Flexible Working in the UK: From Optional Benefit to Legal Right

Flexible working is one of the most sought-after employee benefits in the UK. Since flexible working was forced upon us during the global pandemic, this agile approach has reshaped how employees think about work and what they expect from their employer. Indeed, 91% of UK employers currently offer some form of flexible working arrangement. Millennials and Gen Zers are not content with the same benefits that once motivated their grandparents, and young people aged 18-24 are more likely to leave a role due to a lack of flexible working. Gone are the days of the job for life and company car. Today’s job seekers want flexible working patterns, jobs they actively enjoy and that fit in with their lifestyle needs, as well as the opportunity to do good in the world.

What began as a response to the pandemic has evolved into a permanent transformation of UK employment law, strengthened by changes under the 2025 Employment Rights Act. To attract and retain top talent, North West businesses must be alert to what motivates their workforce - and in most sectors that means offering flexible working opportunities. If your business is struggling with managing or implementing a compliant flexible working policy, our HR Consultants are on hand to offer guidance and hands-on support.

In this article, we cover:

• What the right to flexible working means for UK employers

• The evolution of flexible working

• The range of benefits flexible working can bring - to both employees and employers

• The differences between informal and formal approaches to flexible working

• Best practice advice on handling employee requests

• Managing temporary changes to working patterns

• What are the alternatives to flexible working?

• Success stories of flexible working in practice.

If flexible working is an area where your business needs to take action, get in touch here. Our CIPD-accredited HR experts are here to help.

The evolution of flexible working in the UK

The Flexible Working Bill was first introduced to Parliament in June 2021. At this point, UK law stated that employees could only request flexible working after 26 weeks of employment, with requests limited to one per 12 months.

A UK Government consultation in Autumn 2021 gathered views from employees and employers. This feedback set the foundations for flexible working legislation as we know it today. Meanwhile, businesses were already exploring a range of flexible working options.

In December 2022, the government announced plans to make requesting flexible working a right from day one of employment (rather than after 26 weeks), signalling the start of a significant shift in employment law.

A four-day week experiment was conducted in early 2023, with compelling findings:

• 92% of companies pledged to continue the four-day schedule

• Positive impacts on productivity and revenue were documented

• Staff retention improved

• Employee health and wellbeing showed significant enhancements.

Research by the CIPD showed that people without access to flexible working were twice as likely to be dissatisfied in their jobs compared to those with flexible options. Early adopters were already starting to see benefits, including reduced stress and burnout, healthier work-life balance, and declining rates of sickness absence and resignations.

While the early signs were positive, there were still challenges to address. Companies needed to:

• Educate HR teams and senior leaders about flexible working options

• Address resistance from management

• Implement clear policies and processes

• Consider alternatives for roles unsuitable for flexibility.

The Employment Relations (Flexible Working) Act 2023 made flexible working a day-one right for UK employees starting in April 2024. A year later, a CIPD report found 18% of employers reported an increase in flexible working requests. 80% of employees said working flexibly had a positive impact on their quality of life, and one in three believe working flexibly has had a positive impact on their career prospects. The study found that flexible and hybrid working practices had an overwhelmingly positive impact on performance, wellbeing and employee engagement.

In 2025, the Employment Rights Act further strengthened flexible working rights for UK workers. It is planned that, from 2027 (implementation date TBC) employers will be required to consider all flexible working requests and provide a clear reason for refusal. The decision-making process must be carefully recorded and documented to demonstrate that due process has been followed.

Current legislation does not require employers to explain their decision, which has led to a lack of transparency around flexible working decisions and some requests that could be reasonably implemented being turned down.

According to official government policy, “employers who cannot immediately accept a flexible working request will need to follow a new process to discuss ways to overcome problems with the proposed arrangement or potential alternatives. If, after that discussion, they feel they still need to reject the request, they will have to

set out why they feel it is reasonable to do so.”

One of several new employment law measures planned for 2027, businesses must work towards building a culture where flexible working requests are properly considered. The evolution of flexible working in the UK is ongoing and there will be more amendments to come. Our P3 team is here to keep you informed and help you and your business make sense of the changes.

What are the benefits of flexible and hybrid working?

Flexible and hybrid working brings a host of advantages for both organisations and employees, with substantial benefits for parents, carers and people with additional needs.

Benefits for Employees

Improved work-life balance

Flexible working arrangements allow employees to find a better balance between their professional and personal commitments. Examples include:

• Parents have more time to spend with their children and pick them up from school

• Caregivers have the flexibility to share responsibilities with a partner and/or balance their duties with time for themselves

• More time to enjoy personal interests, classes and hobbies.

