What is Flexible Working?

The average nine-to-five work pattern isn't suitable for everyone. Many businesses provide flexible working arrangements, where employees have a better say on their weekly work hours.

As of 2024, flexible working changes are set to be implemented by the new Labour government. Their aim is to attain a suitable standard that supports employees’ right to a healthy work-life balance without sacrificing business operations.

Employers must comply with any new and existing legislation relating to flexible work. If not, you could end up facing discrimination claims, losing valuable staff, and causing reputational damage. For more advice, contact one of our expert HR advisors free of charge today.

Let’s look at what flexible working is, who qualifies for it, and what the legal requirements are when introducing the scheme into your workplace.

What is flexible working?

Flexible working is an arrangement that allows a person to change when, where, and how often they work.

When a business offers flexible hours, it can include any number of arrangements. For example, changing the location of work, start/end times, or total number of hours.

Different forms of flexible working arrangements have always existed under current employment law. Since the COVID-19 pandemic, businesses heavily invested in hybrid and remote working. They sought a functional route to meeting targets regardless of whether their employees worked inside or outside of their workplace.

What is the law on flexible working?

From the 6th of April 2024, the government passed new flexible working legislation and statutory codes. Some of these include:

• The Employment Relations (Flexible Working) Act 2023.
• The Flexible Working (Amendment) Regulations 2023.
• ACAS’s Code of Conduct on Request for Flexible Working.

Right to request

All employees can apply for flexible working from the first day of their job. This is known as ‘making a statutory application’.

Previously, this was only applicable to those with caring responsibilities, like employees who were parents. The government then decided to extend this legal right to request flexible working for all employees.

Ask for contractual changes

Employees can present a statutory request to make permanent changes to their contractual terms. (Again, this legal right applies from the first day of their employment).

Under the new legislation, they can ask their employers to change their work conditions. For example, how long they must work for each day, when their start/end is, or whether they’re allowed to work at home instead of their normal workplace.

Number of requests

Employees can now make two requests in any 12-month period. (Again, this legal right applies from the first day of their employment).

Previously, employees were only allowed to raise one request. They were also subject to meeting service year thresholds. This is no longer the case under the new flexible working legislation (as of 2024).

Timely decision

Employers must pass a decision regarding requests within two months of receiving them. If you decide to reject their request for flexible working, you must do so in a ‘reasonable manner’ and consult the employee directly.

Previously, employees would have had to explain how their flexible working arrangements impacts the business and how this would be remedied. This is no longer a requirement.

Instead, employers must provide explanations behind their reasons for rejecting a flexible working request. Their answers must relate to one of eight business rules:

1. Extra costs that will damage the business.
2. Work cannot be reorganised between other staff.
3. People cannot be recruited to do the work.
4. Flexible working will affect quality.
5. Flexible working will affect performance.
6. The business will not be able to meet customer demand.
7. There’s a lack of work to do during the proposed working times.
8. The business is planning changes to the workforce.

What are the advantages of flexible working?

Whilst it might seem like the benefits are appreciated by employees, there are numerous ones that employers can enjoy. Let’s take a look at the benefits of flexible working for employees and employers:

• Save money on utility bills, rent arrears, and office maintenance costs.
• Improve customer service (potential access on a 24/7-hour basis).
• Higher staff retention and job satisfaction rates.
• Reduce absence rates, particularly for staff with health conditions.
• Support staff wellbeing and overall work-life balance.

What are the disadvantages of flexible working?

Whilst the benefits are many, employers shouldn't ignore the downsides. Let’s take a look at the disadvantages of flexible working:

• Unable to form solid work relations due to limited time together.
• Output and productivity levels will vary from worker to worker.
• Limited guidance during hybrid or remote work.
• Blurred the line between work and personal life.

Download our free flexible working policy template, so you can successfully manage flexible working in your business.

Are there different examples of flexible work arrangements?

Flexible working consists of all kinds of arrangements. Some different examples outlined under the new legislation include:

Job sharing

This is when two (or more) people share one job and split their working hours. For example, two people share day and night responsibilities for a hotel manager job.

Remote working

This is when an employee completes their work duties outside of their normal workplace. For example, a salesperson travelling around the country to sell products.

Hybrid working

This is when an employee completes their work duties inside and outside of their normal workplace. For example, an employee works in the office for three days a week and work from home for the remaining days.

Part-time working

This is when an employee works less hours than their full-time colleague. For example, a part-time employee works two days a week instead of the traditional five.

