Circle Insights

Flexible Working Reforms: Can Employers Still Say No?

Written by Circle Editor | Jun 23, 2026 3:21:59 PM

What UK Employers Need to Know About the Employment Rights Act 2025 Changes

Flexible working has become one of the most discussed workplace issues in recent years. Employees increasingly value flexibility in how, when and where they work, while employers must balance these expectations against operational requirements, customer service and business performance. The Employment Rights Act 2025 introduces further reforms designed to strengthen employee rights and encourage more flexible working arrangements across UK workplaces.

For employers, the key question is simple: can businesses still refuse a flexible working request?

The answer is yes, but employers will need to demonstrate that decisions are fair, reasonable and based on legitimate business grounds. In this guide, we explain what is changing, how the reforms could affect employers and what organisations should do now to prepare.

What Is Flexible Working?

Flexible working refers to arrangements that differ from traditional working patterns. Examples include remote working, hybrid working, compressed hours, part-time schedules, flexible start and finish times, job sharing and adjusted shift patterns. Flexible working can help employees achieve a better work-life balance while supporting recruitment, retention and employee wellbeing. However, not every role or industry can accommodate the same level of flexibility.

What Are the Current Rules?

Employees currently have the right to request flexible working, and employers must consider requests in a reasonable manner. Employers can refuse requests where there are legitimate business reasons for doing so, including concerns relating to operational performance, customer service, staffing levels or costs.

The key principle is that requests must be considered fairly rather than dismissed automatically.

What Is Changing Under the Employment Rights Act 2025?

The Government intends to strengthen flexible working rights and increase employer accountability when handling requests. The reforms form part of a wider commitment to making flexible working more accessible across the UK workforce. While employers are expected to retain the ability to refuse requests in appropriate circumstances, organisations may need to provide clearer justification and demonstrate meaningful consideration of alternative arrangements. The emphasis is likely to move further towards dialogue, consultation and evidence-based decision making.

Can Employers Still Say No?

Yes.

The Employment Rights Act reforms do not create an automatic right for employees to work however they choose. Employers will continue to be able to refuse requests where there are genuine business reasons. However, businesses should expect greater scrutiny regarding how decisions are made and documented. Managers may need to demonstrate that they have considered the request carefully, explored alternatives and assessed potential impacts before reaching a conclusion. A poorly documented refusal could create unnecessary employee relations challenges and increase legal risk.

What Are Legitimate Business Reasons for Refusal?

Every workplace is different, and there are many situations where flexible working may not be practical.

Examples could include:

  • Health and safety requirements

  • Customer service obligations

  • Site supervision responsibilities

  • Operational coverage requirements

  • Increased costs

  • Inability to reorganise work effectively

  • Negative impact on quality or performance

The important factor is not simply having a reason, but being able to evidence and explain it.

How Could Flexible Working Affect Different Industries?

Construction

Many construction roles require physical presence on site, making remote working impractical. However, flexible start times, administrative hybrid working and alternative scheduling arrangements may still be possible for certain positions.

Warehousing and Logistics

Warehouse operations often depend on fixed shift structures and operational coverage. Employers should consider how flexible working requests interact with workforce planning and service delivery requirements.

Security Services

Security organisations must maintain site coverage, response capabilities and contractual obligations. Flexible working arrangements may need careful assessment to ensure service standards remain unaffected.

Retail and Hospitality

Customer-facing businesses often require employees to be present during trading hours. Employers should balance operational needs with employee wellbeing wherever possible.

Professional Services

Office-based environments may have greater flexibility, but organisations should still assess productivity, collaboration and client service requirements.

Why Documentation Matters

One of the most important aspects of the reforms is likely to be the quality of decision making. Managers should record discussions, assessments and the reasons behind any decisions relating to flexible working requests. Good documentation helps demonstrate fairness, consistency and compliance if decisions are later challenged. As employment law evolves, employers should view documentation as a risk management tool rather than an administrative task.

How Should Employers Prepare?

Preparation should begin before further reforms come into force. Employers should review flexible working policies, management procedures and employee communications to ensure they reflect current legal expectations.

Managers should receive training on handling requests consistently and professionally. Businesses should also assess operational requirements and identify where flexibility may be achievable without compromising performance or customer service. Organisations that take a proactive approach are likely to experience fewer disputes and stronger employee engagement.

How Circle Academy Can Help

Flexible working decisions often require strong leadership, effective communication and a sound understanding of employment law. Circle Academy helps organisations prepare through:

Employment Law Fundamentals Training, Leadership and Management Courses, Workplace Compliance Training, HR and Manager Development Programmes, Managing Difficult Conversations Training and Change Management Development.

With more than 180 accredited courses available online and in person, we help employers build compliant, capable and confident management teams.

 

 

Important Notice

The information in this article is intended as general guidance for employers and managers. It should not be relied upon as legal advice. Employment law is subject to change, and the application of legislation may vary depending on individual circumstances.

If you are unsure how the Employment Rights Act 2025 may affect your organisation, we recommend seeking appropriate legal or professional advice.

Is Your Business Ready for the Flexible Working Reforms?

The Employment Rights Act 2025 is expected to increase employer responsibilities when considering flexible working requests.