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Experts warn the ‘right to switch off’ could see service-based UK businesses relocate – London Business News | Londonlovesbusiness.com

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Workers who are constantly contacted by their bosses outside of work hours may soon be entitled to compensation, as Labour champions the ‘right to switch off’ — plans that could help employees establish a clear boundary between work and personal life.

But one expert has warned that it could see more businesses relocate overseas: “About 80% of the UK economy is “service-based” so if service becomes harder to deliver, firms may look to relocate their operations to more flexible regions.”

Simon Roderick, director at Fram Search said, “In principle I’m not opposed to a right to switch off, but the legislation needs careful drafting.

“There are definitely people being contacted, with a response expected, for no good reason on a regular basis. However, we live in a globally connected world, with teams across different time zones and clients with their own deadlines to hit.

“About 80% of the UK economy is ‘service-based’ so if service becomes harder to deliver, firms may look to relocate their operations to more flexible regions.”

Adele Martins, partner at Magrath Sheldrick LLP said, “The right for workers to receive compensation for out of hours contact may help to curb more aggressive or bulling managers but unless carefully drafted it is likely to also limit flexibility.

“If, as suggested, introduction of the right will be via a code of practice, perhaps requiring workplace agreements, employers may have some flexibility to agree the out of hours contact that will / will not be acceptable and any overtime pay applicable.

“However, any rigidity is likely to negatively impact on service levels which will be unacceptable to most businesses. Legislation will also pose a significant challenge for cross boarder employers and nomadic workforces – not just for those managing employees in different time zones but also because the right operates differently in different countries.

“In some the employer is prohibited from making contact, in others employees are entitled to ignore contact without penalty.”

Chris Hayes, employment law partner and head of innovation at HM3 Legal said, “I can see this proposal encountering a lot of resistance both from a legal perspective in terms of the precise wording of any new Code of Practice, and an economic perspective from businesses, particularly SMEs.

“The proposal would be a seismic change to the way people work. Working beyond contracted hours is, for many, a normality and has been for many years. If the change does become law then perhaps the obvious question is whether companies with salaried staff will look at offering overtime pay to both ensure business continuity and to avoid potential claims.”

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