Research has indicated that work flexibility is a major preference for the New Zealand workforce, with 45% employees indicating that they would rethink employment if work from home flexibility was curtailed. This suggests that the traditional work dynamic is undergoing a shift and flexible working is the future. Flexible working arrangements can benefit both employers and employees if implemented carefully.
In this comprehensive guide for employers, we outline flexible working arrangements, their relevance and the manner in which they can be implemented in the workplace.
Flexible working arrangements
Flexible working means more than working remotely as there are many types of flexible working arrangements, ranging from early starts, later finishes, working from home or flexitime.
Different types of flexibility may suit different roles. For example, frontline employees or healthcare workers may not be able to work from home but they can be afforded other flexibility, such as varied start and finish times.
The evolution of flexible working arrangements
Flexible work arrangements accommodate the modern and evolving social dynamic where the traditional primary carer roles and “homemaker” ideologies have shifted. Nowadays there is an increased focus on work-life balance set against increased financial tensions and the need for double income earners.
Flexible working arrangements are a response to some of the following social influences:
- The increase in primary caregivers entering the workforce.
- The necessity of dual career couples taking up employment, creating greater need to balance work and home life.
- Growing carer responsibilities including caring for children, parents, relatives with poor health or people with disabilities.
- The ageing workforce who need or want to continue working but require flexible options.
Types of flexible working arrangements
Flexible working arrangements are commonplace in the working environment and there are various options available to employees and businesses.
Working from home (WFH) is one of the most common types and frequently requested flexible working arrangements. Working from home is when an employee works from home or at a remote location. This arrangement can be short-term or long-term, where the work location is split between the office and home on a regular basis. Relevant considerations before allowing a WFH request would relate to technology requirements, health and safety considerations, and the impact on customers and clients.
Flexi-time allows an employee to work a set number of hours per week or fortnight, which may be varied by agreement from week to week. The needs of the business need to be considered and weighed against the flexi time arrangement.
Condensed hours refers to an arrangement by which an employee can compress their set hours of work into a shorter week. For example, a 37.5-hour week could be averaged over 4 days at 9.38 hours a day.
Job share refers to part-time work, where two or more employees work part-time and share the responsibilities for one full-time role between them.
Term-time working is where employees are able to take unpaid leave during school holidays, without loss of service-related entitlements.
Voluntary-reduced hours allows employees to reduce the number of hours they work, usually for an agreed period of not more than one year. An employee may return to normal working hours at the end of the period. The reduced hours may be organised on a daily, weekly or block basis, to suit the needs of the organisation and the preferences of the employee.
Flexible working arrangements and legislation
Under Part 6AA of the Employment Relations Act 2000 (the Act), all employees have the statutory right to request flexible working arrangements at any time. Employees can request to change the working arrangements for any purpose or reason- example, caring for children or older parents, playing sport or working in the community.
Employers have an obligation to respond to requests as soon as possible and not later than 1 month after receiving the request.
Employers must act in good faith when considering and responding to these requests and can only decline flexible working arrangements on the grounds listed in the Act.
It is good business practice to include a flexible work policy in the company handbook. The policy should clearly outline the internal procedure for submitting a flexible working request and how to implement the proposed changes.
Applying for flexible working
In requesting a flexible working arrangement, an employee can ask to change any current working arrangement on a permanent or temporary basis, and for any purpose.
The request must be in writing, and must state:
- The date on which the employee proposes that the variation take effect and, if a temporary arrangement is sought, how long they are requesting the arrangement to continue for
- That the request is being made under part 6AA of the Employment Relations Act 2000
- Details relating to the variation which is being requested
- Any changes the employee believes the employer will need to make to reduce any effect on the business should the request be approved
Responding to flexible working requests
An employer has a duty to consider every flexible working request in good faith and must reply in writing by no later than one month after the request is received.
If an employee affected by family violence requests a short-term flexible work arrangement, an employer must respond as soon as possible, but no later than ten working days from the day the request was received.
Any agreed changes should be recorded in writing to make clear what is changed and for how long.
Grounds for refusal of flexible working requests
While an employee has the right to request a flexible working arrangement, an employer has the right to refuse a request only if the request cannot be accommodated on 1 or more of the following grounds:
- Inability to reorganise work among existing staff
- Inability to recruit additional staff
- Detrimental impact on quality
- Detrimental impact on performance
- Insufficiency of work during the periods the employee proposes to work
- Planned structural changes
- Burden of additional costs
- Detrimental effect on ability to meet customer demand.
An employer must refuse a request if the request is inconsistent with a collective agreement in terms of which an employee is bound.
To decline a request, employers must clearly explain why the request was declined and refer to the business-related grounds for refusal.
Employers can also agree to a trial informally before the employee submits their written request. The trial should be documented in writing. If the employer and employee have agreed to a trial, they have agreed to an extension of time to make a final decision. This should be recorded in writing, including start and end dates and any changes to the employee's salary.
Creating smart workplaces with Peninsula
Whether you’re considering flexible working or looking to integrate policies within your workplace, there are many technical and legal aspects to be taken into account. Peninsula has worked with many small businesses in New Zealand helping them meet their HR and health and safety responsibilities. Our support and services offer integrated advice and are tailor made for your business and industry. We work with thousands of businesses in New Zealand on matters of employment relations and health and safety. Talk to our team today.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.
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