What Is a Flexible Working Arrangement? Legal Considerations for UK Businesses

In today’s fast-changing workplace, requests for flexible working have become more common than ever. Whether it’s remote work, flexitime, compressed hours, or job sharing, both employees and employers are asking: what is a flexible working arrangement, and what does it mean for your legal responsibilities?

If you run a business in the UK - or you’re just about to hire your first employee - understanding flexible working is essential. Not only can flexible policies help you attract and keep talent, but there are also important legal rules you need to follow.

Don’t worry if you’re a bit unsure; we’ll walk you through what flexible working means, how the law has changed, and the key steps you should take to stay compliant and support your team. Ready to master the legal side of flexible working? Let’s get started.

What Is a Flexible Working Arrangement?

Let’s start with the basics: what is a flexible working arrangement? Simply put, flexible working is any working pattern that differs from the traditional 9-5, Monday-to-Friday routine. These arrangements let employees adjust where, when, or how they work to better suit personal needs - all while getting the job done.

Common examples include:

• Working from home (remote work): Employees work part or all of their week away from the main workplace.
• Flexitime: Employees choose when to start/end their working day, within agreed limits.
• Part-time work: Fewer working hours than the standard full-time week.
• Compressed hours: Working the same number of hours but over fewer days (e.g., a four-day week).
• Job sharing: Two people split the duties of one full-time job.
• Annualised hours: Total work hours spread unevenly across the year.

While flexible working can mean different things depending on your industry and team, the purpose is always the same: to support work-life balance without losing productivity.

Why Does Flexible Working Matter for UK Businesses?

Flexible working isn’t just a nice benefit - it’s become a legal right for most employees. The government sees workplace flexibility as a key part of building fair and modern workplaces.

For business owners, flexible working has a big impact on:

• Recruitment: Loads of job seekers expect flexible options; offering them can give you a hiring edge.
• Retention: Employees are more likely to stay if they feel trusted to manage their work and life.
• Legal risk: Mishandling flexible working requests can land you in legal hot water, including tribunal claims for discrimination or unfair dismissal.
• Business resilience: During unforeseen events (like strikes or public health emergencies), flexible working is often what keeps the wheels turning.

It’s not just about being kind - it makes sound business sense too.

What Are the Key Flexible Working Laws in the UK?

The right to request flexible working isn’t new - but the rules have evolved in 2024. Here’s a quick rundown of the essentials:

• Employment Rights Act 1996 (as amended): This law grants eligible employees the right to request flexible working after 26 weeks’ service. In April 2024, the right to request became a “day one” right - so new hires can request flexible working from their first day.
• Flexible Working (Amendment) Regulations 2023: These regulations recently updated several key rules around how requests are made and processed. We cover them in detail below.
• Equality Act 2010: Refusing flexible working can risk indirect discrimination, especially for parents, carers, disabled staff, or others with protected characteristics.

What does this mean for you? You’re legally obliged to consider flexible working requests reasonably, follow a set decision process, and avoid discrimination.

If you want to dive deeper into the new rules and action points, check out our full guide on the 2024 flexible working reforms.

How Do You Manage Flexible Working Requests? The Legal Process Explained

So, what happens when someone on your team asks for flexible working? Here’s a step-by-step rundown of what UK law expects from you as an employer:

1. The Employee Submits a Request
   The employee must submit their request in writing, setting out the change they want and when they’d like it to start. They can now make two requests each year (up from one).
2. You Must Consider It Fairly
   You’re legally required to review the request “in a reasonable manner.” That means you must consider the benefits and any possible business impact, not just reject it out of hand.
3. Meet to Discuss (If Needed)
   If the change isn’t straightforward, arrange a meeting to talk it through. This shows you’ve seriously considered the request.
4. Make a Decision in Good Time
   You must give a decision within two months of the request (unless both sides agree to extend). If you approve, confirm in writing and update the employment contract as needed.
5. If You Say No, Give a Valid Reason
   You can only refuse for one of eight reasons set out by law - like extra cost, impact on quality, inability to recruit cover, or negative effect on customer service. Be clear and transparent about your reasoning.
6. Employee Can Appeal
   While appeals aren’t legally compulsory anymore, employers are encouraged to allow an appeal. A quick, fair appeal process can help avoid disputes or legal claims.

Don’t forget: mishandling these steps could amount to a breach of the Employment Rights Act and risk claims for constructive dismissal or discrimination.

What Are Your Duties Regarding Discrimination and Equality?

This is a big area often overlooked. Under the Equality Act 2010, refusing flexible working requests may be seen as indirect discrimination - especially if a group of people (like women or carers) are disadvantaged by your decision.

