Flexible working law changes in 2027: what employers need to know

The Government plans to introduce stronger flexible working rules in October 2027.

If the changes take effect as intended, employers will need to assess statutory flexible working requests carefully and clearly explain their reasons for refusing any requests.

The core changes are set out in the Employment Rights Act 2025 (the “ERA”), but the exact start date and detailed guidance are not yet final.

The changes could end up having a wider effect, particularly if your business has established hybrid-working arrangements or managers who handle requests with limited input from HR.

What are the flexible working law changes in 2027?

Employees already have a statutory right to request flexible working from the first day of employment. Currently they can make two statutory requests in a 12-month period, and you generally have two months to reach a decision.

The ERA sets out two significant changes, currently scheduled to take effect in October 2027:

• If you refuse a request, you must still cite one or more statutory business reasons, but you will also need to show that refusing the request is reasonable on that basis and explain why.
• You already have to consult employees before refusing their requests. The reforms will introduce mandatory consultation steps, to be set out in secondary legislation; these aren’t yet final.

The eight existing statutory grounds for refusing flexible working requests will remain.

Under the new test, simply citing a statutory reason won’t be enough. You’ll need to explain how it applies and why it’s reasonable for you to refuse the request.

When will the new flexible working rules take effect?

The Government’s updated timetable, published on 22 October 2026, identifies October 2027 as the intended implementation month. This is not yet a fixed statutory commencement date: secondary legislation and the revised Acas Code are still outstanding, and the timing remains subject to parliamentary process.

Acas published a draft revised Code of Practice on flexible working on 1 October 2026. The consultation on that draft closes on 17 December 2026.

Until the changes take effect, you should continue to follow the current Acas Code. There is still value in reviewing your existing practices now, particularly where decisions depend heavily on individual managers.

Can employers still refuse flexible working requests?

Yes. The reforms don’t give employees an automatic right to work flexibly or remove the existing statutory grounds for refusing requests.

As an employer, you may still conclude that a proposed arrangement would increase costs, affect customer service or make it difficult to organise work within a team.

What will matter more is whether you can explain the operational impact. A manager who says “the business needs people in the office” may require more detail to support that conclusion. You should be able to identify:

• what the role needs
• how the proposed arrangement would affect those needs
• what evidence supports that assessment

What will the new flexible working reasonableness test mean for employers?

The new test adds a question – was it reasonable to refuse this employee’s request for the statutory business reason given?

For example, if an employee asks to work from home two days a week, you may have legitimate concerns about meeting customers’ needs or supervising staff. Those concerns are likely to carry more weight if they’re tied to the role and supported by evidence.

The draft Acas Code proposes four principles:

1. Use relevant evidence.
2. Adapt arrangements where possible.
3. Work together to find solutions.
4. Act transparently and consistently.

How will the flexible working consultation process change?

Employers already have to consult employees before refusing statutory flexible working requests. The ERA reforms will prescribe specific consultation steps, with the exact detail to be set out in regulations.

The draft revised Acas Code envisages discussing the request with the employee, explaining practical difficulties  and considering whether these can be addressed.

If you can’t agree to the original request, the draft Code suggests that you’ll need to discuss alternatives, such as:

• adjusting the proposed hours
• moving the start date
• using a trial period

The new regulations and revised Acas Code aren’t yet in place, so you should not treat all the proposed steps as current requirements or make wholesale policy changes now. Existing consultation obligations still apply, however, and managers should already be approaching requests with an open mind and exploring workable alternatives.

How will the reforms affect hybrid and return-to-office policies?

If your business has fixed hybrid-working or return-to-office arrangements, the new reasonableness test could make individual assessment particularly important.

A company-wide requirement to attend the office three days a week doesn’t stop an employee making a statutory request for a different arrangement.

The existence of the policy may form part of your reasoning. It shouldn’t become a substitute for considering the request.

You’ll need to look at the role itself. That might include:

• the amount of face-to-face customer contact needed
• how work is allocated within the team
• supervision requirements
• whether other working arrangements are already in place

Different employees may reasonably receive different decisions because their roles or circumstances vary. You should be able to explain those differences.

If you have large teams, have several sites or give managers a lot of autonomy, consistency will be crucial. Where there are competing requests, assess each on its own merits and record the operational position at the time.

When can a flexible working request raise Equality Act issues?

Some flexible working requests engage separate legal duties.

A request connected with a person’s disability may engage your duty to make reasonable adjustments under the Equality Act 2010, while requests linked to caring responsibilities may raise issues around discrimination.

Managers should avoid treating every request as a standalone flexible working matter. Following the statutory process correctly doesn’t necessarily resolve wider obligations around equality.

Also make sure managers know when to refer a request to HR or Legal.

What records should employers keep for flexible working requests?

Record-keeping is likely to become more important when the reasonableness test comes into force.

You should keep a clear record of:

• the employee’s request
• the operational issues you’ve identified
• the information or evidence you’ve considered
• what you discussed during consultation
• any alternatives you explored
• the reasons for the final decision

This is particularly relevant because, for statutory flexible working complaints where the relevant date falls on or after 1 October 2026, the ordinary employment tribunal limitation period has increased from three months to six months. Earlier complaints may be subject to the previous limit.

What should employers do before the flexible working changes take effect?

Businesses don’t need to replace their flexible working policies yet. The final regulations and Acas Code are still to be finalised.

There are, however, some useful checks you can make now:

• Review recent flexible working decisions. Was the reasoning clearly recorded and specific to the employee’s role?
• Check that hybrid and office attendance policies still allow individual requests to be properly assessed. A company-wide policy may be relevant, but it shouldn't replace an assessment of the individual request itself.
• Assess managers’ capabilities. Managers should be comfortable explaining operational concerns, discussing alternatives and recording how they reached a decision.
• If you have several teams or locations, consider how you’ll maintain reasonable consistency without preventing managers taking account of genuine differences between roles.

Preparing for the 2027 flexible working reforms

When the reforms come into force, you will still be able to refuse a request where a statutory business reason applies, provided refusing it is reasonable and you explain why.

Avoid relying on standard wording in refusal letters, inconsistent judgement from managers or broad assumptions about flexible working.

Taking the time now to review how you reach and record decisions should make the eventual policy update much easier. It will also help you identify gaps between the reasons you give and the supporting evidence you provide.

If you need help reviewing your flexible working policy, handling a complex request or preparing for the Employment Rights Act changes, our employment law team can advise you.