Key Takeaways
- You have a legal right to make a flexible working request from your first day of employment, and your employer must consider it reasonably under UK law.
- Employers can only refuse a statutory flexible working request for specific business reasons, and must follow a fair process when handling your application.
- If your flexible working request is refused, you can challenge the decision internally, raise a grievance, or take your case to an employment tribunal in certain situations.
- Refusal of a flexible working request may amount to unlawful discrimination or constructive dismissal if handled unfairly or linked to a protected characteristic.
- Settlement agreements can resolve flexible working disputes, with our solicitors negotiating ex gratia payments, agreed references, or exit terms if needed.
- You should never sign a settlement agreement about a flexible working dispute without independent legal advice, as required by s.203 of the Employment Rights Act 1996.
- Our solicitors offer fast, remote appointments for settlement agreement advice and negotiation, with all fees typically paid by your employer and nothing to pay yourself.
- Settlement Agreement Lawyers are SRA regulated and rated Excellent, with over 1,400 five-star reviews of our lawyers on Trustpilot, Google and other platforms.
Flexible working request: your legal rights and what to do if refused
If you are considering making a flexible working request, or your employer has just refused your application, it is important to know that UK law gives all employees a statutory right to request flexible working from their first day. Your employer must handle your request reasonably, follow a clear process, and can only refuse for defined business reasons. If your flexible working request is turned down or mishandled, you may have grounds to appeal, raise a grievance, or even negotiate a settlement agreement to resolve the dispute—independent legal advice is legally required to make any settlement agreement binding, and your employer usually covers the cost, so you do not pay for our solicitors’ advice.
Flexible working requests are not only about adjusting your hours or location—they are a key employment right that can affect your work-life balance, job security, and protection from discrimination or unfair treatment. If you are facing a flexible working refusal, understanding your rights, potential claims for discrimination or constructive dismissal, and your options for securing a fair outcome—through internal challenge or a negotiated exit—is essential before signing anything.
In this guide, you will find practical steps for making a statutory flexible working request, what to do if your request is refused, how settlement agreements can help resolve disputes, and when our solicitors can step in to secure a better deal for you. For fast, expert advice, you can call our solicitors directly on 0800 054 1144 or book your settlement agreement advice online.
What is a flexible working request and who has the right to make one?
A flexible working request is a formal application submitted by an employee to alter their working arrangements. This can include changes to hours, times, or location—for example, working from home, part-time hours, job sharing, or compressed hours. The right to request flexible working in England and Wales is set out in the Employment Rights Act 1996. As of April 2024, all employees can make a statutory flexible working request from day one of employment, removing the previous requirement for six months’ continuous service.
A flexible working request must be properly considered by the employer, though there is no absolute right to have any such request granted. The law provides a framework for when and how requests should be made and processed. Both part-time and full-time staff, and those at any level of seniority or job type, can make a request if they are under a contract of employment.
Employers are not permitted to penalise or dismiss an employee for making a flexible working request. If an employer does so, this may amount to a breach of the employee’s statutory rights and, in certain cases, could result in claims for unfair dismissal or discrimination. Relevant internal policies can set out additional, more favourable rights, but statutory rights are a legal minimum.
Check your employment contract and staff handbook before making a request—some employers allow more flexibility than the statutory minimum or have detailed procedures. Understanding your employer’s policy can help you frame your request effectively, making it more likely to succeed and reducing delays.
For more on the right to request, the gov.uk flexible working guide explains the up-to-date legal position.
How do I make a statutory flexible working request?
A statutory flexible working request must be made in writing. Although many employers provide their own forms, you can make the request by letter or email, provided you state clearly that it is a statutory request. You do not need to explain why you want the change; however, it is good practice to outline how it will work in your current role and how you believe any impact on your team or service delivery will be managed.
To comply with section 80F of the Employment Rights Act 1996 and good practice as advised by ACAS, your request should set out:
- That it is a statutory flexible working request
- The date of the request
- Details of the change sought (for example, reduced hours, specific days, change of location)
- When you would like the change to start
- If you have made previous requests (and when)
You can only make one formal statutory request in any 12-month period, but nothing prevents you from making informal requests outside this process.
