Guide to Flexible Working Requests for Small Businesses

What is a flexible working request?

A flexible working request is a formal application from an employee to change their working pattern, hours, or location. This might include working from home, changing start/finish times, compressed hours, or part-time working. As a small business, managing flexible working requests can be both an opportunity and a challenge. These arrangements can boost employee satisfaction and retention. However, they require careful planning and consideration to ensure business needs are met while accommodating the employee's request.

Key point: All employees have the legal right to request flexible working from day one of employment.

What changed in April 2024?

The Employment Relations (Flexible Working) Act 2023 introduced significant changes:

• Day one right – Employees can request flexible working from their first day (previously after 26 weeks).

• Faster response time – Employers must decide within 2 months (previously 3 months).

• No need to explain impact – Employees no longer need to detail how their request might affect the business.

• Two requests per year – Employees can make two requests per year.

• Mandatory consultation - Employers must consult with the employee prior to decision

Practical tip for small businesses: These changes mean you’re likely to receive requests earlier in the employment relationship. Have a clear policy and process ready from day one.

How should employees make a request?

Requests must be made in writing and include:

• The date of the application

• The change being requested (hours, pattern, or location)

• The date they want the change to start

• Whether they’ve made a previous request

Employees do not need to explain how the business might accommodate the request or what impact it might have.

Consider providing employees with a simple request form to ensure all required information is captured. You can access our free form here.

Evaluating Employee Requests

When you receive a flexible working request, assess it thoroughly. Hold a discussion with the employee to clarify their reasons for seeking flexibility and the proposed changes. Ask targeted questions to understand their expectations while expressing your consideration of the business's position. This open dialogue lays a foundation for mutual understanding. Following thorough consideration, respond to the employee’s request in a timely fashion, and provide clear reasoning for either approval or denial.

The starting point is that flexible working requests should be agreed except for permitted business reason, so every attempt should be made to accommodate the request.

What are the 8 permitted reasons for refusal?

You can only refuse a flexible working request on one or more of these statutory grounds:

1. Burden of additional costs – The change would cost too much

2. Detrimental effect on ability to meet customer demand – Service levels would suffer

3. Inability to reorganise work among existing staff – No practical way to cover the work

4. Inability to recruit additional staff – Can’t hire to fill the gap

5. Detrimental impact on quality – Work standards would drop

6. Detrimental impact on performance – Ability to carry out the role would be impacted

7. Insufficiency of work during proposed working periods – Not enough work at the requested times

8. Planned structural changes – Upcoming reorganisation makes it impractical

Important: You must have a genuine business reason that falls into one of the above categories. “I don’t like it” or “We’ve always done it this way” are not valid grounds for refusal.

What is the process for handling requests?

Step 1: Acknowledge (immediately)

Confirm receipt of the request in writing as soon as possible.

Step 2: Consider (within 2 months)

• Review the request objectively

• Consider how it might work in practice

• Explore alternatives if the exact request isn’t feasible

• Arrange a meeting to discuss (not mandatory, but recommended)

Step 3: Decide (within 2 months)

You must make a decision within 2 months of receiving the request. You can extend this deadline only if the employee agrees in writing.

Step 4: Respond in writing

• If accepting: Confirm the new working arrangement, start date, and any trial period

• If refusing: State which of the 8 grounds applies and explain why

• If proposing an alternative: Clearly outline the compromise and invite discussion

Practical tip for small businesses: Hold a meeting even if you’re minded to refuse. It shows you’ve genuinely considered the request and may help you find a workable compromise.

Can I offer a trial period?

Yes. Trial periods are a sensible way to test whether a new arrangement works for both parties. Agree in writing:

• The length of the trial (typically 3-6 months)

• Review dates

• What happens if it doesn’t work (revert to original terms or alternative arrangement)

• Notice period for ending the trial

Key point: Make it clear whether the change is temporary (trial) or permanent from the outset.

What if I need to refuse the request?

Your written refusal must:

• State which of the 8 statutory grounds applies

• Explain why that ground applies to this specific request

• Be sent within 2 months of the request

• Inform the employee of their right to appeal

Common mistake: Vague refusals like “it’s not practical” won’t stand up to scrutiny. Be specific about the business impact.

Can employees appeal?

There’s no statutory appeal process however it is good practice to:

• Allow appeals within a reasonable timeframe (e.g., 14 days)

• Have the appeal heard by a different manager if possible

• Consider whether there’s a compromise you missed

• Respond to the appeal in writing

What are the risks of getting it wrong?

Employees can bring a claim to an employment tribunal if you:

• Reject their request based on incorrect facts

• Fail to follow a reasonable procedure

• Refuse without a valid statutory ground

• Miss the 2-month deadline without agreement

Maximum compensation: Up to 8 weeks’ pay (subject to the statutory weekly pay cap, currently £571, so maximum £4,568).

Indirect discrimination risk: If you refuse requests disproportionately from certain groups (e.g., women, disabled employees, older workers), you could face discrimination claims with unlimited compensation.

Quick checklist for handling flexible working requests

• Acknowledge the request immediately

• Arrange a meeting to discuss

• Consider the request objectively and explore alternatives

• Make a decision within 2 months

• If refusing, respond in writing with clear reasons and offer a right to appeal

• Document everything – notes, emails, decision rationale

• Update the contract or provide a variation letter detailing arrangements and requesting signature if accepting

When to get expert help

Consider getting HR or legal advice if:

• The employee has a protected characteristic and you’re refusing (discrimination risk)

• You’re unsure whether your business reason is strong enough

• The request is complex or involves multiple employees

• The employee has raised a grievance alongside the request

• You’ve refused a previous request from the same employee