Flexible working is back in the spotlight.
On 15 September 2026, the Government published its response to its consultation on improving access to flexible working, giving employers more clarity about how the rules are expected to change.
GOV.UK – Make Work Pay: improving access to flexible working
Some of the legal changes will not take effect until 2027, but this is not something employers need to put on next year’s to do list and forget about.
The September update gives us a much clearer picture of the direction of travel. The Government wants more flexible working requests that are reasonable and feasible to be accepted, while still recognising that employers need to be able to manage their businesses effectively.
For SMEs, there is an important balance here.
This is not about saying yes to every request.
It is about making sure that before saying no, employers have properly considered the request, spoken to the employee and explored whether there is another arrangement that could work.
At Craven, we think there is a simple question that captures that approach.
Before you say no, ask: “What could work?”
What did the Government announce in September 2026?
The Government’s response, published on 15 September 2026, follows a consultation launched earlier this year on improving access to flexible working.
The consultation received more than 1,000 responses from individuals, employers, trade unions, legal organisations, academics and representative organisations.
The Government has confirmed that it is progressing changes designed to make it more likely that flexible working requests are accepted where they are reasonable and feasible.
One of the most significant changes will be a new reasonableness test.
Once the new rules come into force in 2027, an employer who decides to reject a statutory flexible working request will still need to rely on one or more of the existing eight statutory business reasons.
But there will be an important additional requirement.
The employer will also need to explain why refusing that particular request is reasonable.
There will also be a more clearly defined process for consulting with an employee where their request cannot immediately be agreed.
The detailed guidance is still developing, so employers should be careful not to treat the future requirements as though they are already in force.
What we do know is the direction in which the law is moving.
And it puts even greater importance on the quality of the conversation that happens before a decision is made.
What are the flexible working rules now?
It is important to separate the September announcement from the law employers need to follow today.
Employees already have a statutory right to request flexible working from their first day of employment.
Flexible working is also much broader than working from home.
An employee might ask to change:
- the number of hours they work
- when they start or finish work
- the days they work
- where they work
- their overall working pattern
This could include part time working, flexitime, compressed hours, term time working, hybrid working or remote working.
Under the current rules, employers must accept a statutory flexible working request unless there is a genuine business reason not to.
If an employer is considering refusing a request, they must consult with the employee before making the decision, unless the request is being accepted in full.
The whole process, including any appeal, should normally be completed within two months.
Employers must also handle requests fairly and reasonably.
Can an employer still refuse a flexible working request?
Yes.
That is not disappearing.
There are currently eight statutory business reasons that can be used to refuse a flexible working request.
These include:
- the burden of additional costs
- an inability to reorganise work among existing staff
- an inability to recruit additional staff
- a detrimental impact on quality
- a detrimental impact on performance
- a detrimental effect on the ability to meet customer demand
- insufficient work during the periods the employee proposes to work
- planned structural changes
Those grounds will remain.
The significant change coming in 2027 is that employers will also need to be able to explain why refusing the particular request is reasonable.
That is an important distinction.
A business reason should not simply become a phrase copied into a refusal letter.
Employers need to understand the actual impact of the proposed arrangement on their business.
What does “reasonable” mean for an SME?
This is likely to be one of the biggest questions for employers.
Flexible working does not mean that every role can be performed flexibly in every way.
Some roles simply cannot be carried out from home. A role may require someone to operate machinery, work on a construction site, provide a face to face service, supervise a workplace, handle physical stock or be present for customers.
Equally, a small business may have limited capacity to accommodate particular working patterns. There may be only one person who performs a particular function, customer coverage might be essential at certain times, other employees may already work flexible patterns, or additional cover could create a cost the business genuinely cannot absorb.
Those are legitimate practical considerations.
The important point is that flexible working is much broader than homeworking.
If homeworking is not possible for a particular role, that does not necessarily mean there is no flexibility to explore. Different start and finish times, working days, hours, compressed hours or another arrangement might be worth discussing.
And sometimes, after properly considering the request and possible alternatives, there simply may not be a workable option.
That does not mean the employer has failed to be flexible. What matters is that the request has been properly considered and the decision is based on the genuine requirements of the role and the business.
That is why we think “What could work?” is such a useful management question.
It does not promise an outcome.
It opens a conversation.
What could work in practice?
Imagine an employee asks to work from home three days each week.
For their particular role, that creates a genuine operational difficulty. Perhaps customers need someone on site, the rest of the team is already stretched or elements of the role simply cannot be carried out effectively from home.
The answer to three days at home might therefore be no.
But does the conversation have to end there?
Could one day at home work?
Could different start and finish times help?
Could the employee change their working days?
Could compressed hours be considered?
Could part of the request work even if the whole request cannot?
Could an alternative arrangement be tried for a limited period?
There may still be occasions when none of those options is practical.
That is okay.
Exploring an option does not mean an employer has to agree to it.
It means the eventual decision is based on what has actually been considered rather than an assumption about what will or will not work.
Could a trial period help?
For SMEs in particular, a trial period can sometimes provide a sensible middle ground.
An employer may genuinely be unsure whether a proposed arrangement will work.
Rather than trying to predict the answer, it may be possible to test an arrangement for an agreed period and then review it.
You might consider things such as:
- customer service
- team coverage
- communication
- workload
- performance
- impact on colleagues
- whether the arrangement is achieving what both parties expected
A trial should have clear parameters.
What is being trialled?
When will it start?
How long will it last?
What will success look like?
When will it be reviewed?
What happens at the end of the trial?
A trial period will not be appropriate in every situation, but it can sometimes turn “we don’t think this will work” into an evidence based decision.
“If I agree to one request, won’t I have to agree to everyone else’s?”
This is a common concern for business owners and managers.
The answer is no.
