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

The Current State: Flexible Working in 2024

From April 2024, requesting flexible working became a legal right for employees across the UK. The introduction of "day one" flexible working rights marks a significant milestone in employment legislation, removing the previous requirement for employees to work for their employer for a minimum term before becoming eligible to request flexible arrangements. This shift fundamentally changes how and where we work—permanently and for the better.

Formal vs. Informal Approaches

As organisations adapt to this new reality, two distinct approaches to flexible working have emerged:

Formal approaches include:

• Four-day working weeks (predicted by Gartner to become the norm in 2024)

• Part-time contracts

• Job sharing agreements

• Term-time contracts

• Structured remote or hybrid working patterns (e.g., three days remote, two in the workplace)

• Mandated office presence for a set number of days/hours

• Shift rotation patterns

Informal approaches include:

• Colleague-initiated shift swaps

• Time off in lieu (TOIL)

• Staggered hours (different start and finish times)

• Flexi-time (employee-chosen start and finish times)

• Compressed hours (longer hours on some days to finish earlier on others)

For informal approaches to succeed, a strong culture of trust is essential within the organisation.

Benefits of Flexible Working

Benefits for Employees:

Improved Work-Life Balance

Flexible working arrangements allow employees to better balance their professional responsibilities with personal commitments. This is especially valuable for:

• Parents who can spend more time with their children, including picking them up from school

• Those with caring responsibilities who can better manage their caregiving duties

• Individuals pursuing personal interests, hobbies, or educational opportunities

Mental and Physical Wellbeing

The UK's four-day week trial revealed significant health benefits for participants:

• Reduced stress and burnout

• Improved overall mental health

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

• Decreased feelings of pressure and overwhelm

Financial Benefits

Flexible working can provide tangible financial advantages:

• Reduced commuting costs (noted by 23% of employees as adding to financial problems)

• Decreased childcare expenses

• Lower daily expenses on meals and other work-related costs

Career Development and Satisfaction

Flexible arrangements can support career growth and satisfaction:

• Higher job satisfaction (those without access to flexible working are twice as likely to be dissatisfied in their jobs)

• Ability to pursue side projects or entrepreneurial ventures (as in Virgin's example of employees becoming published authors)

• Enhanced skills development through better work-life integration

Empowerment and Autonomy

Flexible working gives employees greater control over their working lives:

• Choice in how, when, and where work is completed

• Autonomy to adapt work patterns to personal productivity rhythms

• Trust from employers that enhances confidence and engagement

Support for Diverse Needs

Different flexible working options can accommodate various personal circumstances:

• Support for neurodivergent individuals who may benefit from tailored work environments

• Accommodations for those with physical or mental health challenges

• Options for employees at different life stages and with changing personal circumstances

Benefits for Employers:

Enhanced Productivity and Performance

Contrary to traditional concerns, flexible working has demonstrated positive impacts on output:

• The four-day week trial showed improved productivity across participating companies

• Employees often report higher concentration and efficiency when working in their preferred environments

• Reduced absenteeism means more consistent workflow and output

Talent Attraction and Retention

Flexible working has become a crucial factor in the employment market:

• 92% of companies in the four-day week trial continued the practice due to positive outcomes

• Standard Chartered found it was attracting and retaining more diverse talent

Cost Savings

Businesses can realise significant financial benefits:

• Reduced office space requirements

• Lower operational costs for utilities and facilities

• Decreased turnover means lower recruitment and training costs

Improved Employee Engagement

Flexible working fosters stronger connection to the organisation:

• Employees report increased satisfaction and engagement

• Greater loyalty to employers who accommodate their needs

• Enhanced trust between management and staff

• Standard Chartered reported stronger employee engagement after implementing flexible options

Business Resilience

Organisations with established flexible working practices demonstrate greater adaptability:

• Enhanced ability to respond to disruptions or crises

• Distributed workforce can maintain operations under various circumstances

• Practice in remote collaboration strengthens communication processes

Increased Diversity and Inclusion

Flexible policies support diversity objectives:

• More accessible work opportunities for those with caring responsibilities

• Greater gender equality in the workplace (highlighted during the International Women's Day event)

• Accommodation of different working styles and personal circumstances

• Standard Chartered specifically noted gaining a "clear competitive advantage" through increased diversity

Cultural Transformation

Organizations embracing flexibility often experience positive cultural shifts:

• Development of trust-based working relationships

• Focus on outcomes rather than presence

• More collaborative and supportive management approaches

• Greater emphasis on work quality over quantity

Success Stories: Flexible Working in Practice

Many forward-thinking organizations have already embraced flexible working policies with remarkable results:

Standard Chartered offers five working options to employees, allowing them to choose between hybrid and flexible hours at home and/or in the office, or a fixed agreement. Their implementation process included consultation at every level, resulting in:

• Improved work-life balance

• Stronger employee engagement

• Attraction and retention of more diverse talent

• A clear competitive advantage

Leonardo UK, an aerospace, defence, and security giant, won the Best Flexible Working Policy Award at the 2023 Investors in People Awards for their "Custom Working" approach. Their policy has enabled employees to maintain work responsibilities while managing personal circumstances, including caring for ill family members.

