A third of small businesses are flouting new employee rights legislation by not offering flexible working arrangements to staff, research by business software and services provider Sage UK has found.

The study also found that one in ten businesses are totally unaware that from 30 June this year, all employees were given the statutory right to request flexible working after 26 weeks employment service.

Sage stated that the updated flexible working guidelines would not only give employees greater choice, but it could afford a business to be more productive, flexible and efficient by allowing them to work any time and any location.

This view was shared by a large proportion of the 400 business owners and decision-makers surveyed; with nearly a third (32%) of employers believing the initiative will bring working arrangements into the 21st Century, and another 30 per cent believing flexible working will boost employee productivity.

Other key findings include:

  • Nearly half (46%) believe they have the technology in place to support flexible working
  • 40 per cent said flexible working will be expensive to implement
  • 26 per cent already offer flexible working as  standard to all employees

However, small businesses run the risk of being subject to an employment tribunal if they do not handle an employees' request in a ‘reasonable manner', with the findings suggesting there are a large number of firms not prepared for the guidelines.

Rob Davis, Head of Technology of Sage UK's Small and Medium Business Division, said: "This should be viewed as an opportunity, not a hurdle to overcome, as flexible working can produce immense benefits for a small business. A boost to staff morale, increased productivity and improved efficiency can all go a long way in unlocking business growth.

"Small businesses need to make sure they're set up to provide flexible working should their employees request it. Being not so flexible is no longer an option, this is a legislative directive and it cannot be ignored.

"But what this research shows is the need for small businesses to get their house in order to avoid being punished by an employment tribunal."