An employee formally emails HR requesting to reduce her hours from full-time to four days a week, to start in two months’ time. She outlines how her workload can be managed, how her core responsibilities would be covered, and refers to her line manager for operational planning. This clarity expedites the decision process and demonstrates goodwill.
Full ACAS guidance and a request template can be found on their statutory flexible working requests toolkit.
What process must my employer follow when handling flexible working requests?
Employers must follow a fair and reasonable process when handling statutory flexible working requests. As of April 2024, decisions should be made within two months of receiving the request, unless an extension is agreed in writing with you. This timeframe is a statutory obligation and cannot be disregarded by the employer.
The employer should:
- Consider your request fairly, weighing both your needs and the operational requirements of the business.
- Arrange a meeting with you to discuss your request (if needed).
- Allow you the option to be accompanied by a work colleague at the meeting.
- Communicate the decision in writing, stating either acceptance (with details of the new arrangement) or refusal (with the legitimate business reason and how the decision was reached).
- Allow you to appeal if the request is refused, even though this is no longer strictly mandatory, it is still best practice and widely expected.
If the procedure is not followed, you may have a claim against your employer at an employment tribunal. Delays, failure to consider requests, or not giving reasons for refusal are all ‘process faults’.
Ask for the process to be confirmed in writing at the outset, and keep a record of every discussion and response. If the employer fails to comply with the process, this strengthens your position in any later dispute or settlement negotiation.
For further advice on rights if the process is mishandled, explore our Workplace Grievance guidance.
On what grounds can an employer legally refuse a flexible working request?
Employers have the right to refuse a flexible working request, but only on eight specific statutory grounds set out in section 80G of the Employment Rights Act 1996. These are:
- The burden of additional costs
- Detrimental effect on ability to meet customer demand
- Inability to reorganise work among existing staff
- Inability to recruit additional staff
- Detrimental impact on quality
- Detrimental impact on performance
- Insufficiency of work during the periods you propose to work
- Planned structural changes
Refusal reasons must be genuine and based on evidence rather than broad assertions. The employer must communicate the reason for refusal in writing, demonstrating a proper assessment of business needs versus your request.
Employers cannot lawfully refuse a request based on discriminatory grounds, such as those protected by the Equality Act 2010. If the refusal is based on irrelevant or capricious reasons, this can give rise to claims of unfair treatment.
An employer refuses an employee’s request to work remotely on Fridays, explaining that critical team meetings (which the employee leads) are scheduled in-person every Friday. The decision is explained in writing and supported by objective business needs. In such a scenario, the refusal is likely to be lawful if handled correctly.
For expert advice assessing whether your employer’s refusal was lawful or whether grounds for further challenge exist, see our Discrimination guidance.
What should I do if my flexible working request is refused?
If your statutory flexible working request is refused, review the refusal letter closely to check it sets out one of the legitimate business reasons specified by law. You should then consider whether the process was fair and genuinely considered. If there are issues with either the reason or the process, you can appeal the decision, usually in writing, stating why you believe the refusal was unreasonable or fails to address key information you provided.
Employers are encouraged (but not required by law) to allow an appeal. Most internal policies still include this as good practice. Your appeal may include additional information, address concerns raised, or highlight how alternative arrangements may work.
If all internal processes are exhausted and you remain dissatisfied, consider raising a formal grievance through your employer’s procedure. This is essential groundwork should you later bring a legal claim. If you believe discrimination played a part in the refusal, seek legal advice; strict time limits apply.
Raise your appeal promptly—usually within five working days of a refusal. Highlight any flaws in the process, misunderstandings, or evidence showing your request could be accommodated. Early, clear appeals show you are proactive and reasonable.
For more on tackling workplace disputes, visit our Workplace Grievance and Discrimination resources.
Can I challenge a flexible working refusal as discrimination or constructive dismissal?
You can challenge a refusal on the basis of discrimination if the decision relates to a protected characteristic under the Equality Act 2010—such as sex, disability, or age. For example, a refusal that disproportionately disadvantages women with childcare responsibilities, or a refusal to accommodate disability-related needs, may be indirect discrimination. Direct discrimination or failure to make reasonable adjustments can also arise.
