24 directors toolkit
How to build a flexible workforce
A flexible workforce often means a contented workforce. Discarding a rigid structure in favour of flexibility can work wonders for the employer too. So if your business requires a flexible workforce; what pitfalls should you be looking out for? The traditional concept of an employee being engaged full-time for an indefinite period of time for one employer under a contract of employment has slowly been eroded over the years.
Atypical patterns of work assist both individuals and businesses increase flexibility and diversity in the workplace. However, with this flexibility comes the potential headache of ascertaining what obligations your business owes to which members of your staff.
The first point to establish when considering what rights and protections an atypical worker might have is whether they are:
a An employee working under a contract of employment;
b A worker; or
c Self-employed working under a contract for services.
Historically, it is employees who have benefited from the greatest array of rights as the government policy was to focus on the conventional industrial relationship.
However, with the move away from the traditional model, atypical workers today may be entitled to certain protection (whether as workers or as employees) under various modern day pieces of legislation.
Solutions The most commonly found forms of
atypical working are part-time and fixed-term employment.
In relation to part-time staff, the main provisions for an employer to be aware of are the Part Time Workers (Prevention of Less Favourable Treatment) Regulations 2000 (PTW Regulations). A part-timer is an employee who is usually paid at an hourly rate and works fewer hours than an employee who is considered full-time by reference to the custom of the organisation.
The PTW Regulations aim is to ensure that part-time workers are not treated less favourably than comparable full-time workers in relation to the terms of their contract; or by being subjected to any other detriment on the grounds of their part-time status. The Regulations apply to all workers, not just employees and there is no exemption for small employers.
Less favourable treatment is determined in accordance with the pro-rata principle. Therefore, where a comparable full-time worker receives or is entitled to receive pay or another benefit, a part-time worker should receive the same pay or benefit but reduced proportionately by reference to the number of hours they work.
A similar concept also exists for
fixed-term employees in the Fixed-term Employees Regulations 2002; however, these only apply to employees and not to workers.
What to do now?
Employers should familiarise themselves with the following forms of working and the rights and obligations that attach themselves to them:
• Agency workers • Apprentices • Casual workers
• Consultants and self-employed contractors
• Fixed-term workers • Flexible workers • Homeworkers • Office holders • Part-time workers • Secondees • Volunteers • Students on work placements
Details: Angela Shields
ashields@pitmans.com
This article is part of Directors’ Toolkit, a helpful website of FAQs about business –
www.pitmans.com/directors-toolkit/
Advising you to navigate the complex world of regulation, compliance and directors’ duties
www.directors-toolkit.co.uk NEW WEBSITE LAUNCHED...
www.businessmag.co.uk THE BUSINESS MAGAZINE – THAMES VALLEY – FEBRUARY 2014
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