A landmark report from the House of Lords has issued a stark warning that the Labour Party's proposed workers' rights reforms could embroil British businesses in years of litigation from employees seeking to work from home.
Unclear 'Reasonable' Definition Threatens Tribunal System
The House of Lords Home-based Working Committee concluded that the employment tribunal system, already under strain, risks being overwhelmed by claims from staff demanding more flexible arrangements. The core of the problem lies within Labour's Employment Rights Bill, which is currently progressing through Parliament. The bill grants all employees the right to request flexible working from their first day in a job.
While employers would retain the ability to reject such requests, they could only do so where it is deemed reasonable. Peers have sounded the alarm, stating that it is currently unclear how 'reasonable' will be defined. The committee's report, titled 'Is working from home working?', cautions that without clear statutory guidance, this ambiguity will inevitably lead to a flood of disputes needing resolution in court.
Employer Liability and Risk of Industrial Action
The report highlights further unintended consequences of the shift to home and hybrid working. It warns that employers face potential lawsuits if employees have accidents at home, such as tripping over or scalding themselves with hot tea, as employers still have legal responsibilities towards remote staff under health and safety legislation.
Furthermore, the peers exposed a significant inequality in remote work, noting it is most often enjoyed by university-educated professionals living in London, a trend that risks exacerbating divides in the workforce. The report also raises the prospect of mass industrial action, stating that some workers, including civil servants, may be prepared to trigger strikes if they disagree with mandates to return to the office.
Government Guidance Urged to Avert Crisis
Baroness Rosalind Scott, the committee chair, urged the Government to provide clarity. While we don't expect the Government to legislate further on a subject that is best handled by employers and workers, it should provide relevant guidance, she stated. The committee has recommended the Government produce statutory guidance defining the 'reasonable' requirement to prevent undue pressure on the tribunals.
The report also pointed to a potential conflict in government policy, noting the discrepancy between the 60 per cent mandated office attendance for civil servants and plans to close 11 London office buildings. It concluded that while home-working could aid in getting the disabled and long-term sick back into work, the long-term social and economic effects remain unclear and could be negative for innovation and productivity. A Department for Business and Trade spokesman said the government would consider the findings before responding next year.
