What is flexible working?

The Complete Guide to Flexible Working for SMEs: Understanding Rights, Requests,and Business Benefits

In today’s rapidly evolving workplace landscape, flexible working has transformed from a nice-to-have perk into a business necessity. For small and medium enterprises (SMEs) across Sussex and Surrey, understanding flexible working arrangements isn’t just about compliance, it’s about attracting top talent, boosting productivity and creating a resilient business model that thrives in our post-pandemic world.

What is Flexible Working?

Flexible working refers to any work arrangement that deviates from the traditional 9-to-5 office-based model. It encompasses various approaches that allow employees to adapt their work schedules, hours, or location to better balance their professional responsibilities with personal commitments.

This modern approach recognises that every individual has unique circumstances and needs. According to the CIPD, employers who embrace flexible working see enhanced job satisfaction, increased productivity, and improved work-life balance across their workforce.

Understanding Employee Rights: What Every SME Owner Needs to Know

The Legal Framework

In the UK, all employees have the legal right to request flexible working from day one of their employment. This isn’t limited to parents or carers, it applies to every employee, regardless of their personal circumstances.

Key legal points for SME owners:

• Employees can make up to two flexible working requests within a 12-month period
• Each request must be considered on its individual merits
• You cannot reject a request simply because you’re concerned it might encourage others to apply
• Special consideration is required for employees with protected characteristics under the Equality Act 2010

 

Protected Characteristics Considerations

Rejecting flexible working requests without proper consideration can expose your business to discrimination claims. For example, dismissing a request from an employee approaching retirement could lead to age discrimination claims, while inadequate consideration of requests from working parents might result in sex discrimination cases.

Types of Flexible Working Arrangements

Understanding the various flexible working options helps you explore creative solutions that benefit both your business and employees:

1. Reduced Hours

Part-time working arrangements that allow employees to work fewer hours while maintaining career progression opportunities.

2. Flexible Start and Finish Times (Staggered Hours)

Employees can choose their start and finish times within prescribed limits, helping reduce peak-time travel and office congestion.

3. Flexitime

A system where employees work within core hours (e.g., 10 AM to 4 PM) but have flexibility around their start and finish times, promoting autonomy and engagement.

4. Compressed Hours

Full-time hours worked over fewer days, allowing employees to maintain their salary while gaining additional time for personal activities.

5. Remote Working

Arrangements where employees work from home or other locations outside the traditional office environment.

6. Term-Time Working

Particularly relevant for employees with school-age children, allowing them to work during school terms with unpaid leave during holidays.

7. Job Sharing

Two or more employees sharing the responsibilities of one full-time position, reducing individual workload while maintaining business continuity.

8. Hybrid Working

A combination of office-based and remote work, offering the best of both worlds when properly implemented.

 

How to Handle Flexible Working Requests: A Step-by-Step Guide

Step 1: Receiving the Request

When an employee approaches you about flexible working, they must submit their request in writing. The request should include:

• Details of the requested changes
• Proposed start date
• Potential impact on the business
• Suggested solutions to mitigate any negative effects
• Confirmation that this is a statutory flexible working request
• Details of any previous requests made

 

Step 2: Initial Response (Within 2 Months)

You have two months from receiving the request to provide a decision. During this time, you should:

• Acknowledge receipt of the request
• Thoroughly assess the business impact
• Consider potential compromises or alternatives
• Arrange a meeting if necessary

 

Step 3: Making Your Decision

If Approving the Request:

• Notify the employee promptly
• Update their employment contract terms and conditions
• Implement the new arrangement with clear start dates

If Declining the Request:

• Schedule a meeting to discuss the decision
• Explore potential compromises (hybrid working, shift swapping, etc.)
• Only reject if there’s a valid business reason
• Clearly explain the statutory grounds for refusal

 

Step 4: The Appeal Process

If an employee wishes to appeal your decision:

• They should submit their appeal in writing within a reasonable timeframe
• Arrange a meeting handled by a different manager where possible
• Give the employee opportunity to present their case
• Respond to the appeal in writing with clear reasoning
• Keep detailed records of all correspondence and meetings

 

Valid Business Reasons for Refusal

You can only refuse a flexible working request based on one or more of these statutory grounds:

• Additional costs that would damage the business
• Inability to reorganise work among existing staff
• Inability to recruit additional staff
• Detrimental impact on quality or performance
• Insufficient work during proposed working periods
• Planned structural changes to the business
• Burden of additional costs
• Detrimental effect on ability to meet customer demand

 

Using Breathe HR Software to process and manage Flexible Working Requests

Managing flexible working requests doesn’t have to be a paperwork nightmare. The good news is that Breathe HR Software transforms the entire process, making it seamless for both employees and managers while ensuring full compliance with UK legislation.

