CIPD attacks Government plans to re-examine flexible working extension

The Government had planned to give employees the right to ask for flexible working arrangements for children up to the age of 16. The current rules only give that right for parents of children up to the age of six.

But new Business Secretary Lord Mandelson has announced a review of all policies, including the extension of the flexible working rights, in the light of the economic downturn.

The Chartered Institute of Personnel and Development (CIPD) has said that the potential u-turn is based on a fundamental misconception about the measure.

"These reports send out completely the wrong message. They assume that flexible working is a burden on business, and the kind of charitable extra that can be cut back in tougher times," said CIPD chief executive Jackie Orme. "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."

The BERR review is taking place in the light of the recent economic downturn triggered by a crisis in the credit markets.

"The new Business Secretary Peter Mandelson has said that he will look at the appropriateness of new regulations due to come in in the light of the economic situation, look at the costs and benefits of them," said a BERR spokesman. "One of those is the potential change to flexible working arrangements but no decision has been made."

The spokesman did not dispute the arguments presented by the CIPD that flexible working benefits businesses. "All we have said is that we will look at the costs and benefits and those are exactly the arguments we will be taking into consideration," he said.

Parents of children who qualify are allowed to ask for flexible working arrangements. They have no entitlement to new working patterns but employers are obliged to consider such requests seriously. Employers are free to extend arrangements to parents whose children are older than six.

The CIPD's Orme said that the current regime was successful because it was not prescriptive and did not over-ride the needs of business.

"The existing right to request flexible working is a model example of light-touch regulation that has helped to change attitudes without causing difficulties for businesses," she said. "Our research shows that many firms, large and small, are going well beyond the existing regulations in any case – extending flexible working to many more employees than required by law."

"But the message sent out by a delay to 'reduce burdens' on business will damage efforts to make the substantial business case for flexible working," she said.

The CIPD said that there are concrete business benefits for companies who allow their employees to work flexibly.

"Our research shows that part-time and flexible workers are happier, more engaged with their work, and therefore more likely to perform better and be more productive," she said. "This is exactly what hard pressed employers need in tougher times."

The Government had decided to act on the basis of a report that it had commissioned by Sainsbury's director of human resources Imelda Walsh. The consultation period it announced in August had been scheduled to run until 18 November. The Government spokesman said that there was no time frame for Mandelson's review.