Flexible working requests should be considered on their individual circumstances.
Two employees might ask for exactly the same working arrangement but perform completely different roles.
One arrangement might be relatively easy to accommodate while another could have a significant impact on customers, staffing or service delivery.
Circumstances within a business can also change.
What a business can accommodate today may be different from what it could accommodate previously.
Consistency does not mean everybody must receive exactly the same outcome.
It means having a fair and consistent process for reaching that outcome.
Understand the request.
Consider the individual circumstances.
Look at the practical impact.
Explore alternatives where appropriate.
Make a reasoned decision.
Record how you reached it.
What happens if an employer gets it wrong?
This is another reason employers should start thinking about the quality of their decision making now.
Under the new reasonableness test coming in 2027, an employee who believes their flexible working request has been unreasonably rejected could bring a claim to an Employment Tribunal.
A tribunal will be able to consider the employer’s explanation for its decision.
If the tribunal finds in favour of the employee, it could require the employer to reconsider the request and award compensation of up to eight weeks’ pay, subject to the applicable statutory limit.
This does not mean employers should become frightened of refusing requests.
It means employers should be able to demonstrate how they reached their decision.
What did you consider?
What did you discuss with the employee?
What operational concerns were identified?
Were alternatives explored?
Why was the final decision reasonable?
Good notes and clear reasoning are going to matter.
Do not forget reasonable adjustments and discrimination
Sometimes what looks like a straightforward flexible working request may have another issue sitting behind it.
An employee might be asking for a change connected to disability, pregnancy, religion or belief, sex or caring responsibilities.
Equality considerations may therefore arise.
Where disability is involved, the employer may also have a separate legal duty to consider reasonable adjustments.
This is important because a flexible working request and a request for a reasonable adjustment are not necessarily the same thing.
Managers therefore need to understand what sits behind the request without turning the conversation into an interrogation.
If a request raises wider equality or reasonable adjustment considerations, take advice before making the decision.
Your policy matters, but your managers matter more
You can have an excellent flexible working policy sitting in your employee handbook.
The real test comes when somebody says:
“Can I talk to you about changing my hours?”
What happens next?
Does the manager immediately think about all the reasons it cannot work?
Do they worry that agreeing will set a precedent?
Do they give an answer before properly considering the request?
Or do they ask questions, listen and understand what the employee is trying to achieve?
The current Acas Code already says that the starting position should be to consider what may be possible. It encourages meetings to be approached with an open mind and alternative solutions to be explored if the original request cannot be accepted.
For SMEs, that makes manager confidence particularly important.
Most small businesses do not have an HR professional sitting alongside every manager.
Managers need to understand enough to know when to have the conversation, what questions to ask, what they should record and when they need further advice.
What should UK employers and SMEs do now?
The new reasonableness test is not yet in force.
There is no need to start applying future legislation as though it were already law.
But there is plenty employers can sensibly do now.
Review your current flexible working policy and make sure it reflects today’s law.
Check that managers understand the existing day one right to request flexible working.
Make sure flexible working is not automatically treated as another name for working from home.
Look at how requests are currently discussed, considered and recorded.
Encourage managers to explore alternatives where the original request cannot be accommodated.
Consider whether a trial period could help in appropriate circumstances.
Make sure decisions are based on facts and the individual request rather than assumptions about flexible working generally.
Help managers recognise when reasonable adjustments or discrimination considerations might also be relevant.
Make sure there is a clear record of the conversation and how the eventual decision was reached.
And perhaps most importantly, help managers become comfortable having the conversation.
Frequently asked questions about flexible working
Can an employee request flexible working from day one?
Yes.
Employees currently have a statutory right to request flexible working from their first day of employment.
Can an employer refuse a flexible working request?
Yes.
Under the current rules, an employer can refuse a statutory request where there is a genuine business reason that falls within one or more of the eight reasons set out in legislation.
The law is changing in 2027 so that employers rejecting requests will also need to explain why they believe the refusal is reasonable.
Do employers have to accept every flexible working request?
No.
The forthcoming reforms do not mean every request will automatically have to be accepted.
The Government’s intention is that statutory requests that are reasonable and feasible should be accepted, while employers will still be able to refuse requests that cannot reasonably be accommodated.
Is flexible working just working from home?
No.
Flexible working can involve changes to hours, start and finish times, working days, working patterns and where somebody works.
When are the flexible working rules changing?
The new reasonableness test and new consultation requirements are due to come into force in 2027.
As at September 2026, further detail and guidance are still to come.
Employers should therefore continue following the current law and Acas Code while preparing for the changes ahead.
Should SMEs change their flexible working policies now?
Employers should make sure their policies comply with current law now.
There is also value in reviewing how requests are handled in practice and making sure managers are ready for the direction of the forthcoming changes.
Policies can then be updated again when the final implementation detail and guidance are available.
Flexible working is changing, but good conversations do not need to wait
The Government’s September 2026 update gives employers a much clearer indication of what is coming.
But perhaps the most useful lesson for SMEs is not simply a legal one.
It is a management one.
A flexible working request does not have to begin with:
“Can we say no?”
It can begin with:
“What could work?”
Sometimes the employee’s original request will work.
Sometimes a different arrangement will work.
Sometimes, for genuine business reasons, nothing workable can be found and the request may need to be refused.
All of those can be legitimate outcomes.
What matters is having a proper conversation, considering the individual circumstances and being able to explain how you reached your decision.
That is good people management now and it will put businesses in a stronger position for the changes ahead.
Need support with flexible working?
Craven Consultancy Services supports UK SMEs with practical, straightforward People and HR advice.
Whether you need help reviewing your flexible working policy, supporting managers to handle requests confidently, working through a difficult individual request or preparing for forthcoming employment law changes, our People team can help.
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