If your employer’s handling of your request is so poor that it destroys your trust and confidence, you may be entitled to resign and claim constructive dismissal. This is a significant step, requiring evidence that the employer’s actions breached a fundamental term of your contract.
Before taking action, seek legal advice to protect your position, especially to avoid prejudicing later settlement negotiations or tribunal claims.
A mother to young children has her request to change start and finish times refused, without a reasonable explanation or consideration of her childcare needs. She raises a grievance for indirect sex discrimination under the Equality Act 2010. In another instance, an employee with multiple sclerosis is denied reduced hours despite medical evidence, raising a potential reasonable adjustments claim.
To estimate compensation values in discrimination and dismissal situations, our Discrimination Compensation Calculator and Employment Tribunal Compensation Estimator can provide useful guidance.
If your flexible working request has led to conflict or you feel your legal rights may have been breached, speak to our solicitors as early as possible. Call our settlement agreement solicitors on 0800 054 1144, or book your settlement agreement advice online for a same-day remote ILA appointment. Our advice is free to employees, as your employer covers all legal fees.
Settlement agreements for flexible working disputes: how do they work?
Settlement agreements (previously called compromise agreements) are legally binding contracts in which the employee waives the right to bring specified claims—typically including claims relating to flexible working, discrimination, or constructive dismissal—in return for financial compensation or agreed terms on exit. They are common tools where workplace disputes escalate, mutual trust has broken down, or parties want a clean and confidential resolution.
The use of settlement agreements in flexible working disputes can resolve issues swiftly and amicably without resorting to an employment tribunal. Once signed, neither party can go back on the deal. The agreement can include a reference, payment terms, agreed reasons for departure, and other specific provisions.
Any agreement must be reached voluntarily, following independent legal advice (ILA) for it to be legally binding. Under section 203 ERA 1996, an employee can only waive statutory claims if specific conditions are met, including legal advice and the adviser’s certificate.
Never sign a settlement agreement until you have clarity about the tax position, all payments due, and ongoing post-employment obligations. Our solicitors ensure every term is explained and negotiate on your behalf to maximise your financial and practical outcome—employers cover our legal costs.
See our detailed Settlement Agreement Advice for wider context on how negotiations unfold.
Why must I get independent legal advice before signing a settlement agreement? (s.203 ERA 1996 explained)
Independent legal advice (ILA) is mandatory before any settlement agreement is valid, as required by section 203 of the Employment Rights Act 1996. This applies regardless of the dispute’s background—including flexible working, dismissal, or discrimination. The adviser must be a qualified solicitor with insurance specifically for ILA work.
The law ensures the employee understands:
- The claims they are giving up
- The agreement’s legal effect
- Any ongoing restrictions (such as post-employment covenants)
- The tax impact of the payments
Without an ILA certificate, the settlement agreement cannot lawfully bind the employee, and claims could still be brought at a later stage. Most employers will not process the payments until proof of ILA is provided by your solicitor.
Your employer is required to pay a reasonable fee for the legal advice—meaning your advice is provided free to you. This ensures you are protected and informed before making a final decision.
An employee is offered a settlement agreement following a flexible working dispute. Our solicitor reviews the agreement, identifies an ambiguous tax clause, and helps secure an increased termination payment. The employer pays our fees directly, allowing the employee to exit with certainty and at no personal cost.
For more on funding and your right to free advice, read about our Free for employees / funding model.
What financial terms and payments are typical in settlement agreements after a flexible working dispute?
Financial settlements following a flexible working dispute are largely negotiated but generally combine the following elements:
- Notice pay (or payment in lieu of notice, “PILON”)
- Accrued but untaken holiday pay
- Statutory or enhanced redundancy pay (rare in pure flexible working disputes)
- An ex gratia “compensation” payment, typically in return for waiving your claims (up to a £30,000 tax-free cap)
- Any contractual bonuses, commissions, or outstanding expenses
Settlement agreements often anticipate any final salary to the leaving date and resolve questions about pay in lieu of notice, outstanding benefits, and tax. Depending on the strength of the claim (e.g., whether there is a realistic threat of discrimination or dismissal claims), compensation amounts can range from a few weeks’ salary to 6–12 months’ compensation, sometimes higher.
