What are the reasons for refusing flexible working in the UK?

Since the Employment Rights Act 2025 received Royal Assent in December 2025, UK employers face tighter scrutiny when refusing flexible working requests. A procedurally weak refusal now carries greater risk: tribunals can award up to 8 weeks' pay for process failures, and where a refusal disproportionately affects a protected characteristic, uncapped discrimination compensation may apply under the Equality Act 2010. Getting the process right in 2026/27 is therefore both a compliance and a financial priority.

How does flexible working work in the UK?

Flexible working in the UK allows employees to request changes to their working pattern, including hours, location, or schedule.

Since the new flexible working law came into force in April 2024, employees can make a request from day one of employment, and employers must respond within 2 months.

Employees can make two requests per 12-month period, and each request must be considered reasonably (GOV.UK).

👉To note: 

Following the Employment Rights Act 2025, employers must now also demonstrate that any refusal is reasonable, not just grounded in one of the 8 statutory reasons. Fuller procedural requirements, including a formalised consultation process before refusal, are expected to take effect in 2027 under secondary legislation.

What are the different types of flexible working?

The different types of flexible working include changes to working hours, patterns, or location.

Common types of flexible working are: 

• Remote or hybrid working: employees work fully or partly from home or another location outside the office, reducing commute time and offering greater autonomy over the work environment

• Part-time working: employees work fewer hours than a standard full-time contract, often across fewer days per week, with pay and leave entitlements adjusted proportionally

• Compressed hours: employees work their full contracted hours across fewer days, for example a 4-day week with longer daily hours, maintaining full-time pay

• Flexitime: employees have flexibility over their start and finish times within a defined core hours window, typically agreed in advance with the employer

• Job sharing: two employees split one full-time role between them, dividing responsibilities, hours, and pay according to a formal agreement

• Staggered hours: employees within a team work different start and finish times to spread cover across a longer operational window, without changing total hours worked

Each type impacts business operations differently. Remote working may reduce oversight and require investment in digital infrastructure. Compressed hours can leave gaps in cover on non-working days. Job sharing requires strong coordination to avoid duplication or handover failures. Part-time arrangements in small teams can increase workload pressure on remaining staff. These operational factors directly inform whether one of the 8 statutory refusal grounds legitimately applies.

What is the UK law on flexible working?

UK law on flexible working is governed by the Employment Rights Act 1996, as significantly amended by the Employment Rights Act 2025 (Royal Assent December 2025). The core framework, including the day-one right to request flexible working, the 2-month response window, and the limit of 2 requests per year, has been in force since April 2024.

Employers must:

• Follow the ACAS Code of Practice on requests for flexible working, which tribunals will take into account when assessing whether the employer acted reasonably (ACAS).

• Handle requests in a reasonable manner

• Consult with the employee before making a decision

• Respond within the statutory timeframe of 2 months

• Provide a valid business reason grounded in one of the 8 statutory grounds if refusing

Failure to follow the correct process can expose employers to multiple forms of liability:

• Employment tribunal claim: an employee can bring a claim if the employer fails to handle the request reasonably, does not consult before refusing, or provides no valid business reason

• Compensation award: tribunals can award up to 8 weeks' pay, capped at the statutory weekly limit of £751 from 6 April 2026 (a maximum of £6,008 for procedural failures)

• Discrimination claim: if a refusal disproportionately affects employees with a protected characteristic (e.g. disability, sex, religion), it may give rise to an indirect discrimination claim under the Equality Act 2010, where compensation is uncapped

⚠️ Warning: 

Even where an employer relies on a valid statutory reason for refusal, poor documentation or inadequate consultation may increase the risk of tribunal challenge. Employers should retain written records of each stage of the decision-making process.

What are valid reasons for refusing flexible working?

Employers can only refuse flexible working for 8 statutory business reasons, as defined under Section 80G of the Employment Rights Act 1996 and confirmed in GOV.UK flexible working guide.

Statutory reasons for refusal:

When can an employer refuse flexible working in practice?

An employer can refuse flexible working where one of the statutory business reasons applies directly to the role, operational requirements, or organisation structure.

Common examples include:

• Customer-facing roles that require fixed on-site hours to maintain service levels

• Small teams where work cannot be redistributed without creating operational pressure

• Planned business restructures or organisational changes that make long-term adjustments impractical

• Roles requiring physical presence, direct supervision, or access to site-specific equipment

📌 Example: 

A retail employer may refuse a remote-working request where the employee’s duties must be carried out in-store to serve customers directly.

What is best practice for managing flexible working requests?

Best practice for managing flexible working requests involves transparency, consistency, and clear communication at every stage of the process.

Key steps for employers:

1. Acknowledge the request promptly in writing

2. Hold a formal consultation meeting to discuss the proposal

3. Assess operational impact against the 8 statutory business reasons

4. Document the decision and provide a clear business rationale for any refusal

5. Explore alternative flexible arrangements or trial periods if the original request is not feasible

💡 Good to know: 

Even if a request is refused, offering a compromise can improve employee satisfaction and retention.

How should employers prepare for flexible working requests?

A written flexible working policy is strongly recommended, and employers can use a dedicated template or guidance to create a flexible working policy that clearly sets out the process for making and handling requests, the criteria used to assess them, and the appeal route available to employees. Such policies should be reviewed at the start of each tax year to reflect any updates to ACAS guidance or statutory framework changes.

⚠️ Warning: 

Where a flexible arrangement is agreed, any change to hours, location, or schedule must be formalised in a contract amendment, as flexible working changes contractual terms. Verbal agreements are not sufficient and leave both parties exposed if the arrangement is later disputed.

How can payroll and HR systems support flexible working?

Payroll and HR systems can support flexible working by tracking hours, managing schedules, and ensuring accurate pay.

They help employers:

• Monitor working patterns and compliance

• Adjust pay calculations for part-time or variable hours

• Maintain accurate employee records

This helps reduce administrative burden while ensuring consistency across teams.