The government has responded to its consultation, 'Improving Access to Flexible Working', confirming significant changes to the flexible working regime from autumn 2027.
The headline change is that employers will have to show that refusing a flexible working request is reasonable. There will also be a new statutory process to follow before saying no.
What's changing?
The Employment Rights Act 2025 (ERA 2025) introduces three key changes:
- an employer will only be able to refuse a flexible working request where it is reasonable to do so;
- when refusing a request, the employer will have to identify the relevant statutory ground and explain why it considers the refusal reasonable on that ground; and
- regulations can prescribe the steps an employer must take before refusing a request.
The government has now confirmed that it will introduce these regulations, with the new reasonableness test and process taking effect in autumn 2027.
A new "light touch" process before saying no
Where a request cannot immediately be agreed, employers will have to follow a new statutory process. This draws on existing Acas non-statutory guidance but will turn key elements of good practice into legal requirements.
Setting up the meeting
The meeting must also take place within the existing two-month decision-making period and:
- clearly explain the challenges it has identified with the request;
- explain why request cannot feasibly be accommodated, or why refusing it is reasonable by reference to the relevant statutory business reason(s); and
- consider whether there are feasible alternative arrangements.
The employer can only reject a proposed alternative where the relevant statutory business reason applies. The discussion and its outcome must be recorded and communicated to the employee.
The employee must be given fair and reasonable notice of the meeting and told its purpose in advance so that they can prepare. The meeting must also take place within the existing two-month decision-making period.
- clearly explain the challenges it has identified with the request;
- explain why request cannot feasibly be accommodated, or why refusing it is reasonable by reference to the relevant statutory business reason(s);
- consider whether there are feasible alternative arrangements; and
- only reject a proposed alternative where a relevant statutory business reason applies.
The discussion and its outcome must be recorded and communicated to the employee.
After the meeting
The employer must confirm in writing:
- a summary of what was discussed;
- any conclusions or next steps agreed during the meeting; and
- whether the flexible working request has been approved, rejected, or an alternative arrangement agreed.
Changes to the initial proposals
Not all of the government's original proposals will make it into the new regime.
The decision-maker will not have to attend the meeting. The government had proposed making this a legal requirement but has dropped the idea following consultation feedback. It nevertheless considers that, in most cases, someone with authority to make the decision should attend, while recognising that this may be difficult in larger organisations where decisions involve several people.
Trial periods will not have to be discussed at every meeting. Instead, guidance will be strengthened to raise awareness of trial and review periods as possible ways of testing a flexible arrangement.
Employers will not have to ask whether the request should be treated as a reasonable adjustment. The government accepted that this risked creating confusion between two separate workplace rights. Instead, it intends to improve guidance on the relationship between flexible working requests and the duty to make reasonable adjustments for disabled employees.
So, when will it be "reasonable" to say no?
This is likely to be the key question for employers.
The existing eight statutory business reasons for refusing a flexible working request will remain - the burden of additional costs; detrimental effect on ability to meet customer demand; inability to re-organise work among existing staff; inability to recruit additional staff; detrimental impact on quality; detrimental impact on performance; insufficiency of work during the periods the employee proposes to work; and planned structural changes.
However, identifying one of those reasons will no longer be enough The employer will also need to demonstrate that it was reasonable to refuse the particular request on that ground.
Ultimately, it will be for employment tribunals to determine how the reasonableness test applies to an employer's particular business or operational needs.
Acas is expected to publish guidance on the new reasonableness test by the end of 2026, which should give employers a much clearer indication of the circumstances in which rejecting a request may be reasonable.
Acas Code to be revised
Acas will consult on revising its Code of Practice on requests for flexible working, including specific guidance on the new reasonableness test. The revised Code is expected to be laid before Parliament in early summer 2027 and will take effect at the same time as the wider flexible working reforms in autumn 2027.
What should employers do now?
There is no need for an immediate overhaul given the new regime is not expected until autumn 2027, and important detail is still to come.
But employers should start thinking ahead. In particular:
- review your current flexible working processes - does it already provide for a meaningful discussion before a request is rejected?
- look at how decisions are made and recorded. Under the new regime, the reasoning behind a refusal will matter much more;
- think alternatives, not simply yes or no. Managers will be expected to engage properly with other workable arrangements before rejecting a request;
- train managers. A statutory business reason may get an employer through the door, but under the new test it will also have to explain why relying on that reason was reasonable in the particular circumstances.
The direction of travel is clear: rejecting a flexible working request will require a more considered and clearly evidenced decision-making process. Employers that build that discipline into their procedures now will be well placed for autumn 2027.
