Claire Haworth: A remote working law may not solve the UK’s labour shortage

It is rumoured that the government is thinking of implementing a law extending the existing right to request flexible working. This would give employees greater flexibility in terms of how they work, including the right to remote working, as set out in the 2019 Employment Bill.

At present, only employees with at least 26 weeks of continuous service have the legal right to ask their employer to allow them to work remotely. With no mention of a new Employment Bill in this year’s Queen’s Speech, there is the potential that any new bill may give employees the right to request flexible working from their first day of employment. A large portion of the UK workforce has enjoyed some remote working privileges for the past three years, and many would welcome any new law that cemented such a lifestyle.

On the other hand, there is a concern that the right to work from anywhere may give employers a green light to bypass British workers in favour of those from abroad. With employers already finding it increasingly difficult to compete with rivals over top talent, a remote working law could lead them to place their efforts internationally, opening up a wider talent pool, where there is less demand for high wages. This could lead to a talent drain in the UK.

Although employers may think turning to foreign workers is the simple solution, a shift towards hiring staff remotely from abroad presents its own challenges. The first is the local employment rights each person will be entitled to if they work in another jurisdiction, such as minimum rates of pay, annual leave, and even rights on termination of employment.

Different countries have different laws when it comes to employment rights and guarantees. Employers will need to invest time into understanding each country’s legislation to ascertain how hiring someone remotely would work in practice.

Another aspect is that working abroad may also affect an employee’s ability to make use of certain benefits, such as private medical insurance and pension schemes. This could lead to problems around ensuring equality and fairness in the workplace. If an employee is working internationally, they may not have a right to work in the host country under its immigration laws, and therefore the immigration status of the employee would have to be considered.

Finally, with the world becoming increasingly digitalised, employers will need to consider data protection issues as well. Different countries will have various data protection laws that UK employers will need to guarantee for any worker they hire remotely, even those in other countries. This can mean additional costs as businesses will need to comply with both UK and foreign data protection laws.

Claire Haworth is an employment and HR partner at Napthens Solicitors