Flexible Working Hours In The UK: Employer Legal Guide

Flexible working hours can be a genuine win-win for small businesses.

Done well, flexible working arrangements help you retain great people, reduce absenteeism, support productivity, and make hiring easier (especially if you’re competing with bigger employers on salary).

But “flexible” doesn’t mean informal. If you’re offering flexible working hours (or handling requests for them), you’ll want to set clear rules, comply with employment law, and protect your business from avoidable disputes.

In this guide, we’ll walk you through what flexible working hours really mean in the UK, what the law expects from employers, and how you can implement flexible working arrangements in a practical, legally sensible way.

What Are Flexible Working Hours (And What Counts As A Flexible Working Arrangement)?

Flexible working hours usually means an employee doesn’t work a rigid “9 to 5” pattern. Instead, their start and finish times, days of work, or overall working pattern can vary, so long as they still meet the requirements of their role.

In practice, flexible working arrangements can include:

• Flexitime (employees can vary start/finish times, often with “core hours” they must work)
• Compressed hours (e.g. 37.5 hours across 4 days instead of 5)
• Part-time hours (fewer hours than a full-time role)
• Staggered shifts (e.g. different team members start at different times)
• Remote or hybrid working (working from home some or all of the time)
• Job sharing (two people share one full-time role)
• Annualised hours (total annual hours are fixed, but weekly hours can flex)
• Term-time working (working patterns aligned to school terms)
• Shift swaps (where permitted, staff can swap shifts with approval)

From a small business perspective, the key isn’t the label - it’s being clear about:

• what hours you actually need covered for the business to run;
• what flexibility is genuinely workable for the role;
• how you’ll manage handovers, customer response times, and oversight; and
• how the arrangement will be recorded and managed going forward.

Flexible working hours are often implemented informally at first (“just start earlier if you like”), but that’s where businesses can get caught out. If a working pattern becomes established over time, it can become difficult to change without creating contractual risk.

What Does UK Law Say About Flexible Working Requests?

Flexible working isn’t just a “nice-to-have” perk anymore - it’s a formal legal process you need to handle properly.

In the UK, eligible employees have a statutory right to request flexible working. It’s important to note what this actually means: it’s a right to request flexible working, not an automatic right to have the request approved.

Even so, employers must deal with flexible working requests in a reasonable manner and within the applicable timeframe.

Who Can Make A Flexible Working Request?

Since April 2024, employees in Great Britain generally have the right to make a statutory flexible working request from day one of employment.

Employees can also typically make up to two statutory flexible working requests in any 12-month period.

Even where an employee is not making a statutory request (or doesn’t meet the legal criteria in a specific situation), they can still ask informally - and you’ll often want to treat it seriously anyway for employee relations and retention.

What Must A Flexible Working Request Include?

Typically, a statutory flexible working request should:

• be in writing;
• set out what change is being requested (e.g. hours, days, location);
• state when they want it to start; and
• confirm it’s a statutory flexible working request.

Since April 2024, employees generally do not have to explain what impact the change might have on your business or how that impact could be dealt with (though some employees may still include this, and it can be helpful if they do).

In real life, requests aren’t always neatly drafted, especially in small businesses. If you get a request that’s incomplete or informal, it’s often best to reply and clarify what they’re asking for, rather than ignoring it.

Can You Refuse A Flexible Working Request?

Yes - but you need to refuse it lawfully and carefully.

There are specific business reasons that can justify refusal (for example, you can’t meet customer demand, it would create a significant cost burden, you can’t reorganise work among existing staff, or performance/quality would suffer).

Since April 2024, you should also consult with the employee before refusing a statutory flexible working request (for example, to discuss the request and explore alternatives).

The bigger risk isn’t refusal itself - it’s refusing:

• without a proper process;
• without evidence;
• without considering alternatives; or
• in a way that indirectly discriminates (more on that below).

Employers generally need to make a decision (including any appeal, if you offer one) within two months of receiving a statutory request, unless you agree a longer period with the employee.

