WFH requests could go to tribunal under Labour’s employment reforms
Lawyers are warning that Labour’s plans to make flexible working the default could place additional legal and administrative burdens on British businesses.
Under the proposed changes employees would be able to appeal an employer’s decision to refuse a flexible working request more easily through the Employment Tribunal.
Lawyers at TWM Solicitors explained that the employer’s decision could be overturned if it is considered unreasonable, which could result in compensation awards of up to £6,000.
This comes at a time when the Employment Tribunal has seen a record-high backlog of cases following the pandemic, which is expected to get worse as a result of the new Act.
The UK government’s consultation on these changes, which are part of the new Employment Rights Act, ends on 30 April 2026.
However, lawyers argue that the proposals currently offer no clear guidance on what might be deemed reasonable or unreasonable, creating legal uncertainty for businesses.
TWM Solicitors’ Oliver Milton explained that the changes could increase the burden on employers, particularly smaller businesses without HR departments.
“The new rules will potentially leave employers open to greater scrutiny for both discrimination and non-discrimination-related claims,” he added.
Milton warned that “employers should use this change as an opportunity to properly consider their flexible working request procedures.”
The Employment Rights Act was green-lit in December after several weeks of ping-ponging between Parliament and the House of Lords.
Jobs on the line ahead of reforms
The first batch of reforms from the Employment Rights Act came into effect last Wednesday, which focused on granting employees new trade union powers.
But the plan to remove the unfair dismissal cap in employment cases, expected to come into effect in January 2027, will prompt businesses to rush redundancies by Q4.
Lawyers told CityAM that to avoid expensive layoffs in 2027, businesses are expected to make significant headcount changes by the end of this year.
This comes as figures released last week showed the jobless rate crept up to 5.2 per cent between October and December, according to the Office for National Statistics (ONS), the highest level since early 2021 and slightly ahead of market expectations.