REWARD
Flexible working requests – the ‘domino effect’ for payroll
MathewAkrigg ACIPP, policy and research officer at the CIPP discusses the impacts that flexible working requests can have on the work of payrollers
T he pandemic (yes, two words in and it’s already been mentioned – forgive me) has changed many things but has had particular impacts on conversations around flexible working. With many companies forced to adopt working from home in some capacity, it has opened the eyes of many to the possibilities available to them. There is no denying the positive impact that offering flexibility can have, and if implemented correctly, it can lead to a win-win situation for employees and employers alike. While it may seem like flexible working sits firmly within the remit of human resources (HR), it is important to note the ‘domino effect’ it can have on payroll teams and processes. What is flexible working? “Flexible working is a way of working that suits an employee’s needs” – from GOV. UK: http://ow.ly/SeAc30s1ytL. It is no longer the case that flexible working is just a change to start and finish times, for example, to allow parents to collect children from school. The legal right is available to all employees who wish to make a statutory application, should they meet the eligibility criteria.
The ‘domino effect’ So, how does flexible working affect payroll? The most obvious answer is where a change in working hours is requested, a salary recalculation would be required. Fairly straight forward, but what about any salary sacrifice arrangements, does this bring an employee below national minimum wage (NMW) levels? The implications on holiday entitlement and pay also need to be considered in detail. Working from home is another complex issue. On the face of it, nothing changes for payroll – same hours, same job, same pay. But is the employee now due a home-working allowance that will be paid through the payroll? If employers cover any costs exceeding the £6 a week this will need reporting to Her Majesty’s Revenue and Customs and becomes subject to tax and National Insurance contributions. Hybrid working is the new buzzword in recruitment and is another area where a simple idea can become a bigger conversation. Contracts of employment and specific working arrangements will need to be explored when establishing whether travel from home to a workplace will be eligible for tax relief.
It can cover a range of changes, including: ● start and finish times ● job sharing ● working from home ● part-time work ● compressed hours ● flexitime ● phased retirement. All the above can be requested for a variety of reasons and this is not an exhaustive list. If an employee can think of an alternative way to work, they can request it. The legal right is available to all employees who wish to make a statutory application, should they meet the eligibility criteria
| Professional in Payroll, Pensions and Reward | December 2021 – January 2022 | Issue 76 30
Made with FlippingBook - Online magazine maker