For the first time in Australia the need for greater flexibility in working arrangements has been formally recognised in industrial relations policy - signifying a shift in how Australians may work in the future.

Flexible working arrangements were one of the government's 10 National Employment Standards (NES) announced in June, which will be used as the basis for the Rudd government's award modernisation process. Under the new standards employees will be entitled to request flexible working hours when they have been with the employer for at least 12 months continuous service, and an employer will need "reasonable business grounds" to refuse a request.

This is significant in forcing employers to recognise the need for, and value of, flexible working conditions according to consulting firm Mercer.

David Anderson, worldwide partner at Mercer, said that flexibility in the workplace, particularly for valued employees, has to be part of every employer's battle plan if they want to maintain the workforce they need to remain viable - let alone grow.

"Flexible working arrangements and benefits will become increasingly important for employers trying to attract and retain workers whilst battling a critical skills shortage and a generation of experienced workers on the verge of retirement," he said.

The 10 industrial standards will create a series of legislated minimum conditions, including a 38-hour working week plus "reasonable additional hours", four weeks' annual leave (five for shift workers), 12 months' unpaid parental leave for each parent, 10 days' personal leave and the right to request flexible work arrangements to accommodate family responsibilities.

The NES will come into effect in 2010 as part of the government's new workplace relations system. However, they will more immediately form the basis for the Australian Industrial Relations Commission to re-write and "simplify" more than 2,400 awards between now and January 2010.