According to the Equal Opportunities Commission, 52% of men and 48% of women say they want to work more flexibly and 6.5 million people in the UK could be using their skills more fully if greater flexible working was available. The suggestion is that rigid models of work are driving highly qualified workers into jobs below their skill level in order for them to have a life outside of work. It is against this cultural backround that the Department of Trade and Industry issued a consultation paper in February 2005 on work and family life, and this culminated in the Work and Families Act 2006.

With many of Aberdeen and Grampian Chamber of Commerce’s businesses ranging from sole traders to multi-national corporations, it is important to understand the impact for employers and employees.

Many provisions of the new Work and Families Act will take effect from 1 April 2007. While the new Act has been welcomed by family-friendly charities and organisations, there is a concern amongst smaller employers that they will face greater difficulty in complying with the law. They have concerns about the financial burden of employees on parental leave, finding cover for them and satisfying flexible working arrangements.

The Act broadens the eligibility for additional maternity and adoption leave, which in turn places a heavier burden on smaller employers faced with the prolonged absence of key personnel.

From 6 April 2007, employees who care for adults will have the right to request flexible working.  This is another example of the broadening of family-friendly legislation. According to the Equal Opportunities Commission's research, this could affect 4.4 million carers of working age in the UK.  Employers will need to have justifiable business reasons to refuse a request for flexible working and this will vary according to the size of the organisation and resources available to it.
 
However some aspects of the 2006 Act are more welcome for employers. If an employee on maternity leave wishes to change her return to work date, the Act doubles the amount of notice required from four weeks to eight weeks. This will enable employers to be provided with advance warning of an early return and to manage staffing levels accordingly.

Clearly there is a balancing act between family-friendly legislation and the financial burden placed on employers in complying with the legislation. The new law should help to reduce employees trading down or dropping out to achieve a better work-life balance as families develop, and enables a more motivated, engaged and skilled workforce to meet commercial demands.

Sheila Gunn is Head of Employment at UK law firm Shepherd and Wedderburn.