Mental and physical wellbeing

Flexible working provides significant health and wellbeing benefits, including:

• Reduced stress and burnout

• Improved overall mental health

• Better physical wellbeing through more time for exercise and self-care

• Reduced feelings of pressure and overwhelm.

Financial benefits

Flexible working has distinct financial advantages, such as:

• Reducing the cost and time spent commuting to work

• Reduced childcare expenses

• Spending less on meals and other away-from-home expenses.

Career development and satisfaction

Flexible arrangements support career growth and employee satisfaction through:

• Higher job satisfaction (those without access to flexible working are twice as likely to be dissatisfied at work)

• Ability to pursue side projects or entrepreneurial ventures

• Enhanced skills development through better work-life integration

• A more fluid approach to roles allows individuals to adapt to changing business needs and bridge gaps should a key employee leave.

Empowerment and autonomy

Flexible working gives employees greater control over their working lives by giving them:

• Choice in how, when, and where they work

• Autonomy to adapt their work patterns to personal productivity rhythms

• Trust to organise their own work, enhancing confidence and engagement.

Support for diverse needs

Access to flexible working can support employees with disabilities and specific needs, including:

• Neurodiverse employees who may benefit from adjusted work environments

• Employees with physical or mental health challenges

• Employees recovering from long-term illness

• Employees with personal challenges at home

• Employees approaching retirement.

Organisational and business benefits

As employees discover a healthier work-life balance, businesses may see benefits in the form of:

• Improved productivity and customer service

• Falling absenteeism

• An ability to attract and retain talent from a wider pool

• Reduced recruitment costs

• Increased loyalty and morale

• Openness to innovation and change

• Improved employee-employer relationships

• Greater levels of health and wellbeing

• Reduces carbon footprint and environmental impact

• Improved ability to react to change quickly and effectively.

What’s the difference between formal and informal flexible working?

As flexible working evolves, two clear approaches have emerged. When choosing your approach, listen to your employees and adopt the strategy that works best for everyone. The best option might be a blend of formal and informal.

Formal approaches include:

• Part-time contracts

• Four-day working weeks

• Job sharing agreements

• Term-time contracts

• A structured remote or hybrid working pattern, e.g. three days remote, two in the workplace

• Mandatory workplace attendance for a set number of days/hours per week

• Shift rotation patterns.

Informal options include:

• The ability to swap shifts between colleagues

• Time off in lieu (TOIL)

• Staggered hours, e.g. flexible start and finish times to help employees with caring responsibilities or support recovery from illness

• Flexitime, e.g. choosing your own start and finish times

• Compressed hours, e.g. working longer hours on some days to finish earlier on others.

Organisations need a strong culture of trust for informal approaches to be successful.

Can flexible working solve presenteeism?

Presenteeism is the term used for employees who feel they need to be present at their place of work. It often means that individuals turn up for work when they are feeling ill, anxious or disengaged. Common causes include fears around job security (e.g. during an organisational restructure), workload worries, concerns over how absence will affect pay, or a fear that non-attendance could be perceived as laziness over genuine illness. In reality, presenteeism denies an individual the time they need to recover. It may exacerbate health problems and can lead to burnout.

Presenteeism may also show up as working long hours (starting early and staying late), not taking regular breaks, eating lunch at your desk, or responding to messages outside of working hours to prove your commitment and work ethic.

At the heart of presenteeism are two out-of-date beliefs:

• That leaders associate being present at work with working harder than remote workers.

• That working over and above your contracted hours will lead to recognition and promotion.

The reality is very different. When sick employees present at work, they pass on germs to colleagues resulting in increased absenteeism. When a high number of colleagues are unexpectedly absent their workload has to be shared amongst the team, which negatively impacts morale and performance.

Presenting employees are also more likely to make mistakes affecting the quality and standard of their work. In turn this may affect customer service and risk business reputation. Low morale and illness are equally infectious - the cost of a culture of presenteeism could be much higher than absenteeism.

Offering flexible and hybrid working arrangements may help employees to consider ways to work more effectively and go some way towards preventing presenteeism, illness and burnout. The key is to have clear and well-communicated policies in place to prevent and discourage employees from working from home when they should be taking sickness absence.

Advice on handling flexible working requests

Employees can make a statutory application for flexible working from their first day in role. They must make the request in writing, and you then have up to two months to consider and respond to the request.

If you approve the request, you must amend the employee’s contract terms and conditions.

If you decide to decline the request, you must explain the business reasons for refusal. The employee might well be unhappy with the outcome. If this is the case, they are within their rights to take their request to an employment tribunal.

