What are the New UK Flexible Working Laws 2024?
In 2024, the UK saw significant changes to flexible working laws. Employees now have the right to request flexible working from their first day of employment, rather than after 26 weeks (part 8A of the Employment Rights Act 1996). They can also make two requests within any 12-month period (previously, this was one). Employers are required to respond to these requests within two months (previously, this was 3 months), and must now consult with the employee before refusing a request, providing a reasonable basis for the refusal and stating the specific grounds for refusal.
These changes aim to make flexible working more accessible and empower employees to better manage their work-life balance.
What Does Flexible Working Mean?
An employee can request a change to:
- the hours that they are required to work;
- the times that they are required to work; and/or
- where, as between their home and the employer's place of business, they are required to work.
The request could, therefore, be for shorter working hours, flexitime, a system of staggered or annualised hours, job sharing, part-time work, self-rostering or permission to work from home.
Any change agreed may be for an indefinite, or defined period, and will be a change to the employee's terms and conditions of employment (unless a trial period is agreed).
How to Manage Flexible Working Requests Under New Legislation
Employees must submit their request in writing, specifying the desired changes, the desired start date and state whether (and, if so, when) a previous flexible working application has been made.
The changes remove the requirement for the employee to state how their request may impact the business as this is no longer legally required.
An employee cannot make a further application if they already have an application in progress.
If an employer is considering rejecting a request, they must consult with the employee to discuss the request and potential alternatives. If not, this can be agreed in full at the outset without consultation.
The new changes also add an element in that the request, or appeal, can be deemed withdrawn if the employee fails to attend the initial meeting and a rescheduled meeting without good reason.
- Reasonable Consideration:
Employers must handle requests in a reasonable manner, in line with the Acas Code of Practice on requests for flexible working.
- Decision and Communication:
The employer must make a decision within two months and communicate it clearly to the employee.
While not a statutory requirement, it's good practice to allow employees to appeal the decision as recommended by the Acas code of practice on requests for flexible working. Any appeal will need to be handled within the same two-month time limit.
Can an Employer Refuse a Flexible Working Request Under New Rules?
Yes, an employer can refuse a flexible working request, but only if you have a genuine business reason for doing so.
Employers can only refuse for one or more of the following business reasons, as outlined in the Employment Rights Act 1996:
- Extra Costs: The change would incur significant extra costs for the business.
- Reorganising Work: It would be impossible to reorganize the work among other staff.
- Recruiting Staff: The business cannot recruit additional staff to cover the changes.
- Detrimental Effect on Quality: The change would negatively impact the quality of work.
- Impact on Performance: The change would negatively affect the business's performance.
- Meeting Customer Demand: The business would be unable to meet customer demand.
- Lack of Work: There is not enough work available during the requested working hours.
- Planned Changes: The business has planned changes that are incompatible with the request.
In essence, the new rules strengthen the right to request flexible working but do not guarantee its approval. Employers retain the right to refuse based on legitimate business needs.
What are the Risks of Rejecting a FWR Request?
While a statutory flexible working application can be refused for one of the above reasons, the rejection of a flexible working request may still be in breach of discrimination legislation. As an example, a refusal without justification to grant a flexible working request, or granting only part of a flexible working request, to a mother on return from maternity leave amounts to indirect sex discrimination (British Airways Plc v Starmer EAT/0306/05 and Thompson v Scancrown Ltd t/a Manors 2021) In the later case, the tribunal reinforced that it’s not necessary to prove malicious intent – what matters is whether a policy or decision disproportionately disadvantages women due to childcare responsibilities, which are still unequally borne. The award exceeded £180,000 covering loss of earnings, injury to feelings and pension loss. This case underscores the financial and reputational risks of mishandling such requests.
Employers should also be aware that, even where they are not under a duty to comply with the statutory procedure because, for example, the employee has made two flexible working requests in the previous 12 months, they may be liable to discrimination claims where they reject non-statutory flexible working requests. Employers should therefore take all flexible working requests seriously.
There is no minimum length of service to bring a discrimination claim and compensation is uncapped.
What are the Key Considerations for Employers?
- Genuine Business Reasons:
Employers can only refuse a request if there's a genuine business reason, such as detrimental impact on performance, cost, or quality.
Having a clear and well-communicated flexible working policy can help manage expectations and ensure consistency.
Keep records of all requests and outcomes for future reference.
Ensure managers are trained on the new legislation and how to handle requests effectively.
How do the Flexible Working Changes Impact Employers?
- Increased Pressure: The new legislation places more pressure on employers to manage requests efficiently.
- Need for Clear Processes: Establishing clear procedures for handling requests is crucial.
- Focus on Consultation: Emphasis on consultation before rejection requires a shift in approach.
Future Developments of Flexible Working
Flexible work to be the ‘default’
On 10 October 2024, the Government presented the Employment Rights Bill to Parliament. In its Next Steps to Make Work Pay policy paper, the Government states that the Bill brings forward policy measures, including "making flexible working the default".
Under the Bill, an employer may refuse a flexible working request on one of the current grounds only if it is reasonable to do so. Further, where the employer refuses a request, the employer must state the grounds for refusing the application and the reasons it considers its refusal reasonable.
These changes aim to support a more inclusive workforce, especially for people with caring responsibilities, health conditions or those seeking better work-life balance.
In its policy paper, the Government states that it expects "to begin consulting on these reforms in 2025, seeking significant input from all stakeholders, and anticipate this meaning that the majority of reforms will take effect no earlier than 2026."
