Flexible Working: What's Changing and How to Handle Requests Fairly

Flexible working isn't just about working from home. It covers working part time, compressed hours, flexitime, job sharing, working during school terms only and hybrid working. Since April 2024, every employee has been able to ask for it from their first day, and the Employment Rights Act 2025 will make it harder to say no. Handled well, flexible working is one of the best tools a small business has for attracting and keeping good people.

The rules today

Any employee can make a flexible working request from day one, and they can make up to two requests in any 12 months. The request must be in writing, but they no longer have to explain how the change might affect your business. That's for you to consider.

You must make a decision within two months of receiving the request, including any appeal, unless you both agree to extend it. If you're thinking of saying no, you must consult the employee first, which in practice means a proper conversation about the request and any alternatives.

You can only refuse for one of eight business reasons set out in law. They are the burden of extra costs; a negative effect on your ability to meet customer demand; being unable to reorganise the work among existing staff; being unable to recruit extra staff; a negative impact on quality; a negative impact on performance; there not being enough work during the hours the employee wants to work; and planned structural changes. The Acas Code of Practice on flexible working requests sets out how to handle the process fairly, and tribunals take it into account.

What's changing

The Employment Rights Act 2025 adds an important test. At the moment, you need to show that one of the eight reasons applies. Under the new rules, you'll also need to show that it's reasonable to refuse on that ground. You'll have to tell the employee which reason you're relying on and explain why refusing is reasonable, and a tribunal will be able to look at whether it was.

The government consulted in spring 2026 on the steps employers must take before refusing a request. The changes are expected in 2027, but the exact date hasn't been confirmed yet. If an employer gets it wrong, compensation will still be limited to up to eight weeks' pay, subject to a statutory cap. Getting the process right also protects you from more serious claims, such as discrimination.

How to handle a request, step by step

Acknowledge it and diarise the deadline. Make a note of the date you received the request and the date two months later. A surprising number of disputes start because a request simply sits in someone's inbox.

Talk it through. Meet the employee, in person or on a call, to understand what they're asking for and why it matters to them. Letting them bring a colleague is good practice. Go into the meeting with an open mind. The request might work better than you expect, or there might be a middle ground that suits you both.

Consider it properly. Look at the request on its merits, not at what might happen if everyone asked for the same thing. Think about who would cover the work, what it would cost, and what the impact on customers and colleagues would really be. Write down your reasoning as you go.

Decide, and explain your decision in writing. If you agree, confirm the new arrangement and the date it starts. If you refuse, say which business reason applies and why, and offer an appeal.

Saying yes, or “yes, but…”

Agreeing doesn't have to be all or nothing. A trial period of a few months is often the best answer when you're unsure. It lets you both see how the arrangement works in practice before committing. You can also agree a variation of the request, such as three days in the office instead of two, or a later start on some days but not all.

Remember that an agreed flexible working request is normally a permanent change to the employee's contract unless you agree otherwise. Confirm it in writing and set a date to review how it's going.

Saying no

Sometimes the answer genuinely has to be no, and that's allowed. But “our customers need us” or “it would set a precedent” isn't enough on its own. Be specific about the real impact, back it up with evidence where you can, and show you've considered alternatives. With the new reasonableness test coming, that evidence will matter even more.

Be consistent, too. If you agree one person's request and refuse a similar request from someone else, be clear about what's different. Refusing requests from some groups more than others, for example from fathers but not mothers, can lead to a discrimination claim.

Your flexible working checklist

• Update your flexible working policy so it reflects the right to ask from the first day and the two months you have to decide
• Use a simple request form and log every request with its deadline
• Meet the employee before making a decision
• Record your reasoning, especially for any refusal
• Consider trial periods and alternatives before saying no
• Offer an appeal and confirm all decisions in writing
• Train managers to handle requests consistently
• Prepare for the new reasonableness test expected in 2027

How Floreo HR can help

We can update your flexible working policy, give your managers a simple process and templates to follow, and talk through difficult requests with you before you respond. Our free HR Health Check is a good place to start. For the wider changes, see our guide to the Employment Rights Act 2025.

We support businesses across Hull, East Yorkshire, York, Leeds, Harrogate and Sheffield. Call 01482 765481 or get in touch.

This article is general guidance based on the law and the government's published plans as at October 2026. It isn't legal advice. The date for the new flexible working rules hasn't been confirmed, so check the latest position on GOV.UK and Acas, or speak to us about your circumstances.