The existing day one right to flexible working will be enhanced providing that a request can only be refused where it is reasonable to do so (in addition to the eight statutory business reasons). An employer will also need to state the grounds and reason for their refusal.
ONGOING (anticipated Autumn 2027)
- ERA: Following the government's consultation response, the new statutory consultation process and reasonableness test are intended to take effect in autumn 2027, with the process to be set out in regulations.
- Acas has published a draft revised statutory Code of Practice on handling flexible working requests, open for consultation until 17 December 2026. The revised Code is anticipated to take effect alongside the new statutory rules in autumn 2027. Acas will also update its non-statutory guidance.
- Action
- With many employers reviewing their hybrid arrangements, more flexible working requests may arise which will need to be managed carefully in line with the existing statutory requirements and discrimination obligations. Before the new proposals take effect, managers may find themselves under increasing pressure to agree to requests and will need to manage expectations.
- Train managers on the new consultation process and reasonableness requirement, including handling competing requests and identifying wider discrimination risks. Ensure they distinguish statutory flexible working requests from reasonable adjustments under the Equality Act 2010: the regimes remain legally separate, and there will be no mandatory requirement to ask employees at the meeting whether their request is a reasonable adjustment.
- Consider how roles can be made more flexible and whether trial periods, temporary arrangements or different start dates could address business concerns. Trial periods will not be a statutory requirement, but can help employers and employees explore workable solutions.
- Review flexible working policies now to build in a structured consultation meeting before rejection, clear steps for identifying challenges and exploring alternatives, and written notification of outcomes. Where the decision-maker does not attend, ensure managers have sufficient authority or a clear escalation route to explore alternatives meaningfully.
- Monitor the Acas consultation and final regulations and guidance.
- In detail
- The existing statutory provisions will be amended so that as well as identifying one or more of the existing statutory grounds for refusal, an employer will also need to show that it is reasonable for it to refuse the application on that ground.
- Where an application is refused, the employer must notify the employee of the decision stating its grounds for refusing the application; and explaining why it is considered reasonable to refuse the application for those reasons.
- The ERA also provides that an employer is not required to disclose any information contrary to the interests of national security when refusing an application.
- The government has confirmed that employers must hold a meeting before rejecting a statutory flexible working request. The meeting must be conducted with a view to reaching agreement, considering the feasibility of the requested arrangement, addressing challenges where possible and exploring suitable alternatives where necessary. The confirmed process includes:
- Informing the employee of the purpose of the meeting in advance and discussing the feasibility of the requested arrangement with a view to reaching agreement.
- Holding the meeting within the existing two-month statutory decision period and giving the employee fair and reasonable notice. Further guidance on notice is expected ahead of implementation.
- Attendance by the person with authority to decide the request will not be mandatory. Employers should ensure that the meeting still enables meaningful exploration of alternatives, with clear escalation arrangements where needed.
- Clearly explaining challenges with the original request by reference to the relevant statutory business reason or reasons, and considering with the employee whether those challenges can be overcome, for example through a different start date or a trial period.
- Where the original request cannot be accommodated, considering feasible alternative arrangements. Any proposed alternative may only be rejected where a relevant statutory business reason applies. There will be no formal statutory requirement for trial periods; guidance will encourage awareness of trial and temporary arrangements.
- Providing written notification of the meeting outcome, including conclusions or agreed next steps, and separately the final outcome of the request: approval, rejection or an agreed alternative arrangement. Where an arrangement is agreed at the meeting, one communication can satisfy both requirements.
- There will be no statutory right to be accompanied at the meeting. Non-statutory guidance will continue to encourage a companion, and where a trade union is recognised employees should be allowed a union representative if they wish. Allowing accompaniment remains recommended good practice under the Acas Code.
- There will be no statutory right of appeal. Employers may retain an appeal route as recommended good practice under the Acas Code. The reforms do not prevent reasonable rejection where no agreement can be reached, but employers should be able to demonstrate a genuine two-way discussion, with challenges explained and alternatives properly explored.
- The draft revised Acas Code identifies four principles: reaching decisions based on evidence; adapting where possible to enable a request; working together to find solutions; and acting transparently and consistently. It includes examples and updated guidance on reasonable decisions, consultation, requests involving reasonable adjustments and managing multiple requests within the same team. Consultation closes on 17 December 2026.
- Impact
Since April 2024, employees have a day one right to make a statutory request for flexible working. Employers can only refuse a request on one of eight statutory grounds:
Burden of additional costs
Detrimental effect on ability to meet customer demand
Inability to reorganise work among existing staff
Inability to recruit additional staff
Detrimental impact on quality
Detrimental impact on performance
Insufficiency of work during the periods the employee proposes to work
Planned structural changes
At present, an employer must deal with a request in a reasonable manner, but the reason for rejecting the request does not of itself need to be reasonable (although other legal considerations, such as discrimination rights, may apply).
The government's intention is that the reform will see more requests being agreed, supporting working people to enjoy a better work-life balance benefitting their wellbeing and productivity and encouraging economic growth by giving employers a strong talent-pool to draw from.
