According to a survey of over 1,000 employers by the Chartered Institute of Personnel and Development, 10% of those who responded indicated their intention to reduce pay and benefits for those who continue to want to work from home. In the survey, 4% of companies indicated that they had already done so.
Since lockdown many employers have been seeking to find ways to encourage employees to return to the workplace voluntarily. With many still not doing so employers are beginning to take a tougher stance by insisting that they come in.
Most employment contracts confirm a specific place of work from which the employee will be based. Although the lockdown restrictions brought in by the Government overrode those for a time, the ending of lockdown means that the contractual terms are re-established and the employer is entitled to insist upon compliance with the contract. A failure to comply with the contractual terms can result in disciplinary action and even dismissal for the most serious or persistent of cases.
If an employee wishes to vary the contract to secure permanent home working then they must make a flexible working request which the employer can then consider. Most employers are rejecting such requests insisting on at least 60% attendance in the workplace however some are now showing more willingness to consider permanent home working as long as there is a corresponding cut in pay.
The rationale for looking at pay levels is that employees, particularly around larger cities and particularly London, will receive an enhanced salary to allow for the additional cost of commuting to and from the office and higher living costs. If they no longer have those costs because they have relocated to a cheaper area and no longer need to commute, the rationale goes that their pay should be reduced.
Understandably employees are less than thrilled at the prospect and with the current difficulties recruiting and retaining staff many employers have stepped back from taking this step so far. It is likely though that we will see employers flexing their muscles on this as and when the job market swings back in their favour.
If you have any queries in respect of home working or flexible working please contact our Gary Smith on 01279 712576 or via email gsmith@nockolds.co.uk.