Flexible Working changes - are you ready for it?

Small business owners, are you prepared for the significant shift coming your way?

Last week marked a crucial milestone as the Employment Rights Bill passed its third reading in Parliament.

By October 2026, this legislation is set to transform how you handle flexible working requests from your team.

Currently, employees have a day-one right to request flexible working, but you can decline based on eight business reasons without much explanation. The new law flips this dynamic entirely - putting the burden of proof on YOU as the employer.

What does this mean practically?

If you reject a flexible working request claiming financial impact, you'll need to provide documented budget figures showing the costs. Citing quality concerns? Be prepared to detail exactly how flexibility would negatively affect your customers and operations.

Most importantly, all these justifications must be documented and could be used as evidence should an employee take you to tribunal.

This fundamentally changes the conversation from "employees proving why flexibility works" to "employers proving why it won't."

For small businesses operating with limited HR resources, now is the time to:

✅ Review your flexible working policies
✅ Train managers on proper documentation practices
✅ Consider how various flexible arrangements might actually benefit your business

Are you ready for this shift? If you need help getting your head around this and other employment legislation then get in touch.