Even Virgin embraced flexible working years before it became mainstream. Richard Branson shared how remote working technology allowed two employees to pursue their ambitions, with one becoming a published author and another supporting his wife's writing career. As Branson noted, "It's archaic to assume that people do their best work at a desk."

Implementing Successful Flexible Working Practices

For organisations planning to implement new flexible working approaches, consider these key strategies:

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 outcomes.

3. Invest in leadership training. Managers need specific skills and knowledge to confidently lead hybrid or flexible teams.

4. Provide appropriate tools and equipment. Employees cannot succeed without the right systems and resources to perform their jobs.

The Evolution: Flexible Working in 2023

By early 2023, flexible working had already become a central topic in workplace discussions. In December 2022, the UK Government announced plans to make requesting flexible working a right from day one of employment, signalling the beginning of this significant shift in employment law.

The Four-Day Week Experiment

The results of the UK's largest trial of a four-day work week were released in early 2023, with compelling findings:

• 92% of participating 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

International Women's Day Insights

Flexible working emerged as a key theme during P3's online International Women's Day event in 2023. After experiencing the benefits of remote working during the pandemic, employees began expecting more flexibility from their employers.

As P3 HR Manager Claire Mitton noted at the time: "There are lots of ways that businesses can increase flexibility for staff, including buying and selling holidays, and offering compressed hours, but also through bonuses and incentives for those who can't work flexibly. The most important thing is to engage staff in a conversation about what they would value and what would motivate them. It could be more training opportunities, dress down days or social events. It’s not a one-size-fits-all situation as not everyone can work in the same way, but it’s important to engage with your teams and have these conversations."

Legal Status and Options in 2023

At this point, UK law still stated that employees could only request flexible working after 26 weeks of employment, with requests limited to one per 12 months. However, businesses were already exploring multiple flexible working arrangements:

• Part-time working

• Job sharing

• Homeworking

• Shift swapping

• Term-time contracts

• Compressed hours

• Four-day weeks

• Career breaks

Benefits and Considerations

Research by the CIPD showed that people without access to flexible working were approximately twice as likely to be dissatisfied in their jobs compared to those with flexibility options.

For employers, the benefits included:

• Reduced stress and burnout among staff

• Healthier work-life balance

• Increased job satisfaction

• Decreased absence, resignations, and sick leave

However, challenges remained. Organisations 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 Beginnings: Flexible Working in 2022

The foundations for today's flexible working legislation were established in 2022, when the UK government ran a consultation from September to December 2021 to gather views from employees and employers. This was in response to the Flexible Working Bill introduced to Parliament in June 2021.

The Initial Proposal

The initial policy changes proposed:

• Allowing employees to request flexible working from day one (rather than after 26 weeks)

• Permitting more than one change request per year

• Reducing employer response time

• Requiring employers to suggest alternatives if unable to accommodate the original request

Support for Carers

Additionally, the government planned to introduce a day one right for the 5 million UK workers with caring responsibilities to have one week's unpaid leave annually. This was particularly significant given that:

• 1 in 7 of the UK workforce had caring responsibilities alongside their jobs

• Approximately 600 people left their jobs daily due to caregiving demands, according to Carers UK

The Cultural Shift

By 2022, flexible working had already demonstrated benefits for both employees and employers during the pandemic. The focus shifted to empowering employees to have greater control over their work arrangements, with the goal of creating a more productive, happy, and healthy workforce.

Guidance for Organisations

To prepare for these changes, businesses were advised to:

1. Develop capacity to manage requests within new timescales

2. Train managers to handle change requests effectively

3. Review existing policies and procedures

4. Consult with employees to strengthen working relationships

5. Be transparent about roles suitable for flexible working in job advertisements

6. Structure response processes, particularly for rejections

Overcoming Barriers

Research from Beis and the Equalities and Human Right Commission revealed significant barriers to flexible working requests:

• Almost 40% of working mothers who would benefit from flexible working didn't request it, assuming rejection or fearing career damage

• One in three flexible working requests were refused

• 46% of workers had no access to any form of flexible working

Understanding Request Rejections

At this time, employers could reject flexible working applications for eight reasons:

1. Extra costs that would damage the business

2. Inability to reorganize work among other staff

3. Recruitment challenges for the work

4. Impact on quality

5. Impact on performance

6. Inability to meet customer demand

7. Lack of work during proposed times

8. Planned workforce changes

These reasons were considered too broad and vague by many employees and employers who participated in the consultation, prompting the government to consider narrowing them while balancing individual and business needs.

The Future of Flexible Working

As we move forward, flexible working continues to reshape how we think about work and the workplace. What began as a response to the pandemic has evolved into a permanent transformation of employment practices, officially enshrined in UK law from April 2024.

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

Most importantly, successful flexible working policies require ongoing communication, willingness to adapt, and a foundation of trust between employers and employees. By listening to workforce needs and implementing thoughtful, inclusive policies, organizations can turn this legislative change into a competitive advantage while improving quality of life for their employees.

How we can help you

If you’d like to discuss any of the issues detailed in this article, get in touch with us today on 0161 941 2426. We’re here to help.