Despite the potential for escalation, don’t feel pressured into approving every flexible working request you receive. When making your decision, consider wider business needs, such as additional costs and customer impact, as well as the effect on your immediate team. If there are legitimate business reasons why you cannot approve a flexible working request, you must make these abundantly clear before you decline it.

Most day one requests shouldn’t come as a surprise. Employees who are new to role or to the business may have indicated their interest in flexible working during the interview process.

Temporary changes to working patterns

In certain circumstances, employees may only need to access flexible working arrangements on a temporary basis. For example, when a child starts school and the family needs time to adjust, or whilst a relative needs support through medical treatment. A request for a temporary change does not have to follow the formal statutory application procedure and is usually initiated by a conversation between employee and manager.

For short-term, temporary arrangements both parties should agree an end date at which time the employee will return to their usual contracted place and hours of work.

Taking a collaborative approach

Would you involve your team in deciding the outcome of a flexible working request? To be successful in operating flexibly, teams need a high level of trust. Asking your team how they propose to adapt if a colleague were to reduce their hours or work from home can be extremely beneficial. Giving an element of control back to your team boosts trust, strengthens workplace culture, and may reduce pressure on you as a line manager when making the final decision.

What are the alternatives to flexible working?

We understand that flexible working arrangements may not suit every employee, role or organisation. If the nature of your business doesn’t allow for flexibility, you might look to other forms of employee rewards and flexible benefits to compensate.

• A buy/sell holiday scheme gives employees the option to buy additional leave or receive financial compensation for days they don’t need.

• Pay and bonuses are an alternative reward for people who can’t work flexibly or whose roles or workplaces don’t allow for flexible working.

Implementing successful flexible working practices

There is plenty of evidence of successful flexible working out there for us to learn from. If your business is planning to change its approach to flexible working, keep these four points in mind:

1. Communication is crucial. Listen actively to understand employee needs, communicate regularly, and involve staff at every level.

2. Remain adaptable. What works today might not be appropriate in a few months. Consider trial periods and evaluate the outcomes.

3. Invest in leadership training. Managers need specific skills and knowledge to be confident leading hybrid, remote or flexible teams.

4. Provide appropriate tools and equipment. Employees cannot succeed without the right systems and resources they need to perform their job well.

Success Stories: Flexible Working in Practice

Forward-thinking organisations have embraced flexible working, with some remarkable results. The following three case studies provide a flavour of the benefits.

Virgin was way ahead of the flexible working curve

Years before it was written into law, Richard Branson wrote in his blog about two employees who had taken advantage of remote working technology to realise their personal ambitions. One became a published author and the other was able to support his wife while she wrote her book. As Richard says, “It’s archaic to assume that people do their best work at a desk”.

Balancing work and family life

Standard Chartered offers employees a choice of five working options, allowing them to choose between hybrid and flexible hours at home and/or in the office or a fixed agreement. Employee engagement was at the heart of implementation with consultation at every stage of the process. The majority of employees opted for a hybrid approach.

The rollout was a huge success, with employees reporting better work-life balance and higher levels of engagement. Since implementing flexible working, the bank also found it was attracting and retaining more diverse talent, giving them a clear competitive advantage. Take a look at the full case study

Flexibility for carers at Leonardo UK

Aerospace, defence and security giant, Leonardo UK, won an Investors in People Award for its approach to flexible working policy, which helps employees maintain a healthy work-life balance. Their policy has enabled employees to maintain work responsibilities while managing personal circumstances, including caring for ill family members.

The Future of Flexible Working

The journey from optional benefit to legal right reflects changing attitudes towards work-life balance, productivity, and employee wellbeing. Companies that embrace these changes stand to benefit from increased engagement, improved retention, and access to a broader and more diverse talent pool.

Successful flexible working policies require ongoing communication, willingness to adapt, and a foundation of trust between employers and employees. By listening to your employees and implementing thoughtful, inclusive policies, your business can turn this legislative change into a competitive advantage while improving quality of life for your employees.

 Typically, people have three broad goals in their working lives:

1. Equity: to be respected and treated fairly

2. Achievement: to take pride in the job and gain recognition for good performance, and

3. Camaraderie: to have good working relationships.

To maintain morale, productivity and happiness at work, management should meet all three objectives equally. Creating an agile-friendly culture is not just about creating new policies or procedures, it’s about changing mindsets and behaviours. Employee engagement should form a key part of your strategy. Encourage your team to consider ways they can work more effectively and empower them to take ownership of their preferred way of working.