Proposed changes to flexible working: What employers need to know

The Employment Rights Act 2025 introduces significant reforms to the statutory flexible working framework which are expected to come into effect in 2027.

According to the Government’s consultation on improving access to flexible working, published on 5 February 2026, these changes are designed to increase the likelihood that flexible working requests are approved.

The current flexible working regime

Employees have a day one right to make a flexible working request. When employers receive a statutory request, they must:

• Deal with the request in a reasonable manner
• Consult with the employee before refusing the request
• Notify the employee of their decision within two months, which may be extended by agreement 
• Only refuse the request on one or more of the eight statutory grounds

The Acas Code of Practice on flexible working requests provides guidance on handling requests, and Tribunals must take the Code into account where relevant.

What is changing in 2027

Three reforms will reshape how statutory flexible working requests must be handled:

• A ‘reasonableness’ test: A test of reasonableness will apply when an employer refuses a request
• Requirement to explain why a refusal is reasonable: Employers will need to set out the business ground(s) relied on and an explanation of why refusing the request is reasonable in the circumstances
• Mandatory consultation process: Regulations will set out the steps employers must follow to comply with the requirement to consult with the employee before refusing a request. This is intended to encourage constructive dialogue and for employers and employees to explore viable solutions 

What the Government consultation proposes

The consultation (which closes on 30 April 2026) seeks views on experiences of the current statutory regime and how to improve access to flexible working. It also seeks views on training, resources and support for employers. 

Most significantly, the consultation invites feedback on a proposed statutory consultation process for employers to follow when considering rejecting a statutory flexible working request that is aligned with the existing Acas non-statutory guidance. 

The proposed mandatory process requires that: 

• A meeting is held with the employee if refusal is being considered, ideally within six weeks of the request, and within the two month decision period
• The employee is given advance notice of the meeting’s purpose so they can prepare 
• The meeting allows for sufficient discussion of the request and potential alternatives
• An authorised decision-maker attends the meeting, and:
  • Keeps a record of the discussion
  • Clarifies whether there are any reasonable adjustments considerations
  • Explains challenges with the request and refer to the relevant business ground(s)
  • Explores possible solutions, including trial periods
• Feasible alternative arrangements are considered
• The outcome of the discussion is recorded and communicated to the employee
• The employee is given written confirmation of the outcome of the meeting and the final decision made

Non-statutory guidance will be published to support employers with the consultation process. 

In relation to the new reasonableness test, the consultation confirms that ‘reasonableness’ will be considered against the existing eight business reasons for rejecting a flexible working request. There will also be statutory guidance to help employers understand and meet their obligations under the new reasonableness test, setting out how they can draw on the eight statutory grounds for rejecting a request. 

Employees may bring a claim if they consider a refusal was not reasonable. Where claims succeed, Tribunals may: 

• Require the employer to reconsider their decision 
• Award compensation of up to eight weeks’ pay (currently capped at £719 per week, up to £5,752)

What these proposed changes mean for employers

These flexible working reforms are intended to shift expectations and to make it more likely that flexible working requests are approved. Employers will need to:

• Take a more transparent and evidence-based approach to considering requests
• Ensure managers are equipped to handle requests consistently and in line with the statutory processes
• Prepare for greater scrutiny of requests that are refused given the requirement to explain why the refusal is reasonable
• Anticipate an increase in claims arising from refused flexible working requests, especially where there are wider issues such as disability and sex discrimination (where the remedy is uncapped).