Flexible Working and Hybrid Policies: An Employer’s Guide

Since the pandemic, flexible working has completely reshaped the modern employment landscape. When offices sat empty and staff were forced to work from home, many companies discovered that remote and hybrid models weren’t just possible, but mutually beneficial for employers and employees alike. Reduced overheads, eliminating commutes, improved employee retention, and working from the sofa – what’s not to love? 

According to the Chartered Institute of Personnel and Development (CIPD), when it comes to flexible working arrangements, the vast majority of organisations (91%) offer at least some kind of arrangement, with the most common on offer being remote working, part-time hours, and informal flexibility. SMEs in particular say that 65% of their employees are able to work flexibly, compared with that of larger organisations at 53%. 

Due to the urgency of its implementation though, it’s no wonder that proper frameworks were not able to be put in place in time to support this new working model, which can put companies at risk of inconsistent practices and data security breaches potentially resulting in legal claims. Legislation is finally catching up to demand though, and as set out in the new Employment Bill, employers will need to justify refusals to flexible working requests more clearly and have good enough reasons if denying them. Since April 2024, employees are entitled to make flexible working requests from day one of their employment, rather than after 26 weeks of service. Employees now have just two months (from a previous three) to respond to said request and are required to handle them in a reasonable manner. Employees can also make up to two statutory requests per year, providing greater flexibility to adapt working arrangements to changing personal circumstances. 

Having clear and detailed flexible working policies is essential to protecting both employers and employees. Ambiguity can lead to misunderstandings, inconsistent treatment, and even legal disputes. Here’s what you need to know to stay on the right side of the law while maintaining you and your employees’ wellbeing.  

Can an Employer Still Say No?

While employers do have a duty to consider each request in a ‘reasonable’ manner, there are of course some circumstances in which flexible or hybrid working may not be sustainable for a company at that given time, in which case an employer can indeed refuse the request. A reasonable manner doesn’t mean just nodding along, nor does it mean dismissing requests without the grounds to do so, it involves engaging in a meaningful discussion with the employee, and genuinely considering how their request could work in practice rather than defaulting to a refusal. Employers should explore alternatives and compromises in instances where the full request is not possible, and records of these conversations should be kept. Being transparent about the business rationale and maintaining consistency across all teams helps demonstrate that the process has been fair and reasonable in coming to a solution.

Typical grounds for refusal include:

• • Burden of additional costs 

• • Detrimental impact on performance or quality of work

• • Inability to redistribute work across existing staff

If, for example, a team member’s requests to work from home two days a week was denied by management and put down to ‘team cohesion’ or something equally vague, without documenting the process, risks could include a potential claim of unfair treatment. To avoid this, employers must clearly outline the reasons, explore alternatives, and document communications. 

It’s important here, to clearly distinguish between flexible working (which refers to variations in hours, patterns, or shifts) and hybrid arrangements (which specifically involve working from home or another location rather than the office). Failing to treat these requests consistently and providing vague or insufficient reasons for rejection can lead to discrimination claims or accusations of unfair treatment.

Legal Considerations

Flexible and hybrid arrangements still carry legal implications beyond their initial request, in other words, you still have a duty of care over your employees in all the same ways as you would if they were under the same roof as you. 

• • Firstly, contracts must be updated to reflect the new working patterns/arrangements, including details of hours, locations, breaks, and expectations surrounding availability. This must be done within 28 days of the working conditions changing. Having all of these details agreed and documented means everyone stays on the same page and minimises disputes surrounding any of the aforementioned terms. 

• • While the home may not be a traditional workplace, risk assessments, ergonomic guidance, and regular check-ins remain crucial. 

• • Remote work may increase risks of sensitive data exposure, so secure systems, clear IT policies, and employee training are essential. 

• • Performance management should adapt to flexibility without feeling invasive, for example, setting clear objectives, monitoring outputs rather than hours, and maintaining open communication ensures accountability while respecting privacy. 

Wellbeing from a Distance

Wellbeing support is particularly important for remote workers, whose working conditions can make them significantly more prone to mental burnout than those working in the office. The Royal Society for Public Health (RSPH) recently found that 67% of remote workers surveyed, struggle to switch off from work. This can lead to increased isolation, burnout, and blurred boundaries between work and personal life – all of which can affect one’s mental health. Employers should combat this by taking a proactive approach to their teams’ mental wellbeing, by holding regular check-ins, and providing access to mental health resources.

IR35 and Contractors

No, it’s not a Star Wars character you’ve never heard of, though it can be just as tricky to understand. IR35 – sometimes referred to as the Intermediaries Legislation – is a set of tax rules that applies to people contracted through an intermediary who are not classed as genuinely self-employed by HMRC. Its purpose is to stop ‘disguised employment,’ where individuals might pay less tax than they should. Flexible work can be great for your employees, but it’s also been adopted by contractors, freelancers and other gig economy roles as a way of expanding their client base and fitting commitments around a varied schedule, therefore, ensuring clarity over status is critical, particularly with IR35 considerations affecting tax and employment rights. 

Flexible and hybrid working styles are no longer reserved for those lucky enough to find a job that offers them, they are essential options to boost productivity, retention, and crucially, legal compliance. As the law evolves to keep up with demands – including stricter timelines and clearer expectations for handling flexible working requests – employers must ensure their policies also keep pace, addressing contracts, wellbeing, and operational needs.

Book your Employment Law Health Check today to ensure your flexible working policies are legally compliant and prepared for future changes.