You are currently viewing The Hidden Risks of Flexible Working: What Employers and Employees Need to Know

The Hidden Risks of Flexible Working: What Employers and Employees Need to Know

The landscape of the British workplace has undergone a seismic shift since the global pandemic. What began as a temporary necessity has transformed into a fundamental expectation for many employees. However, as the initial novelty of remote work fades, many organisations are now attempting to implement "back-to-office" (RTO) mandates. This push-pull dynamic has created a complex legal environment where statutory rights and corporate policy frequently clash.

As of April 2024, the legal framework governing flexible working in England and Wales has seen its most significant update in a decade. For both employers and employees, understanding these changes is no longer optional, it is a critical requirement to avoid costly litigation and ensure workplace harmony. At Tyndel Solicitors, we have seen a sharp increase in enquiries related to employment disputes arising from these very issues.

The 2024 Legal Landscape: A New Era for Employees

On 6 April 2024, the Employment Relations (Flexible Working) Act 2023 came into full effect, significantly bolstering the rights of employees. The most notable change is the removal of the previous 26-week qualifying period. Flexible working is now a "day-one" right. This means that a new hire can legally request flexible working arrangements from their first day on the job.

But the "day-one" right is only the tip of the iceberg. The new regulations have introduced several procedural shifts that tilt the balance of power toward transparency and consultation.

Key Statutory Rights Breakdown

  1. Two Requests Per Year: Employees are now permitted to make two statutory requests for flexible working in any 12-month period, as opposed to the previous limit of one. This allows employees to adapt their working patterns as their personal circumstances change throughout the year.
  2. Removal of the "Impact" Statement: Previously, employees were required to explain how their request might affect the business and how that impact could be mitigated. This burden has been removed. The onus is now firmly on the employer to assess the request's impact.
  3. Shortened Decision Window: Employers must now respond to a request, including any appeal process, within two months. This is a reduction from the previous three-month timeframe.
  4. The Duty to Consult: Perhaps the most significant procedural change is that an employer cannot refuse a request without first consulting with the employee. A "blanket" rejection without a meeting is now a direct breach of the statutory procedure.

APRIL 2024 UPDATES - Day-One Right, Two Requests Per Year, 2-Month Decision Window, Duty to Consult

The Consultation Requirement: Beyond a Simple "No"

The requirement to consult is not a mere formality. According to the updated Acas Code of Practice on requests for flexible working, the consultation should be a meaningful dialogue. It is an opportunity for the employer and employee to explore the request, consider the benefits for both parties, and, crucially, look for compromises if the original request cannot be fully met.

If an employer refuses a request without a consultation, the employee may have grounds to bring a claim to an Employment Tribunal. While the maximum compensation for a procedural breach of the flexible working regulations is relatively low (capped at eight weeks’ pay), the real danger for employers lies in the potential for associated discrimination claims, which carry uncapped compensation.

The Eight Permitted Business Reasons for Refusal

Despite the strengthened rights for employees, it is important to remember that the law provides a right to request, not a right to have. Employers still retain the power to refuse a request, but they must rely on one or more of the eight statutory business reasons.

These reasons are:

  • The burden of additional costs.
  • A detrimental effect on the ability to meet customer demand.
  • An inability to reorganise work among existing staff.
  • An inability to recruit additional staff.
  • A detrimental impact on quality.
  • A detrimental impact on performance.
  • An insufficiency of work during the periods the employee proposes to work.
  • Planned structural changes.

PERMITTED BUSINESS REASONS - Extra Costs, Performance Impact, Quality Impact, Inability to Reorganise

When refusing a request, the employer must clearly state which of these reasons applies and provide a factual explanation as to why. Generalised statements such as "we prefer people in the office" or "it's better for culture" are unlikely to suffice if challenged in a tribunal. The reason must be genuine and evidence-based.

Navigating Back-to-Office Mandates: The Discrimination Trap

The most contentious area of employment law today is the enforcement of back-to-office mandates. Many companies are now requiring staff to return to the physical office for three, four, or even five days a week. While employers generally have the right to determine where their employees work, doing so via a "blanket policy" can lead to significant legal exposure.

Indirect Sex Discrimination

Statistically, women continue to bear a disproportionate share of childcare and eldercare responsibilities. A strict requirement to be in the office full-time may disadvantage women more than men. If an employer refuses a flexible working request from a female employee who needs to work from home to manage childcare, and the employer cannot objectively justify the requirement for office attendance, they may face a claim for indirect sex discrimination.

"Objective justification" requires the employer to prove that the office mandate is a "proportionate means of achieving a legitimate aim." Improving "team culture" is a legitimate aim, but is a 100% office mandate proportionate if the same aim could be achieved with two days in the office? This is the question tribunals are increasingly asking.

Disability Discrimination and Reasonable Adjustments

Under the Equality Act 2010, employers have a legal duty to make reasonable adjustments for employees with disabilities. For many disabled employees, working from home is not just a preference; it is a necessity that allows them to manage their condition, avoid difficult commutes, or work in a controlled environment.

If an employee makes a flexible working request that is linked to a disability, the employer must treat this not just as a statutory request, but as a potential request for a reasonable adjustment. Failing to consider home-working as a reasonable adjustment can lead to a disability discrimination claim. Unlike standard flexible working claims, these claims have no ceiling on the compensation that can be awarded.

DISCRIMINATION RISKS - Sex Discrimination, Disability Adjustments

Avoiding "Detriment" and Victimisation

Another hidden risk for employers is the concept of "detriment." The law protects employees from being treated poorly because they have made a flexible working request. This includes being passed over for promotion, being excluded from key meetings, or being subjected to a hostile work environment because they are "the one who works from home."

If an employee feels they are being punished for their working pattern, they may bring a claim for detriment or, if they are eventually forced to leave, constructive unfair dismissal.

Best Practices for Employers

To navigate these risks, employers should move away from rigid mandates and toward a more nuanced, case-by-case approach.

  • Review Your Policies: Ensure your flexible working policy is updated to reflect the April 2024 changes. Visit our practice areas page to see how we can assist with policy reviews.
  • Train Your Managers: Managers are the front line of these requests. They must understand the duty to consult and be aware of the "red flags" for discrimination.
  • Document Everything: Every decision regarding a flexible working request should be documented, including the business reasons for any refusal and the alternatives considered during the consultation.
  • Focus on Output, Not Attendance: Shift the culture toward measuring performance based on results rather than hours spent at a desk.

How Tyndel Solicitors Can Help

At Tyndel Solicitors, we provide expert counsel to both employers and employees navigating the complexities of the modern workplace. Whether you are an employer looking to draft a legally sound hybrid-working policy or an employee who feels their statutory rights have been ignored, our team is here to provide the professional integrity and legal expertise you need.

The shift toward flexible working is not a passing trend; it is a permanent change in the legal and social fabric of employment. By understanding the risks and adhering to the statutory framework, businesses can foster a more inclusive, productive, and legally compliant workforce.

For more information on our services or to discuss a specific case, please contact us today.


Leave a Reply