What does the new Flexible Working Law mean for UK Employers?

On April 6th 2024, a new flexible working law came into force in the UK.

Called the Employment Relations (Flexible Working) Bill 2023, it gained Royal Assent in July 2024, after a concerted push by members of the opposition, and is focused on providing employees with more access to flexible working within the UK.

When was flexible working introduced in the UK? 

Even before the COVID-19 pandemic changed the world of work forever, the wheels were already in motion to give employees a greater degree of flexibility over where and when they worked. 

But the new flexible working bill was a huge boost to UK workers who were looking for more flexibility around working hours, patterns and locations from the start of their job.

This new UK legislation applies across Great Britain (England, Wales, and Scotland, but not Northern Ireland), so these statutory rights are consistent. While the core 2024 law is the same, employers should still seek specific information, advice and guidance on procedural differences in the various countries of the UK, such as, for example, how Employment Tribunals work differently in Scotland.

Employers must be aware of the impact of the new flexible working changes, and how to handle flexible working requests from their staff.

So, without further ado, let’s get into the details around the UK’s new flexible working legislation and what it means for you, as an employer, and your staff.

What is the new UK law on flexible working?

In essence, the act, also known as the Employment Relations (Flexible Working) Act 2023, means employees now have a statutory right to request flexible working arrangements from day one of their employment. Previously, an employee needed to have worked for at least 26 weeks before putting in a flexible working request.

What is classed as ‘flexible working’?

Flexible working can refer to working either hours or patterns. These may include, for example, work that is:

• Part-time (anything less than a full five-day working week)

• Term-time (during school term times only)

• Flexi-time (a set amount of hours, but with varying start and finish times)

• Compressed hours (the same number of hours, but over fewer days, i.e., working longer hours per day) – a pattern often requested by needing to share caring responsibilities with other family carers.

Does this make flexible working a right in the UK?

Previously, employees had to explain what effects (if any) they felt making any requested changes would have on their company. But with the new law, this is no longer necessary.

These new flexible working regulations are a welcome people-first initiative, offering support that means employees will feel empowered within your organisation from day one.

Flexible working changes in 2025-26 that employers need to be aware of are:

• Employers must now discuss the request with their employees before denying it, to explain the business reasons for refusal (previously requests could be denied without consultation).

• Employees can now make two flexible working requests in any 12-month period — previously it was one.

• Employers are obliged to respond to requests within two months — previously it was three.

When did the Employee Relations (Flexible Working) Act come into effect?

The Employment Relations (Flexible Working) Act of 2023 officially came into force from the start date of the 2024/2025 tax year, though some businesses have been preparing for the implementation of these measures for a while. 

Your business should have taken measures to ensure this new flexible working legislation is followed, and employees and their trade union will be taking note of how their employers respond given the publicity the new act received.

 We recommend looking through your employee or company handbook or policy documents to ensure that all guidelines are consistent, so all employee requests are treated equally. 

Does the bill mean that employers have to agree to every flexible working request?

No, this new Employment Relations Act (Flexible Working Bill) does not mean that you, as an employer, have to accept every request that comes your way. All it means is that you must consider the request and speak to the employee(s) who has made it before denying (or accepting) it, in order to explain how you have come to the decision. 

And remember, you must now respond to all requests within two months rather than three.

What are the valid reasons for an employer to refuse a flexible working request?

The new act doesn’t change the eight business reasons an employer can use to refuse a request. In fact, an employer must consider each request fairly, and can only refuse it if the decision is based on one of the following grounds:

1. the burden of additional costs

2. a detrimental effect on the ability to meet customer demand

3. an inability to reorganise work among existing staff

4. an inability to recruit additional staff

5. a detrimental impact on quality

6. a detrimental impact on performance

7. insufficient work for the periods the employee proposes to work

8. planned structural changes to the business

The key change is that the employer must consult with the employee before making a final decision. For full details on all eight reasons, seeking advice from the official ACAS guidance is recommended.

What are the benefits of the flexible working act for employers?

The new bill promotes a more open approach towards employees who want or need to work flexibly, such as a carer, or anyone who finds they suddenly need to take on new family responsibilities.

On the other hand, employers who are seen to work the hardest to try and accommodate their employees’ working wishes will likely see reduced employee turnover rates. 

Not only this, but they’ll be able to better attract talent at the recruitment stage. You should definitely learn more about the key benefits of flexible working for businesses, and you can always seek further advice from bodies such as the UK Advisory, Conciliation and Arbitration Service (ACAS).

What are the updated flexible working requirements for 2025?

Employers are now required to undertake a mandatory risk assessment for home working arrangements, with clear guidelines for the provision of equipment and tech. Updated data protection requirements under the Data (Use and Access) Act 2025 dictate that all work devices are encrypted, two-factor authentication is implemented for all system access, and that home working setups regularly undergo security audits.

A new Employment Rights Bill is expected to become law in late 2025, and should place a stronger legal emphasis on the “reasonableness” of an employer’s decision to refuse a flexible working arrangement. This means that when refusing a request, you will not only have to cite one of the eight statutory business reasons, but also provide a detailed written explanation of why that refusal is reasonable in your specific circumstances.

To recap 

To recap, the new flexible working law has granted employees the right to ask for a flexible working arrangement from day one of their employment, empowering them within your organisation from the get-go. Employers will now need to speak to any employee who makes a flexible working request before denying it, and you must do so within two months of the request.

Employees will be allowed, by law, to make two flexible working requests in any 12-month period, but as a business you can allow them to make more – which, we’d say, works in your favour when looking to attract the top talent. And finally, employees are no longer required to explain the perceived impact of their request on the company when making it.

You can read more about what employees really want from future flexible working policies by downloading our recent white paper on the state of flexible working.

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