Flexible Working: Balancing Rights and Realities

The debate over where, when, and how we work has reached a new turning point with the launch of the Flexible Working Consultation 2026. On 5 February 2026, the Government launched a significant consultation to overhaul the rules on flexible working. The goal is clear: to make flexibility the default and shift the workplace culture away from a rigid “9-to-5” structure. But while these changes promise better work-life balance for millions, they also bring fresh anxieties for business owners regarding productivity and the bottom line.

This post breaks down the key proposals in the “Make Work Pay” consultation and weighs the potential benefits against the significant operational challenges highlighted by businesses.

The New Proposals: Raising the Bar for Employers

The core of the Government’s plan is to shift the starting point of any conversation about flexibility. Instead of employees asking “Can I?”, the new framework encourages employers to ask “Why not?”

Several significant changes are under consideration that could reshape employment contracts across UK workplaces.

The ‘Reasonableness Test’

Perhaps the most impactful proposal is the introduction of a statutory “reasonableness test.” Currently, employers can refuse flexible working requests based on broad business reasons. Under the new proposal, simply citing a reason may not be enough.

This test would require employers to demonstrate that their refusal is not merely convenient but also objectively reasonable and feasible. If a request is rejected, an employee could take the matter to an Employment Tribunal. The tribunal would then decide whether the employer’s decision was fair, and, if it was not, potentially award compensation.

Rights From Day One

The consultation proposes removing the waiting period for flexibility. Currently, employees often wait weeks or months before they have the standing to ask for schedule changes. The new rules would allow employees to submit statutory flexible working requests from their first day of employment.

Mandatory Consultation

Simply saying “no” will become more challenging procedurally. The proposals include a requirement for employers to consult with the employee before rejecting a request. This means engaging in a dialogue to explore alternatives or compromises, rather than issuing a flat denial.

The Case for Change: Benefits for Employees

The driving force behind these proposals is the belief that flexibility is not just a perk, but a necessity for a modern, inclusive workforce.

Improving Work-Life Balance

For many, the ability to tweak start times or work remotely is the difference between burnout and a sustainable career. The Government argues that flexibility supports mental health and wellbeing, allowing staff to manage personal responsibilities without sacrificing their professional growth.

Breaking Down Barriers

Rigid schedules often lock talented people out of the workforce. By normalising part-time hours, flexi-time, or remote options, the job market becomes more accessible. This is particularly vital for:

• Parents and carers who need to work around school runs or medical appointments.
• Disabled People: Who may need to manage energy levels or avoid rush hour commutes.

By removing these structural hurdles, the economy could benefit from a wider, more diverse talent pool that was previously untapped.

The Counterpoint: Challenges for Business

While the social arguments for flexibility are strong, the economic reality for businesses is complex. The Institute of Economic Affairs (IEA) has explored the “flexible working market” and identified several friction points that employers must navigate.

The Productivity Puzzle

One of the biggest concerns cited in the IEA exploration is the impact of remote work on productivity. While individual employees often rate their own productivity highly when working from home, employers report a different reality.

Challenges include:

• Slowed Communication: Quick questions that take seconds in an office can turn into lengthy email threads when done remotely.
• Coordination Costs: Organising teams across different locations and schedules requires significant administrative effort.
• Knowledge Transmission: Junior staff often learn by observing seniors. This “osmosis” is lost when teams are fragmented, potentially stalling skill development.

Customer Service Risks

Flexibility for staff can sometimes mean rigidity for customers. The IEA highlights the risk of “communication delays.” If a “right to disconnect” becomes standard alongside flexible hours, businesses may struggle to staff their operations during core client hours.

If a client has an urgent issue at 4:00 PM, but the account manager is on a flexible schedule that ends at 3:00 PM, business could be lost. Ensuring coverage while granting individual flexibility is a logistical tightrope that many small businesses may struggle to walk.

Profitability and Hidden Costs

Implementing these requests is not free. The administrative burden of processing requests, holding mandatory consultations, and potentially fighting tribunal claims adds up.

• Tribunal Fears: The threat of unlimited compensation claims in discrimination cases, or capped claims for “unreasonable” refusal, creates a financial risk for employers.
• Job-Sharing Costs: Splitting one role between two people often doubles the time required for training, payroll administration, and management.

If productivity dips without a corresponding drop in wages, or if administrative costs rise, profitability will inevitably suffer.

Finding the Middle Ground

The consultation period runs until 30 April 2026, giving businesses, unions, and the public time to respond. The challenge for the Government will be crafting legislation that protects workers without handcuffing employers.

For business owners, now is the time to audit current policies. If the ‘reasonableness test’ comes into force in 2027 as proposed, relying on generic refusals will no longer work. Companies need to start collecting data on how flexibility affects their operations—both the benefits and the drawbacks—so they can make evidence-based decisions when requests arrive.

Flexibility is undoubtedly the future of work. The question remains: can we design a system that truly pays for everyone?

What to Do Next

If you are an employer or HR professional, you should review the consultation documents before the April deadline. Consider how a “day one” right to request would impact your recruitment and onboarding processes.

For more information on Flexible Working: Balancing Rights and Realities talk to Click HR Limited