New Law on Flexible Working

On 20 July 2023, the Employment Relations (Flexible Working) Act 2023 received Royal Assent and became law. This landmark legislation introduces comprehensive reforms to the flexible working framework, scheduled to come into force in July 2024. The statutory Acas Code of Practice on flexible working will be updated in line with these changes.

Background to the Reforms

In September 2021, the Government launched a consultation seeking views on extending the right to request flexible working to Day 1 of employment (currently, employees must have 26 weeks’ service). The December 2022 response confirmed support for making this a Day 1 right and estimated that an additional 2.2 million employees would be brought within scope.

To implement these reforms, the Government backed the Employment Relations (Flexible Working) Bill 2022–23, sponsored by Labour MP Yasmin Quereshi, which became the Employment Relations (Flexible Working) Act 2023 upon receiving Royal Assent.

Key Changes to the Flexible Working Framework

• Removal of Explanation Requirement: Employees will no longer need to explain the effect of their request on the employer or how any impact might be managed.
• Increased Requests: Employees may submit two flexible working requests per year instead of one.
• Mandatory Consultation: Employers must now consult with employees before refusing a flexible working request.
• Faster Decision-Making: Employers will have two months (instead of three) to respond to a request, unless an extension is agreed.

Note: The Act does not itself establish the Day 1 right to request flexible working; this will be delivered via secondary legislation at a later date.

Additional Updates for Employers

On 12 July 2023, Acas launched a consultation to update its statutory Code of Practice on handling flexible working requests. Key proposals include:

• Clarifying what meaningful consultation entails, recommending meetings both for accepted and rejected requests.
• Extending who may accompany an employee at meetings, aligning with disciplinary and grievance rules.
• Guidance on the information employers should provide when explaining decisions.
• Encouraging an internal appeal process for rejected requests.
• Introducing guidance on the upcoming right to request more predictable working patterns.

The consultation closes on 6 September 2023. Acas will also revise its non-statutory guidance to reflect these changes.

Separately, on 19 July 2023, the Government launched a call for evidence on “non-statutory” flexible working arrangements, seeking input on best practices, barriers and benefits to inform its future strategy.

Recommended Steps for Employers

With these reforms expected to take effect in July 2024, employers have a year to prepare. Consider the following actions:

• Review Recruitment Practices: Specify suitable flexible options in job adverts and discuss preferences during interviews to reduce early requests.
• Update Policies: Revise flexible working policies to reflect the reforms, while still encouraging employees to explain potential effects of their requests to facilitate timely decisions.
• Design Consultation Processes: Establish clear procedures—ideally including face-to-face meetings—for both accepted and rejected requests, allowing for meaningful dialogue.
• Train HR and Managers: Educate your teams on the new requirements and ensure they read the final Acas Code when published.
• Assess Resources: Allocate adequate support for handling up to two requests per employee each year and to meet the shorter response timeframe.
• Strengthen Record-Keeping: Implement systems to log request dates, consultation steps and outcomes within each 12-month period.
• Contribute to Consultations: Consider submitting feedback on both the Acas draft Code and the Government’s non-statutory flexible working call for evidence.

Further Reading

• New Law Passed Which Will Shake Up Flexible Working Regime
• Flexible Working Tag Page
• Employment Relations Tag Page