Government confirms new consultation process and reasonableness test for statutory flexible working requests from autumn 2027

Background

Employees have long held a statutory right to request flexible working. In April 2024, the regime was expanded to allow requests from the first day of employment, require employers to decide within two months and consult employees before refusing, permit two statutory requests in any 12-month period, and remove the requirement for employees to explain the effect of their request on the business.

The Employment Rights Act 2025 (ERA 2025) will introduce two further changes to the flexible working framework:

1. A new reasonableness test: employers will only be able to reject a flexible working request where it is reasonable to do so; and

2. A power for the Secretary of State to prescribe in regulations a statutory consultation process that employers must follow before rejecting a request.

The government consulted on how these changes should work in practice earlier this year, and has now published its consultation response.

What is the government's consultation response?

The government has confirmed that both the reasonableness test and the new consultation process will be come into force in autumn 2027.

To support the changes, Acas will publish an updated Code of Practice on flexible working. Consultation on the updated Code is due to take place next year. Acas will also publish guidance on the reasonableness test later this year.

What do we know about the new process employers will be required to follow?

The new process will require employers to hold a meeting before any rejection. The objective will be to consider the feasibility of the requested arrangement, explore alternatives and do so "with a view to reaching an agreement". This last phrase was added following consultation feedback to ensure the meeting is a genuine discussion, not simply a forum for communicating a refusal.

The meeting must take place within the existing two-month decision period, and employers must give the employee fair notice and inform them of the meeting's purpose in advance. Employers must confirm the outcome of the meeting and the decision on the request in writing. Although there was strong support during the consultation for requiring discussion of trial periods and alternative start dates, the government will not make these mandatory steps. These options are already available under the current framework, and their use will instead be promoted through improved guidance.

For more information or advice, please get in touch with Elizabeth McTeigue in our Employment team.