With digital HR platforms like Breathe, Line Managers or HR Users can process flexible working requests directly through the system in a matter of seconds. The system automatically captures all required information, timestamps submissions, and creates a comprehensive audit trail. Managers receive instant notifications and have clear visibility of the two-month review deadline, with built-in reminders ensuring no request falls through the cracks.

This digital approach eliminates common administrative pitfalls that plague SMEs. Gone are the days of lost emails, missed deadlines, or incomplete documentation. HR software like Breathe provides structured templates that ensure all statutory requirements are met, while automated workflows guide managers through the assessment process.

For SMEs juggling multiple priorities, this technology proves invaluable. It reduces administrative burden, minimises legal risk, and creates a professional experience that demonstrates your commitment to employee wellbeing. The system maintains detailed records of all decisions, appeals, and communications essential for compliance and potential tribunal defences.

By digitising flexible working requests, you’re not just improving efficiency; you’re showing employees that you value their work-life balance enough to invest in proper systems and processes.

 

Why Flexible Working Matters for SMEs in Sussex and Surrey

 

Recruitment Compliance : Attracting and Retaining Talent

In today’s competitive job market, flexible working options can be the deciding factor for top candidates choosing between employers. SMEs often can’t compete on salary alone, but flexibility can level the playing field.

 

Boosting Productivity and Engagement

Flexible working arrangements often lead to:

• Higher job satisfaction and loyalty
• Improved employee wellbeing
• Increased productivity through better work-life balance
• Reduced absenteeism and turnover

 

Business Resilience

Companies with established flexible working practices proved more resilient during the COVID-19 pandemic and are better positioned to adapt to future challenges.

Cost Benefits

Flexible working can reduce overhead costs through:

• Reduced office space requirements
• Lower utility and facilities costs
• Decreased absence rates
• Reduced recruitment costs due to improved retention

 

Best Practices for business owners in Sussex and Surrey

 

1. Develop Clear Policies

Create comprehensive flexible working policies that outline:

• Available options
• Request procedures
• Decision-making criteria
• Review processes

 

2. Train Your Managers

Ensure all managers understand:

• Legal requirements
• How to assess requests objectively
• Communication best practices
• Documentation requirements

 

3. Consider Trial Periods

When uncertain about a request’s viability, offer trial periods with clear review dates and success criteria.

4. Maintain Fairness

Ensure all requests are handled consistently and fairly, regardless of the employee’s role or personal circumstances.

5. Keep Detailed Records

Document all flexible working requests, decisions, and communications to ensure compliance and transparency.

Common Pitfalls to Avoid

• Blanket rejections: Each request must be considered individually
• Inadequate documentation: Poor record-keeping can lead to legal challenges
• Lack of clear communication: Employees need to understand your decision-making process
• Ignoring protected characteristics: Consider whether refusal could constitute discrimination
• Failing to explore alternatives: Look for creative solutions that work for both parties

How MJV Consulting Can Support Your Business

At MJV Consulting, we understand that managing flexible working requests can be complex, especially for SMEs with limited HR resources. Our experienced team of HR experts, provides:

• Policy Development: Tailored flexible working policies that suit your business needs
• Request Assessment: Expert guidance on evaluating and responding to requests
• Training: Manager training on handling flexible working requests effectively
• Documentation Support: Assistance with maintaining proper records and compliance
• Ongoing HR Support: Continuous advice as your flexible working arrangements evolve

 

 Conclusion

Flexible working isn’t just about keeping up with modern employment trends, it’s about creating a sustainable, attractive workplace that helps your SME thrive. By understanding the legal requirements, implementing fair processes, and viewing flexible working as an opportunity rather than a burden, you can build a more engaged, productive, and loyal workforce.