MONEY TALK By Ruth Lea Head of Policy Unit, Institute of Directors

British employers are all too aware of this and are already amongst the most flexible in the world.

Some 40% of working women in the UK now work part-time compared with an average of only 28% in the European Union.

British employers are ahead of the game - not that they ever get any credit for it!

Tricky and costly business

But there can be problems for some businesses - especially small businesses - in allowing key workers flexible hours. We trust that this is fully appreciated.

This legislation, like so much of the other 'family-friendly' agenda, blatantly discriminates against non-eligible groups

The topic of flexible working patterns is hot at the moment because of the recent introduction of the right to request flexible working for parents with children under six or with disabled children under 18.

This right - and the other changes to rights for working parents such as extensions to maternity leave and the introduction of paternity pay - has been backed by an energetic, and presumably expensive, advertising campaign by the DTI.

This advertisement claims that "everyone will benefit" from these changes. Well, we beg to disagree.

Many employers - especially small ones - could find the extra laws tricky and potentially costly to administer.

The DTI has laid down procedures which, if not followed correctly to the letter, could end in an employer losing a tribunal case - even if he/she had a good business case for refusing flexible working.

There is the matter of the other employees who may end up covering for absent colleagues

The procedures are laid out in a 56-page booklet (gripping bedtime reading - believe me).

They comprise having to take the request seriously, following through internal grievance procedures if the employee is not happy with a refusal, then maybe going through external mediation procedures and then maybe to an employment tribunal.

The costs to business of the new legislation are not inconsiderable, even according to the DTI.

Indeed they could be as high as �250m annually.

And, according to a recent survey by Peninsula (the UK's biggest employment law firm), seven out of 10 small firms said that flexible working rules would damage their businesses and that they may have to cut staff in order to cope.

Then there is the matter of the other employees who may end up covering for absent colleagues.

Employees who are not eligible may well feel discriminated against. Which, of course, is what is happening.

Inevitable change

This legislation, like so much of the other "family-friendly" agenda, blatantly discriminates against non-eligible groups.

This agenda is potentially disastrous for business

It effectively changes the terms and conditions for one group with the possible outcome that is at the expense of other groups.

We fear that this particular piece of legislation is only the start. More of the same is almost inevitable.

Before long "the right to request flexible working" could become "the right to flexible working".

Indeed, employees may well understand the current legislation to be about the right to flexible working and feel resentful if/when the request is refused.

This agenda is potentially disastrous for business.