flexible working plans could be too much for companies to handle.

John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform (BERR), said in a speech that the government must be careful with new legislation potentially extending the right to request flexible working - be it telecommuting or flexible hours - to anyone with children under the age of 18.

"We want to avoid a situation where employers are so overwhelmed with requests from newly eligible groups that they feel they have to say no to everyone," he said.

Currently, the law gives anyone with children under the age of six the right to request flexible working from their employers. New rules currently being examined could mean any parent is given that right - a move supported by the Children's Minister Beverly Hughes.

A study by BERR last year showed that most firms already offer flexible working of some sort.

Hutton said the current rights have helped working parents, but only because it has been so precisely targeted. He warned that an increasing number of people requesting flexible working could lead to companies refusing to consider any applications and even rolling back changes.

"Put simply, the more people that have the right - the harder many businesses may find to prioritise those whose needs are greatest," he said in his speech. "We want to avoid a situation where employers are so overwhelmed with requests from newly eligible groups that they feel they have to say no to everyone."

Sally Low, director of policy at the British Chambers of Commerce, praised Hutton's speech. "It's reassuring that John Hutton recognises the additional burden that an extension of flexible working will place on employers. Our members are already embracing flexibility and our survey research indicates that more than 90 per cent are offering some form of flexibility to their employees. The burden for employers is in formalising this process and changing flexibility from an opportunity into a right."

But the Trades Union Congress disagreed, calling for the right to request flexible working to be extended to everyone - regardless of whether they have children or not.

TUC's general secretary Brendan Barber said in a statement: "The business lobby has opposed the right to request flexible working at every stage, despite the fact that millions of parents and carers have benefited without any cost to employers."

He added that it would be easier for employers to manage a universal right to request instead of having to examine each case. "At the very least, the government should match the Conservative Party pledge to extend the right to request flexible working to all parents. But it should be more ambitious and extend it to all workers."

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