Compressed hours

This is when an employee completes all their normal work hours over a shorter period. For example, a full-time employee completes their 40 weekly work hours per week within four days.

Flexitime (or flexi-working)

This is when an employee is allowed to choose when they start or end their work hours (within reason). For example, an employee starts at 10am and finishes at 4pm, instead of their usually 9-5 routine.

Annualised hours

This is when an employee works a certain number of work hours annually but has flexibility on when they work. For example, a truck driver will work all year round so they can work less during the winter season.

Staggered hours

Staggered hours are when an employee has a different start, finish and break times compared to other workers. For example, an employee works between 10-6pm to avoid commuting during busy hours.

Predicted or set-shift hours

This is when an employee has set weekly work hours that aren’t subject to change. For example, a new employee is contractually obliged to work from 9-5 every day.

Phased retirement

This is when an employee works less hours than before due to reaching their retirement. For example, an older employee switches to part-time work until he plans to retire from his job.

How to manage a flexible working request

Flexible working is an arrangement that allows a person to change when, where, and how often they work. Many businesses allow hybrid and remote working to encourage a healthier work-life balance for their staff.

The current government has passed new flexible working rules for 2024. This includes a number of original and amended legislation set to pass before the end of the year. A lack of compliance could result in tribunal claims, compensation fines, and reputational damages.

For more advice, contact one of our expert HR advisors free of charge today. Stay compliant with our free flexible working policy template, download yours now.

Let’s take a look at how employers can manage a flexible working request raised by their staff:

Addressing the request

The first step employers should take is addressing the flexible work request raised to them. This should be sent in written form either by letter or email. The request must include:

• The date of the request.
• A declaration stating this is a statutory request for flexible working.
• Details on how and when they want to work flexible hours.
• A statement saying whether previous applications have been made (including dates).

In some cases, an employee may decide to withdraw their application for personal reasons. Here, they’ll should inform you about their decision in writing. Employers must then decide whether to treat their original request as a withdrawal request or not.

Schedule a consultation

Next, employers should invite the employee requesting flexible working to a consultation meeting. Here, both parties can express their reasons fairly. Employers must only pass their final decision through a ‘reasonable manner’ after:

• Assessing the advantages and disadvantages of the application.
• Discussing possible alternatives to the request.
• Offering an appeal process.

Reply within the timeframe

Employers must make their decision within two months of receiving the flexible working request. (It can take longer if the employee in question agrees to this).

If you accept the employee’s request for flexible working, express your decision in writing through an outcome letter. The letter should include:

• A statement of the agreed working changes.
• A date for when flexible working will initiate.

The letter should also outline any new terms and conditions related to their job. They should be added to their employment contract. Ideally, this should be done as soon as possible or within one month of approving their request.

Deal with refusals

If you decide to refuse their flexible working request, this decision must cover one (or more) of eight legitimate business reasons:

1. The extra costs that could harm the business.
2. The work cannot be reorganised between other staff.
3. People cannot be recruited to do the work.
4. Flexible working will affect quality.
5. Flexible working will affect performance.
6. The business will not be able to meet customer demand.
7. There’s a lack of work to do during the proposed working hours.
8. The business is planning changes to the workforce.

The refusal decision should be given through an outcome letter clearly stating your legitimate reasons for declining.

Can an employee against a refusal for a flexible working request?

As of 2024, employees still have the right to appeal a refusal outcome for their flexible working request. However, there are talks of the government proposing to change this statutory right.

If the employee is unsatisfied with your internal appeal process, they may raise their issue to an employment tribunal. They could do this because they believe their employer:

• Didn’t handle the request in a reasonable manner.
• Wrongly treated their request as being withdrawn.
• Dismissed or discriminated against them due to raising a request.
• Refused the request based on incorrect facts.

It’s important to note that employees cannot complain to an employment tribunal just because their flexible working request was denied.

Get expert advice on flexible working with Peninsula

With the right steps, flexible working arrangements benefit both businesses and their staff. By complying with the laws, you’ll be able to protect your operations without promoting healthier work-life balances for your staff.

Peninsula offers expert advice on flexible working. We also offer 24-hour HR advice – keeping your business compliant when it comes to changing working conditions. Download our free flexible working policy template, so you can successfully manage flexible working in your business.

Want to find out more? Contact us on 0800 028 2420 and book a free consultation with an HR consultant today.