Flexible Working After the Employment Rights Act: What Employers Can Still Refuse

What changed with flexible working in 2027

The Employment Rights Act changed how flexible working is handled, but it did not remove an employer’s ability to refuse a request. In practice, the law moved towards a stronger expectation that flexible working should be considered seriously, rather than treated as a nice extra. That is why many employers are now referring to the flexible working changes 2027 when reviewing their policies and manager guidance.

For SMEs, the biggest shift is not simply the law itself, but the process. Employers are expected to look at each request fairly, think about whether the role can be adapted, and explain any refusal clearly. If your team is still relying on an old template or manager-by-manager judgement, this is the point to review your approach and align it with a sensible HR consultancy support plan.

The lawful grounds for refusing a flexible working request

Under the current framework, employers can still refuse a flexible working request where there is a genuine business reason to do so. The list of reasons remains focused on operational need, not personal preference. Typical examples include extra cost, inability to reorganise work among existing staff, inability to recruit additional cover, impact on quality, impact on performance, or a likely negative effect on customer demand.

What matters is not just whether one of those reasons sounds relevant, but whether it actually applies to the role and the business. A refusal should be linked to evidence, such as rotas, workload data, customer service timings, staffing gaps, or records showing why cover would be difficult. If you are also reviewing pay and scheduling processes, it can help to understand how flexible arrangements interact with other compliance areas, such as the issues covered in our guide to holiday pay for irregular-hours staff.

• Extra cost to the business
• Inability to meet customer demand
• Inability to reorganise work among existing staff
• Inability to recruit additional staff
• Detrimental impact on quality
• Detrimental impact on performance
• Insufficient work during the periods the employee wants to work
• Planned structural changes to the business

The most common refusal reasons for SMEs and why they must be evidenced

For smaller employers, the most common refusal reasons are usually staffing cover, customer service, and rota disruption. These are all capable of being valid, but they need more than a general statement. Saying “we are too busy” is not enough on its own. You need to show why the specific change would create a problem and why the business cannot reasonably absorb it.

For example, if someone asks to reduce their hours on a day when that person is the only trained operator, you should record why the gap matters and whether any alternative shift pattern was considered. If a request would affect handovers, opening hours, or response times, note the practical effect rather than using broad labels. This is where an outsourced HR support service can help you document decisions properly without slowing the business down.

It is also worth remembering that “reasonable” does not mean “easy.” Employers do not have to agree to every proposed pattern, but they should be able to show that they considered the impact, looked at the wider team, and reached a decision that fits the business rather than the manager’s personal preference.

• Keep notes of who would cover the work if the request were approved
• Record any cost estimates or overtime implications
• Show whether the role can be split, swapped, or adjusted
• Note any customer-facing issues caused by the change
• Keep the reasoning consistent across similar requests

What “flexible working default UK” means in practice for employers

The idea behind flexible working default UK is that flexible working should be treated as a normal option to consider, not something employees must justify from the outset. That does not mean flexible working becomes automatic, and it does not remove the employer’s right to say no where there is a valid reason. It does mean employers should be ready to engage with requests in a more open and structured way.

In a small business, the practical version of this is simple: start by asking what the employee needs, what type of flexibility is being requested, and whether the same outcome could be achieved in a different way. Sometimes the answer is not a full refusal, but a compromise such as a later start, a compressed week, or a trial period. Building that mindset into your process is often easier if your HR admin, documentation, and approvals are all in one place through our services.

How to assess a request fairly before you decide to refuse

Before refusing a request, use the same basic checklist every time. First, understand the change being asked for in detail. Second, look at the role requirements, business hours, and team capacity. Third, consider whether the work can be reorganised, covered, or trialled in another way. Fourth, compare the request with how similar requests have been handled before.

This is where consistency matters. If one employee is allowed to work flexibly and another is refused in similar circumstances, the business should be able to explain the difference. Keep notes of the conversation, the options considered, and the reason the final decision was reached. That written trail is especially important in a growing business, where managers may change and decisions can otherwise be forgotten.

If you are creating or refreshing your process, consider setting out who reviews requests, how quickly they should be answered, and what information managers must capture before escalating a decision.

• Clarify the request in writing
• Check whether the employee has given the required details
• Review the role, workload, and service impact
• Consider alternatives before refusing
• Record the final reason in plain language
• Use the same process for every request

Flexible working policy small business: what should be written down

A clear flexible working policy small business teams can actually use should be simple, practical, and easy for managers to follow. It should explain who can make a request, how the request is made, who decides it, what information must be provided, and how the business will respond. It should also say how trial periods, appeals, and informal discussions will work.

The policy should avoid legal jargon and focus on the real steps your team follows. That includes who keeps the records, where decisions are stored, and how exceptions are handled. For founders and operations leaders, this is also a good moment to review related employment documents so the message is consistent across the business. If you are updating several policies at once, a wider review of people processes can save time later and reduce avoidable mistakes.

A good policy is not just for compliance. It also helps managers feel more confident when handling difficult requests, especially if they do not have in-house HR expertise.

Common mistakes employers make when refusing flexible working

One common mistake is refusing too quickly. Managers sometimes focus on the disruption first and skip the discussion about alternatives. Another mistake is giving vague reasons such as “not suitable for the business” without explaining why. A third is failing to keep records, which makes it difficult to show how the decision was reached.

Employers also get into trouble when they treat similar cases differently without explanation. Even if the circumstances are not identical, the business should be able to say why one request was approved and another was not. If you are dealing with multiple people issues at once, it can help to look at your wider HR compliance picture, including areas like pay, leave, and onboarding. Our guide on maternity and paternity leave for small employers is a useful example of how clear process notes help businesses stay consistent.

The final mistake is assuming a refusal ends the conversation. In many cases, a more workable arrangement can be found by changing the pattern slightly, trying it for a period, or agreeing a review date.

• Refusing without a proper discussion
• Using vague or generic wording
• Not recording the evidence behind the decision
• Failing to consider alternatives
• Applying different standards to similar requests

When to seek HR support before issuing a refusal

If the request is sensitive, involves an employee relations issue, or could affect several people at once, it is worth getting HR support before you respond. That is especially true if the employee has previously raised workload, health, or working pattern concerns, or if the role is hard to replace. A short review before you reply can save time and prevent avoidable escalation.

It is also sensible to get support where your managers are unsure how the flexible working changes 2027 apply, where your policy has not been updated, or where the reason for refusal is not straightforward. Flora HR helps UK SMEs handle flexible working requests lawfully, fairly, and in a way that works for the business. If you want a practical second opinion before you issue a refusal, contact Flora HR for straightforward support.