legal update / 18th Mar 2025
Flexible Working as a Legal Right – How SMEs Can Adapt and Stay Compliant
The nature of work has shifted permanently, with hybrid and remote working now embedded across many industries. The Employment Rights Bill 2024-25 reflects this change by giving employees the legal right to request flexible working from their first day of employment.
Previously, employees were required to complete 26 weeks of continuous service before making a request. From late 2025, that will no longer be the case. This article explains how small and medium-sized enterprises (SMEs) should prepare, what steps they need to take, and how to balance flexibility with business needs.
What’s Changing Under the New Law?
- Day-one flexible working right: Every employee will be entitled to request flexible working on day one of starting their role.
- Employers must provide a written decision and either accept the request or refuse it for genuine business reasons.
- The government intends to reduce bureaucracy by simplifying how these requests are managed.
What Qualifies as a “Business Reason” to Refuse Flexible Working?
The Employment Rights Bill states employers can only refuse requests based on specific, valid reasons, such as:
- A negative impact on customer service.
- Insufficient work during the requested hours.
- Cost implications that the business cannot reasonably bear.
- Concerns over performance or quality of output.
SMEs must document any refusal carefully and be prepared to explain how the reason relates to legitimate operational needs.