The Government’s policy is to make flexible working the default from day-one, with employers required to accommodate this as far as is reasonable (or except where it is not reasonably feasible).
The current law (amended in 2024 – see our article here) gives employees the right to request flexible working rather than a right to have flexible working, and employers have broad business reasons for which they can refuse an individual’s request.
The ERA 2025 builds on the current legal framework, increasing the obligations on employers, and provides for the following:
- An employer may refuse a flexible working request only if:
- The employer considers that the application should be refused on one or more of the eight statutory grounds (which are set to remain the same as the current law); and
- It is reasonable for the employer to refuse the application on that ground (or grounds).
- An employer must explain in their notification of refusal why it considers it reasonable to refuse the application on the statutory ground or grounds (unless the provision of information would be contrary to the interests of national security).
- A new power for the Government to make regulations setting out what steps employers will have to take to comply with the requirement to consult with the employee about their flexible working application.
Despite these changes, the penalty for non-compliance is currently set to remain a maximum of 8 weeks’ pay (currently capped at £751 from 6 April 2026), together with an order for reconsideration.
A consultation on the proposed new consultation process for employers dealing with flexible working requests was launched on 5 February 2026 and closed on 30 April 2026. A Government response was published on 15 September 2026, indicating the Government will proceed with its reforms but with some changes to the original proposals following consultation feedback. In terms of process, full details will be set out in regulations, but the proposed process includes:
- Employers must hold a meeting before rejecting a flexible working request to 1) consider the feasibility of the requested arrangement and address challenges where possible and 2) if the requested arrangement is not feasible, explore any suitable alternative arrangements. The meeting shall be undertaken by the employer with the view to reaching an agreement with the employee.
- Setting up the meeting: The meeting must take place within the two-month period for making a decision. Employers will need to give “fair and reasonable notice” before the meeting, with further guidance promised. The employer should inform employees about the purpose of the meeting in advance.
- During the meeting: The employer must clearly communicate any challenges they identify with the original request and consider potential solutions or mitigations with the employee. If the original request cannot be accommodated, the employer and employee must consider whether there are feasible alternative arrangements.
- After the meeting: Employers will be required to provide a written notification of the outcome of the meeting and the outcome of the request.
Some concerns regarding the rigidity of the original process proposed have been addressed, however, the changes will likely increase the burden of justification on employers to consider and demonstrate the reasonableness of any refusal and are likely to add additional steps for employers to demonstrate compliance with the duty to consult the employee about their application. These enhancements could lead to an increase in claims relating to the refusal of flexible working requests and may make the implementation of whole office mandates increasingly difficult at a time when some employers are pushing for in-person office attendance.
Acas is also consulting on a revised draft Code of Practice on requests for flexible working. The draft Code is more detailed than the existing version and introduces four principles designed to help employers reach “reasonable” decisions:
- Reaching decisions based on evidence
- Adapting where possible to enable a request
- Working together to find solutions
- Acting transparently and consistently
It provides guidance and examples of how employers might apply each of these principles, along with further information including how to consult with employees and dealing with reasonable adjustments. Once the regulations are finalised, Acas have said they will review the draft Code to ensure it accurately reflects the final legal requirements.
Timing and developments
Included in the ERA 2025.
A consultation on the steps an employer must take to comply with the obligation to consult was launched on 5 February 2026 and closed on 30 April 2026 and a Government response was published on 15 September 2026. The consultation indicates that the Government will introduce secondary legislation setting out the process employers must follow before rejecting a statutory flexible working request and to bring the reasonableness test in the ERA 2025 into force. The Government’s updated timeline indicates that these changes will take effect in October 2027.
Acas published a draft update to its Code of Practice on flexible working for public consultation until 17 December 2026 setting out statutory guidance on the requirement to consult and the new reasonableness test with the intention that it takes effect the same time as legislative reforms.