A schedule in the agreement breaks down each payment, with full particulars of tax treatment.
| Payment Type | Normally Tax-Free? | Usually Taxed? |
|---|---|---|
| Ex gratia settlement | Up to £30,000 | Over £30,000 taxed |
| PILON/Notice Pay | Always taxed via PAYE (PENP) | |
| Holiday Pay | Always taxed via PAYE | |
| Redundancy Pay | Statutory up to £30,000 | Taxed above £30,000 |
Push your employer for clarity on how each payment will be calculated and taxed. Use the Settlement Agreement Calculator to estimate a fair offer. Our solicitors negotiate for you and clarify every term before you sign.
If you are negotiating a settlement over a flexible working dispute, our solicitors are available to guide you through the process, maximise your compensation, and ensure your employer meets the legal requirements to fund your independent advice. Call our settlement agreement solicitors on 0800 054 1144, or book your settlement agreement advice online—your settlement agreement advice is always free to employees.
Is my settlement agreement tax free? Tax on flexible working exit payments explained
Payments in a flexible working settlement agreement are only tax-free in certain circumstances. Ex gratia payments for loss of office, or as compensation for waiving statutory claims, can be paid tax-free up to £30,000 under HMRC rules. Any amount over this threshold is subject to income tax.
Payments for notice (whether worked or paid in lieu—PENP: post-employment notice pay), accrued holiday, salary, and most contractual payments must always be taxed in the same way as ordinary pay through PAYE. The distinction is critical and must be set out clearly in your settlement agreement.
It is the employer’s responsibility to correctly deduct tax and confirm the breakdown in the agreement. However, many agreements include a tax indemnity clause stating that the employee is liable for any unpaid tax (and interest) if HMRC later challenges the tax treatment.
An employee leaving after a refused flexible working request receives a £20,000 ex gratia settlement and £5,000 PILON. The £20,000 is paid tax-free. The PILON is taxed and appears on the final payslip under normal payroll deductions. Our solicitors check all sums are correctly stated to avoid unexpected liabilities.
For current rules, see gov.uk’s page on tax on termination payments.
What key clauses and risks should I watch for in a flexible working settlement agreement?
It is vital to scrutinise every clause in your settlement agreement. Common issues include:
- Tax indemnity: Are you liable if HMRC raises questions?
- Waiver of claims: Ensure claims you want to reserve (e.g., personal injury, pension) are excluded.
- Reference: Confirm this is attached or that wording is agreed.
- Non-disparagement: Understand what you can and cannot say post-departure.
- Restrictive covenants: Check for ongoing limits on future work.
- Repayment clauses: Are any sums repayable if you get another job or break confidentiality?
Risks include signing away valuable legal rights without adequate compensation, or inadvertently accepting new restrictions that might limit your future career. Each agreement should only ever be signed once every clause is fully explained and any ambiguities removed.
Never resign before your settlement agreement is agreed in writing and all the terms are clear. Employers sometimes encourage resignation to avoid their own formal process, risking your right to notice pay and negotiation leverage.
You can find further guidance in our Settlement Agreement Advice and real-life Client success stories of past flexible working settlements.
Step-by-step: The process for signing a settlement agreement remotely (same-day advice and completion)
Signing a settlement agreement can be completed in a matter of hours, entirely remotely, with our solicitors. Here’s how our process works:
- Contact our firm and share your draft settlement agreement.
- Our solicitor reviews the terms, identifies issues, and prepares for your remote (phone or video) appointment.
- We provide you with full advice, explaining every clause, tax aspects, your claims, and any negotiation opportunities.
- If amendments are needed, we negotiate directly with your employer’s HR or legal team, aiming to improve terms.
- Once satisfied, you sign the agreement electronically. Our solicitor issues the mandatory ILA certificate direct to your employer.
- The employer finalises paperwork and processes payment, often within days.
