Flexible Working & Employment Law Changes Under Consultation for 2026
In early February 2026, the UK government launched a major consultation proposing radical changes to flexible
working rights under the Employment Rights Act that could have sweeping implications for UK businesses. The consultation, titled “Make Work Pay: Improving Access to Flexible Working”, seeks to make flexible working requests more accessible and easier for most employees, reversing traditional norms that sometimes disadvantage workers with caring responsibilities or long commutes.
In practice, these proposed reforms would require employers to handle flexible working requests more proactively and less conditionally than under previous rules, which could increase administrative burden and operational complexity for SMEs that rely on fixed schedules or shift patterns.
The consultation period runs until 30 April 2026, meaning organisations have an immediate window to provide feedback. Employers and HR professionals can participate to influence how new rights are shaped — potentially moderating duties where impacts could be disproportionate for small firms.
For business owners, the proposed changes represent both challenge and opportunity:
- On the challenge side, greater employee flexibility rights can mean adapting operations to support remote, hybrid or adjustable schedules, especially if flexible working becomes a default right rather than a negotiated privilege.
- On the opportunity side, improved flexibility can help businesses attract and retain talent, particularly as labour markets loosen and competition for skilled staff intensifies.
Given the cost pressures documented by the British Chambers of Commerce where recruitment difficulties and pay demands remain high, flexible working arrangements could offer an alternative retention and productivity tool. In the BCC’s latest survey, 70% of firms continue to report recruitment challenges, with workforce development investment remaining flat or cut.