PROTECTING WORKFORCE STABILITY AMID RISING COSTS -LABOURNET

Just as many organisations were settling into established office-based, hybrid, or limited remote working models, rising fuel prices linked to ongoing conflict in the Middle East have introduced a new disruption. Increased commuting costs are once again forcing corporates to reconsider how, where, and when work is performed. The appropriate response from employers will depend on the nature of the work, the operational needs of the business, and the legal framework within which it operates. Crucially, employment contracts, policies, and people practices must align with these realities. 

The Legal Landscape of Office Attendance and Flexibility

Where remote, hybrid, or flexible working arrangements were initially introduced, whether on a temporary or evolving basis, employers and employees alike are now reassessing how work should be structured on a longer-term basis. In some cases, prolonged flexibility may become embedded in workplace practice and could give rise to a tacit term of employment; in others, operational realities may justify increased office attendance. Either approach requires careful consideration to avoid unintended changes to terms and conditions of employment and the associated risk of unfair labour practice or constructive dismissal claims. In navigating these decisions, employers should be guided by sound business rationale and meaningful consultation.

Rising fuel prices and increased commuting costs have become material considerations for employees, while advancements in technology have simultaneously improved employers’ ability to monitor productivity and performance in remote or hybrid environments. As a result, partial office attendance, hybrid models, adjusted working hours to avoid peak travel times, or location based flexibility may offer a more balanced response to both operational needs and employee realities. Whether flexibility is increased or reduced, it should be supported by clear contractual provisions or, alternatively, by well-drafted remote or hybrid work policies. Regulating attendance through policy allows employers greater operational agility, provided that such policies are applied consistently, communicated clearly, and underpinned by legitimate business considerations.

Key compliance considerations include:

■ Working Hours and Overtime: Employers must ensure compliance with working time regulations regardless of where work is performed. Flexible start and finish times may assist in reducing travel costs and fatigue.

■ Moonlighting and Conflicts of Interest: Contracts should require full commitment to the employer’s business and prohibit conflicting work, particularly where employees may seek supplementary income to offset rising living and transport costs.

■ Harassment: The 2022 Code of Good Practice on the Prevention and Elimination of Harassment applies across physical, digital, and remote environments. Policies must clearly address reporting, investigation, and protection mechanisms.

■ Independent Contractors: Task-based or project roles should be governed by clear service agreements, with regular reviews to avoid misclassification risks.

■ Jurisdictional Issues: Cross-border or location agnostic working arrangements raise complex issues relating to labour law, tax, leave, and termination rights – all requiring specialist legal advice.

■ Health and Safety: Employers retain a duty of care whether employees are working remotely or commuting long distances. Prolonged travel times and increased costs may contribute to stress and fatigue, which should be considered in broader wellbeing strategies.

Remote and hybrid policies should also clearly regulate data security, confidentiality, and the responsible use of company equipment.

Driving Performance while Responding to Economic Pressures

The future of work does not lie in rigid models, but in informed and balanced decisionmaking that accounts for operational effectiveness, employee wellbeing, legal risk, and external economic pressures such as fuel price volatility. Regardless of the model adopted, performance management remains essential.

Clear deliverables, measurable performance indicators, regular engagement, and consistent feedback ensure accountability, while inclusive communication and leadership visibility help to preserve organisational culture across different work arrangements. Employers responding thoughtfully to rising commuting costs and global uncertainty without losing sight of performance and compliance, will be best positioned to retain talent, manage risk, and maintain stability in an increasingly complex and unpredictable environment.

In a competitive labour market, organisations that demonstrate genuine flexibility in how and where work is performed are also more likely to differentiate themselves when hiring, positioning adaptability as a clear value proposition to prospective employees.

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