However, employers may see an uptick in internal appeals and tribunal claims over the "reasonableness" of a refusal. The current statutory penalty for failing to comply with the statutory rules is eight weeks' pay (currently capped at £751 per week). However, tribunals can also order an employer to reconsider the request. Employers should also factor in that many claims are also accompanied by others, such as discrimination and constructive unfair dismissal and for which compensation awards may be far higher.
Statutory Code on a right to switch off
A statutory Code of Practice will be introduced, providing for a right to switch off.
- The government has indicated that a Code will be progressed alongside the Employment Rights Act and beyond.
- Although recent press reports have suggested that this proposal may no longer be pursued, in a House of Lords debate, a spokesperson for the government confirmed its commitment to introducing a statutory Code.
- Action
Working practices will need to be reviewed and adapted in light of any Code; understanding any impact on client/customer demands, together with training for managers on the Code's provisions, will be key.
It is important for employers in any case to remain mindful of their health and safety obligations towards employees, particularly given the prevalence of mental health issues. Consider what steps can be taken to ensure employees are supported directly or via third parties. Working practices (particularly given the current hybrid working environment adopted across many workplaces) should also be reviewed and use of technology policies revised as appropriate to ensure that all employees and managers adopt best practice and manage their time and use of technology appropriately.
Particular care will need to be taken when working with colleagues and/or other organisations across jurisdictions who may be working in line with their own jurisdiction's/organisation's requirements on a right to disconnect.
- In detail
We are awaiting further details.
- Impact
The government's initial proposal for a mandatory right to disconnect would have potentially significantly impacted business operations and the increasing flexibility many employees are seeking to manage their work in light of their own personal circumstances. Further detail on the Code is needed to understand what impact this may ultimately have.
Modernisation of health and safety guidance and regulations
Health and safety guidance and regulations will be modernised.
- A review will be undertaken as a first step and brought forward "in due course".
- Action
- Anticipate the particular issues that may arise when employing older workers or those who have long term health conditions and may have been out of the working space for a period of time. It will also be important to implement management training to recognise where individual needs will need particular support, for example where an employee is neurodiverse or has a mental or physical health condition which may require reasonable adjustments.
- Consider wider initiatives supporting the health and wellbeing of the workforce: encouraging healthy lifestyles and providing access to mental health resources and support, recognising that different generations may face different stressors, and customised benefits, including healthcare and childcare support, appealing to various age groups. The government has indicated that individuals will need to take increasing responsibility for their own health and wellbeing, supported by technology.
- In detail
The government has stated that its review will cover:
neurodiversity awareness in the workplace;
how to modernise health and safety guidance, with reference to extreme temperatures;
whether existing regulations and guidance is adequate to support and protect those experiencing the symptoms of long Covid;
and ensuring health and safety reflects the diversity of the workforce.
- Impact
- The stated focus on neurodiversity awareness and long Covid recognises the increasing need for employers to understand and have guidance on managing these issues in the workplace. The government is also committed to supporting those going through the menopause in its proposals on gender equality plans.
- The government is also tackling getting those who have been termed "economically inactive" back into work; employers should anticipate managing an increasingly diverse workforce with potentially a greater number of ill health issues.
Supporting workers with terminal illness
Supporting workers with a terminal illness through the Dying to Work Charter.
- The government has indicated that this will be implemented without legislation and will form part of the government's "longer term delivery".
- Action
Many employers are already actively supporting employees to ensure that they undertake appropriate medical checks and seek treatment at an early stage.
Pending delivery of the Charter, employers should review the support and guidance on offer; many charities are active in this space and provide guidance on illnesses addressing the workplace.
- In detail
We are awaiting further details.
- Impact
There is increasing awareness of the impact of cancer and other terminal illnesses impacting those still working and such cases are potentially likely to increase with an ageing workforce.
Getting Britain working
The government has published a white paper "Get Britain Working" with the intention of reforming employment, health and skills support to tackle rising economic activity levels, support people into good work and create an inclusive labour market in which everybody can participate and progress in work. This intended to "complement" the Make work pay reforms including those around tackling job insecurity and expanding flexible working.
- Action
- Anticipate the particular issues that may arise when employing older workers or those who have long term health conditions and may have been out of the working space for a period of time. It will also be important to implement management training to recognise where individual needs will need particular support, for example where an employee is neurodiverse or has a mental or physical health condition which may require reasonable adjustments.
- Consider wider initiatives supporting the health and wellbeing of the workforce: encouraging healthy lifestyles and providing access to mental health resources and support, recognising that different generations may face different stressors, and customised benefits, including healthcare and childcare support, appealing to various age groups. The government has indicated that individuals will need to take increasing responsibility for their own health and wellbeing, supported by technology.
- In detail
The government has committed to launching an independent review into the role of UK employers in promoting health and inclusive workplaces, considering what more can be done to enable employers to increase the recruitment and retention of disabled people, support those who become unwell at work and promote good, healthy workplaces; and undertaking early intervention on sickness absence to increase returns to work.
The review will run until next summer and the government has stated that it will involve "wide-ranging" engagement with employers, employees, trade unions, health experts and disabled people and those with health conditions.
- Impact
- Employers should anticipate managing an increasingly diverse workforce with potentially a greater number of ill health issues.