You must apply your flexible working policies fairly and objectively. If you can’t accommodate a request, show strong evidence that it would cause genuine business difficulty. Blanket refusals or outdated attitudes (“we’ve always done it this way”) can expose you to tribunal claims.

Make sure your employee handbook and policies reflect a modern, inclusive approach to flexible working - and review them whenever the law changes. You can read more about writing effective absence from work and adaptable policies to help support your team.

Do You Need to Update Employee Contracts for Flexible Working?

Yes - if you approve a flexible working request, it changes the employee’s terms and conditions. It’s your responsibility to make sure the employment contract matches the new pattern. This protects both you and the employee by avoiding unclear or disputed arrangements.

Your updated contract should cover:

• The new working hours or days (including any agreed remote work basis).
• Any impacts on pay, benefits, or holiday.
• Notice period for changing back (if agreed).
• Review date for the flexible arrangement (if you want to build in regular reviews).

It’s crucial to have properly written contracts and not rely on informal promises or emails. If you’re unsure how to update or change an employment contract, we highly recommend getting a legal expert’s advice.

You can also find out more about hiring your first employee and drafting contracts here.

What Are the Risks of Getting Flexible Working Wrong?

It’s easy to dismiss flexible working as “just an HR issue” - but getting it wrong can have real consequences for your business, including:

• Employment tribunal claims for failing to follow the correct process or acting unreasonably.
• Indirect discrimination claims under the Equality Act (often much costlier than you might expect).
• Poor staff morale, bad reviews and damage to your reputation as an employer.
• Unclear or unwritten changes causing disputes later (especially if business needs change).

If you’re ever uncertain about tricky requests, it’s wise to seek advice on reviewing your employment contracts and internal processes before you respond.

What Is a Flexible Working Policy, and Do You Need One?

A flexible working policy sets out how your business approaches flexibility, who can request it, how to apply, and the steps you’ll follow. While it’s not legally essential, having a clear, up-to-date policy:

• Makes sure everyone knows the rules and process.
• Helps managers respond consistently and fairly.
• Encourages employees to use the correct procedure (and not just assume they can work remotely on a whim).
• Protects your business if a request is later disputed.

It’s best to review your flexible working policy after any legal change - such as the April 2024 reforms - and every time you update your employee handbook or employment contracts. If you’re starting from scratch or want to make sure your policy is still compliant, chat to us for help tailoring your documents to your needs.

Are There Specific Rules for Different Flexible Working Patterns?

Absolutely. Each pattern of flexible working comes with specific practical, legal, and health and safety risks. Here are a few examples to consider:

• Remote work/home working: You must assess and record health and safety risks at the employee’s home (even if it’s a hybrid pattern).
• Compressed or annualised hours: Watch out for Working Time Regulations (limits on weekly hours and minimum rest breaks).
• Job sharing: Clear agreements on how duties, pay, and holidays are shared are vital to prevent disputes.

It can be useful to review our guide to core employment laws for UK businesses or get in touch for advice about risk areas specific to your industry and roles.

Legal Best Practices for Managing Flexible Working in Your Business

Now you know what is a flexible working arrangement - but how do you put that knowledge into practice and avoid legal trouble? Here are our key recommendations:

• Have a clear policy explaining how requests should be made and handled.
• Keep written records of requests, meetings, and your decision process in case of challenges.
• Update employment contracts (ideally with a formal amendment) whenever a permanent change is agreed.
• Train your managers so they understand the law and handle requests fairly and promptly.
• Stay alert for discrimination risks, and always consider adjustments if an employee is disabled or has caring responsibilities.
• Review your policy and approach regularly, especially after legal changes or internal issues.

It can feel like a lot to juggle - but setting up strong, legally-sound systems from the start makes life easier for you and your team. If any part of the process is unclear, it’s safer to ask for professional guidance before things go off track.

Key Takeaways

• Flexible working arrangements (including home working, flexitime, compressed hours and more) are a legal right for most UK employees from day one of employment.
• Employers must consider requests reasonably, follow a set process and only refuse for permissible business reasons.
• Refusing requests without proper justification or unequal treatment can lead to discrimination or unfair dismissal claims.
• If agreed, flexible working changes must be documented with a contract variation to avoid confusion or future disputes.
• Having a modern flexible working policy and updated employee handbook is best practice for UK businesses of all sizes.
• Each type of flexible working has unique legal considerations - from health and safety to compliance with working time laws.
• Getting tailored legal support can help you avoid costly pitfalls and confidently manage flexibility as your business grows.

If you need help drafting flexible working policies, updating your contracts, or just want tailored guidance about what is a flexible working arrangement in practice, our friendly legal team is here to help. Get in touch at 08081347754 or team@sprintlaw.co.uk for a free, no-obligation chat about your needs.