If you’re agreeing flexible working, it’s often sensible to document the updated terms clearly in an Employment Contract (or an appropriate variation letter) so everyone understands the new arrangement.

How To Implement Flexible Working Hours In Your Business (Without Losing Control)

Flexible working hours only work when you build a structure around them.

Here’s a practical approach that works well for small businesses that need flexibility and reliability.

1) Decide What “Flexibility” Means For Your Operations

Start with the needs of your business and your customers. Ask:

• What coverage do we need each day (phones, email, site work, client meetings)?
• Are there true “core hours” where everyone needs to overlap?
• Are there peaks and troughs (seasonal work, month-end, weekends)?
• What work can be done asynchronously, and what needs real-time collaboration?

This helps you avoid offering “flexible working hours” in theory, but then having to backtrack later when you realise you still need certain hours covered.

2) Put The Arrangement In Writing (And Keep It Practical)

Even if you’ve got a close-knit team, flexible arrangements should be recorded. Otherwise, you risk confusion about pay, availability, overtime, and performance expectations.

Key items to document include:

• agreed weekly hours (and whether they can vary);
• start/finish times (or bandwidth, e.g. “between 7am and 7pm”);
• core hours (if any);
• breaks and rest periods;
• how changes are requested/approved;
• how you’ll track time (especially for remote work);
• overtime rules (if applicable); and
• whether it’s a temporary trial or a permanent change.

If you’re changing an existing working pattern, treat it as a contract variation - and make sure you have agreement from the employee. If you’re unsure, get advice before you implement changes that could be disputed later.

3) Use A Trial Period Where It Makes Sense

A trial can be a great middle-ground. It lets you test the impact on:

• client service and response times;
• handover quality;
• team collaboration;
• output and deadlines; and
• workload distribution.

If you do use a trial period, be clear about:

• how long it lasts;
• how success will be measured; and
• what happens at the end (confirm, amend, or revert).

4) Update Policies So Everyone Is Treated Consistently

Consistency is crucial. If one person gets a “special deal” without a clear rationale, you can quickly end up with morale issues (or legal complaints).

Many small businesses set flexible working expectations through policies within a staff handbook or workplace rules. Where you’re tracking device use, communications, or working time, you may also want an Acceptable Use Policy to set clear boundaries and protect your business systems.

Key Legal Risks For Employers (And How To Avoid Them)

Flexible working hours can create legal risk when they’re introduced casually and managed inconsistently.

Here are some of the big legal issues to keep in mind.

Changing Hours Can Be A Contract Variation

If an employee has contractual hours (for example, 9am–5:30pm Monday to Friday), changing that is not just a “manager decision”. It’s usually a variation of contract terms.

That means you generally need:

• the employee’s agreement; and
• the change documented clearly (even if it’s “temporary”).

If you impose a change without agreement, you could face claims (depending on the facts) such as breach of contract or constructive dismissal.

If you’re managing broader changes across the business (e.g. shifting to new shift patterns), you’ll want to think carefully about consultation and how you communicate changes. Handling this incorrectly can create significant legal and culture issues very quickly.

Discrimination Risks (Indirect Discrimination Is A Common Trap)

Flexible working requests often relate to childcare, disability, health conditions, or religious commitments.

If you refuse a request (or apply a rigid policy), you could inadvertently create an indirect discrimination risk. For example:

• insisting everyone must work fixed late shifts could disproportionately impact employees with childcare responsibilities (which may be linked to sex discrimination risks);
• refusing home working with no genuine assessment could impact some disabled employees who may need adjustments; or
• requiring certain days could impact religious observance depending on the role and the requirement.

This doesn’t mean you must accept every request. It means you should be prepared to explain why an arrangement won’t work and show you considered alternatives.

Working Time Rules Still Apply

Even with flexible working arrangements, you still need to comply with the Working Time Regulations 1998 (unless an exception applies).

