Labour announced its “plan to make work pay” this summer, asserting it is “time for change.” Among its several proposals, spearheaded by Deputy Prime Minister Angela Rayner, the “right to switch off” and plans to make work “more family-friendly” have left business leaders puzzled about their implications.

The confusion arises as Labour has yet to elaborate on these proposals beyond a 20-page document released pre-election. The new government criticizes the “culture of presenteeism” for damaging morale and productivity, advocating for a “right to switch off.” To enhance work-life balance, they propose flexible working, in terms of both location and timing, as “the default from day one for all workers.”

Beth Hale, an employment law partner at CM Murray, has fielded queries from clients about preparation for these changes. She advises, “don’t act yet until we see the detailed plan.”

The “right to switch off” is expected to involve a mutually agreed code of practice between employers and employees, defining normal working hours when staff should be available for contact. Hale indicates that violations of this agreement might not lead to standalone claims but could enhance compensation in cases of unfair dismissal or harassment brought before a tribunal.

Labour’s vision of making flexible working the norm, rather than the exception, mandates tougher criteria for turning down such requests. Hale notes, “currently, flexible working requires an application; the plan aims to restrict refusals.”

CEOs worry that a universal solution may not fit all sectors. Tina McKenzie from the Federation of Small Businesses highlights that different industries, such as pubs versus the NHS, require bespoke solutions. Hale concurs, emphasizing the need for employers to reject arrangements unfit for specific roles.

The British Chambers of Commerce plans to organize discussions with business members and ministers next month to delve into these policies.

Jamie Cater from Make UK insists businesses should retain the ability to reject flexible working where impractical while structuring the right to disconnect to balance employee well-being with urgent business needs.

Many large companies already have flexible working policies, causing confusion about Labour’s objectives. An insider at a FTSE 100 company remarked, “we’re unsure what problems the government targets.”

Matthew Aldridge of igus UK observed younger employees naturally embrace the right to switch off, unlike older colleagues who often stay connected after hours.

Alexandra Hall-Chen from the Institute of Directors suggests any right to disconnect should protect employees choosing to ignore after-hours communication rather than ban employers from contacting them.

Michael Stull from Manpower UK notes companies must offer flexible working to stay competitive in a talent-short market. Hall-Chen adds it’s a key tool for attracting and retaining top talent, supported by IoD research indicating high levels of remote and part-time working across organizations.

During the post-lockdown talent war, businesses relaxed flexible working rules to attract candidates. Despite the shifting power balance toward employers in a slowing job market, few companies have reverted to stricter policies.

Claire McCartney from the CIPD states that remote work is here to stay, with organizations recognizing its benefits for performance, employee satisfaction, and business flexibility.

Labour hopes its proposals will boost productivity and growth, but some business leaders fear improperly implemented changes could backfire. A retail CEO warned of potential unintended consequences.

Stull cautioned that changes to worker rights could increase costs and risks, possibly slowing business expansion. His recruiters have observed a hiring slowdown as employers await the outcomes of Labour’s plans.

Neil Carberry from the Recruitment and Employment Confederation noted, “broad consensus exists on most proposals,” but stressed the need for Labour to ensure practical implementation.

A Department for Business and Trade spokeswoman acknowledged many employers already provide family-friendly conditions, boosting morale and retention. She underscored that flexible working arrangements make sound business sense, and Labour’s plan aims to enhance productivity while supporting businesses to foster sustainable economic growth.