You never pay our fees—your employer covers the cost as required under section 203 ERA 1996.
A client recently contacted us at 10am after receiving a settlement offer linked to a flexible working impasse. By 1pm we completed the remote advice session, requested clarification on a bonus clause, and issued the signed certificate to HR, all within the same day.
Find full details on booking and timing at our Book ILA online page.
Why Choose Settlement Agreement Lawyers? (free to you, employer pays, same-day remote service, SRA regulated, negotiation experts)
Our solicitors specialise in fast, expert legal advice for employees across England and Wales facing flexible working disputes and settlement agreements. As SRA regulated solicitors, we guarantee your independent legal advice (ILA) is fully compliant, confidential and designed to maximise your settlement terms. We operate a same-day remote service—appointments via secure video or phone mean you do not need to attend in person, wherever you are based.
We routinely negotiate higher settlements, improved references, and clear waiver clauses. Your employer pays our fees directly, so advice is always free for you—there is no deduction from your compensation. Every agreement is carefully checked for hidden risks or tax surprises.
Choose a solicitor who focuses on settlement agreements. We understand the tactics and leverage points in flexible working disputes—and have a proven track record in securing better terms and swift, stress-free exits.
For independent recommendations from employees like you, read our Client success stories and see the difference our service makes.
Frequently Asked Questions About Flexible Working Requests
Do I have the right to request flexible working from day one?
Yes, since April 2024, all employees in England and Wales can make a statutory flexible working request from day one of employment. There is no longer a six-month service threshold, giving immediate access to statutory rights for new starters.
Can my employer reject my flexible working request for any reason?
No, your employer can only reject a flexible working request for one of the eight specific business reasons set out in law. If rejected for another reason, or without proper process, you may have a claim.
What should I do if my flexible working request is refused?
If refused, check that the reason is legitimate and that the process was followed correctly. You should appeal the decision in writing, and if necessary, seek further advice or lodge a grievance if you feel your legal rights have been breached.
Is it discrimination if my flexible working request is turned down?
It may be discrimination if the refusal disproportionately affects a protected group (such as women with childcare, disabled staff, or religious needs). Each refusal must be assessed individually—seek advice if you think the real reason relates to a protected characteristic.
Can I be dismissed for making a flexible working request?
No, you cannot lawfully be dismissed for making a flexible working request. Dismissal on these grounds could amount to automatic unfair dismissal, giving grounds to challenge your employer at an employment tribunal.
How do settlement agreements resolve flexible working disputes?
Settlement agreements allow employees and employers to resolve flexible working disputes quickly and finally, often with compensation, agreed references and clear exit terms, in exchange for waiving potential claims. Both parties avoid tribunal risks and delay.
Can I get tax-free compensation in a flexible working settlement agreement?
Yes, you can receive up to £30,000 tax-free as an ex gratia compensation payment if it is for loss of office or waiving claims and is not contractual pay. Always check how payments are broken down in your agreement.
Do I need a lawyer if I am offered a settlement agreement over flexible working?
Yes, independent legal advice from a qualified solicitor is a legal requirement for a settlement agreement to be valid. The employer must pay for this advice, so it is free to you, and protects your legal and financial interests.
Understanding your rights around flexible working requests is crucial—especially with the law now entitling all employees in England and Wales to apply from day one in a new job. This guide has set out the key steps for making a statutory request, what to expect from your employer’s process, the specific grounds on which a request can be refused, and your options if things go wrong. If your flexible working request leads to a dispute or a settlement agreement offer, it is essential to be clear about your legal rights, typical settlement payments, the tax position, and the risks before signing anything.
Our solicitors provide specialist support in flexible working disputes and settlement agreements, ensuring your position is protected and every payment is maximised. All advice is free to you, since your employer pays our fees, and you can speak to us via secure remote appointments on the same day you get in touch. As SRA-regulated settlement agreement experts, our solicitors explain every clause, highlight risks, and negotiate improvements for you.
For clear, confidential advice on your flexible working settlement agreement, call our settlement agreement solicitors now on 0800 054 1144 or book your settlement agreement advice online for a same-day remote ILA appointment.