Common pressure points for small businesses include:

• rest breaks (e.g. if staff work long shifts);
• daily and weekly rest requirements;
• night work rules if flexibility involves late-night patterns; and
• maximum weekly working time (average 48 hours) unless the employee has opted out.

Flexible working hours can make it harder to spot when someone is consistently working too much, particularly in remote roles. That’s why tracking hours (even lightly) matters.

Pay, Overtime, And Holiday Entitlements Can Get Messy

Where hours vary, you need a reliable way to calculate pay, overtime, and holiday.

Some practical steps that help:

• define what counts as “overtime” (and whether it needs approval);
• be clear whether staff are salaried or hourly, and how pay is calculated if hours change;
• confirm how holiday is booked when someone works compressed or irregular days; and
• make sure holiday records match actual working patterns.

It’s often worth checking that your holiday wording is clear, particularly if your business offers holiday “inclusive of bank holidays”. If you use this phrasing in contracts, ensure you understand what it means operationally and legally (and apply it consistently across the team).

Data Protection And Privacy Issues (Especially With Remote Work)

Flexible working arrangements often go hand-in-hand with remote or hybrid work - which can affect how staff handle personal data and confidential information.

If employees access personal data from home (customer lists, client files, patient details, payroll), you should ensure you’re meeting UK GDPR and Data Protection Act 2018 standards. In practice, that means thinking about:

• device security (passwords, encryption, secure Wi-Fi);
• where data is stored and shared;
• access permissions;
• confidentiality expectations; and
• what happens when an employee leaves.

If your business collects or uses personal data, it’s also important your external-facing documents are in place, such as a Privacy Policy.

What Should Your Flexible Working Policy Include?

A flexible working policy doesn’t need to be complicated. The aim is to set expectations, explain the process, and protect consistency across the team.

Here are clauses and sections we commonly recommend including (tailored to your business and industry):

Eligibility And How Requests Are Made

• Who can request flexible working arrangements
• How requests should be submitted (and to whom)
• What information should be included

Decision-Making Process

• Meeting/consultation process
• Timescales for response
• Right to be accompanied (if you offer it as a best practice step)
• Appeal process (often sensible even if not strictly required in every case)

Types Of Flexible Working Hours Your Business Can Support

• Examples that are workable for your operations (flexitime, compressed hours, hybrid, etc.)
• Any role-based limitations (e.g. site-based roles must be on-site during certain hours)

Core Working Requirements

• Core hours (if applicable)
• Required meetings or overlap times
• Response time expectations (phones, email, client messages)
• Rules around availability calendars and handovers

Trial Periods And Reviews

• When a trial period may apply
• How performance will be assessed
• When the arrangement will be reviewed

Time Recording, Pay, And Overtime

• How hours will be tracked
• Overtime approval requirements
• Any impact on salary/benefits where hours reduce

And importantly: if you agree a permanent change, record it properly in your contract documentation. Having a clear Staff Handbook alongside well-drafted employment contracts can make flexible working far easier to manage in the long run.

Key Takeaways

• Flexible working hours can improve retention, productivity, and hiring outcomes for small businesses, but they still need structure and clear rules.
• In the UK, employees can generally make a statutory flexible working request from day one, and can usually make up to two requests in a 12-month period.
• You should handle requests through a fair, reasonable process, consult with the employee before refusing, and respond within two months unless an extension is agreed.
• Changing working hours is often a contract variation, so you’ll typically need employee agreement and written confirmation of the new terms.
• Flexible working arrangements can create discrimination risk if refusals or policies disproportionately impact employees with protected characteristics, so document your reasoning and consider alternatives.
• Working time rules, pay calculations, holiday entitlement, and data protection obligations still apply even when hours are flexible (and can become harder to manage without good documentation).
• A tailored flexible working policy and clear contracts help you stay consistent, reduce disputes, and keep your business protected from day one.

If you’d like help setting up flexible working hours properly, updating contracts, or putting a flexible working policy in place, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.