Plans for an expansion of flexible working have been delayed to help businesses survive the economic downturn, according to British newspaper The Independent.
A review into the proposed policies was apparently ordered by newly appointed business secretary Lord Mandleson around two weeks ago. The review will also look at ways of easing the burden on firms so they are less likely to go bust or haemorrhage staff over the coming months.
The newly scuppered proposals would have included offering flexible working to all parents with children under 16, rather than six at present. Paid maternity leave would also be raised from 39 to 52 weeks.
The Independent claims to have seen an internal document revealing that Lord Mandelson is drawing up an “action programme for business”. According to the newspaper, Mandelson has urged his department “to be completely focused on getting UK business through the present economic downturn and emerging stronger on the other side.”
Mandelson’s efforts to ease the burden on small firms is likely to provoke controversy – the extension to flexible working rights for an estimated 811,000 parents was a key plank for the Labour party at its recent party conference in Manchester.
Jackie Orme, chief executive of the Chartered Institute of Personnel and Development (CIPD) said delaying the flexible working legislation was sending out “completely the wrong message”, and makes the assumption “that flexible working is a burden on business, and the kind of charitable extra that can be cut back in tougher times.”
“The reality is that flexible working can deliver competitive advantage by improving employee engagement and attracting talented people to organisations that otherwise might remain outside the workforce,” continued Orme.
Plans to extend flexible working rights were recently slammed by business owners in an Alliance & Leicester
report. Almost four in ten small business owners said they will have problems offering the extended flexible working rights when they come into force, while nearly two thirds said they do not have enough staff to provide flexible cover.
© Crimson Business 2008. Ltd