Employment Rights Act 2025: How to Manage Flexible Working Requests

Since COVID-19 flexible working has become a key part of modern workplace practice, with employees increasingly seeking greater flexibility around when, where and how they work.

While employees already have a day-one right to request flexible working and employers must deal with requests reasonably, further changes are expected to come into force in 2027 under the Government’s wider programme of employment law reform.

Under the proposed changes, employers who refuse a flexible working request will be required not only to identify the statutory business reason for the refusal, but also explain why that refusal is reasonable in the circumstances. Although many employers already follow this approach as a matter of good practice, it is expected to become a legal requirement once the reforms take effect.

As a result, businesses should ensure they have clear processes in place for assessing, documenting and communicating decisions relating to flexible working requests.

 Agreeing the Application

Where a flexible working request is approved, employers should ensure the decision is communicated clearly and formally documented. 

Confirming the outcome in writing helps provide clarity for both the employer and employee, while also ensuring there is an accurate record of the agreed working arrangement moving forward.

The written confirmation should include:  

• the agreed changes to the employee’s working arrangements
• The date the new arrangement will begin

Employers should also ensure the employee’s contract of employment is updated to reflect the new terms and conditions. 

This should be completed as soon as possible but not later than 28 days after the request has been approved. 

Reasonable Refusal

Employees currently have a day-one statutory right to request flexible working. Employers must consider requests reasonably and provide a decision within 2 months unless an extension is agreed with the employee.

Further amendments to flexible working law are expected to come into force in 2027. Where an employer refuses a request because of a genuine business reason, they will be required to:

• state which of the eight statutory business reasons applies; and
• explain why they believe the refusal is reasonable in the circumstances.

When handling requests, employers should follow the Acas Code of Practice on Flexible Working. Acas has confirmed that it will review and update its Code following implementation of the new legislation.

8 Reasons to Reject a Flexible Working Request

Employers may refuse a flexible working request where one of the following statutory business reasons applies: 

• extra costs that will damage the business
• the work cannot be reorganised among other staff
• people cannot be recruited to do the work
• flexible working will affect quality
• flexible working will affect performance
• the business will not be able to meet customer demand
• there’s a lack of work to do during the proposed working times
• Structural changes to the employer

The ERA will now enable a tribunal to test if refusal was reasonable and rule accordingly. The process will therefore put the onus on businesses to accommodate workers’ requests or prove why they cannot, which reopens the debate around the nature of the modern work environment and how to balance conditions, such as remote working or hybrid working agreements, with business needs.

Discrimination Considerations

Flexible working requests should always be handled carefully, particularly where an employee’s personal circumstances may be connected to a protected characteristic under the Equality Act 2010.

In many cases, requests for flexibility are linked to childcare responsibilities, disabilities, health conditions or caring responsibilities for dependants or family members. If these requests are refused without proper consideration, employers may face the risk of discrimination claims.

For example, requiring employees to work fixed hours or attend the office a set number of days each week could disproportionately affect:

• parents with childcare responsibilities;
• employees managing disabilities or long-term health conditions; or
• individuals caring for vulnerable family members.

This may give rise to indirect discrimination claims if the employer cannot demonstrate that the requirement is necessary and proportionate for the business.

Employers should also be aware of associative discrimination risks. This can arise where an employee is treated unfairly because of their relationship with someone who has a protected characteristic, such as a disabled dependent or family member requiring care.

While employers are still entitled to refuse flexible working requests where there is a genuine business reason for doing so, decisions should always be:

• carefully assessed;
• supported by clear operational reasoning;
• applied consistently across the organisation; and
• properly documented.

Taking a fair, evidence-based approach will help employers reduce legal risk while demonstrating that requests have been considered reasonably and appropriately.

What Employers Should Be Doing Now

With further reforms expected in 2027, employers should take the opportunity now to review whether their current flexible working procedures are fit for purpose.

One of the most important steps businesses can take is reviewing previous flexible working decisions, particularly where requests have been refused. This can help identify whether decisions have been made consistently, supported by clear business reasoning and properly documented.

Under the updated approach, employers are likely to face increased expectations around written justification and reasonable decision-making. As a result, accurate record keeping and clear communication are becoming progressively important.

Businesses should also ensure managers are equipped to handle flexible working requests fairly and consistently. In many organisations, managers are responsible for assessing requests and communicating outcomes, meaning inconsistent approaches can quickly create employee relations issues or potential legal risk.

Providing managers with clear guidance and practical training can help ensure requests are:

• assessed fairly and communicated clearly 
• supported by consistent business reasoning;
• reviewed with discrimination risks in mind.

This is particularly important where requests relate to childcare, disabilities, health conditions or caring responsibilities, as poorly handled decisions may increase the risk of indirect or associative discrimination claims.

For many employers, flexible working is also becoming a wider operational consideration rather than simply an HR issue. As hybrid and remote working arrangements continue to evolve, businesses may wish to review how workplace flexibility impacts workforce planning, office space usage and long-term operational strategy.

While the proposed “right to disconnect” is not currently being introduced as part of the latest reforms, many employers are still reassessing expectations around out-of-hours communication and employee wellbeing as part of wider flexible working strategies. Taking a proactive approach now will help employers strengthen compliance, reduce risk and ensure flexible working requests are managed fairly, consistently and in line with evolving employment law expectations.