Flexible working for parents and carers: a guide for managers in SMEs

For small businesses, supporting working parents and carers is not always straightforward. Owners and managers often have to navigate parental support with smaller budgets, leaner teams and little or no in-house HR. And even though small and medium-sized enterprises (SMEs) make up 99.4% of UK businesses, most of the guidance on parental support in the workplace is shaped around larger organisations.

But the recent 'Transition to Parenthood' study showed that flexible working is actually one of the simplest and most valued ways to support parents and carers in small businesses.

We spoke to Bianca Stumbitz, the research Project Leader at Middlesex University and Jane van Zyl, CEO at Working Families about the study and pulled together some tips on how to handle flexible working in SMEs, while still meeting business needs. You'll find them all in this blog, alongside expert advice from Thomas Fuller, Associate Lawyer at Omny Law on how to stay legally compliant as a manager handling flexible working requests.

 

Skip to:

 

• The Transition to Parenthood research

• What does flexible working actually mean?

• What are the benefits of flexible working in small businesses?

• Real-life examples of flexible working options in SMEs

• How can you make flexible working work in a small team?

• Flexible working legal rights and recent changes

• How to handle flexible working applications fairly

• Final tips and useful resources

 

What does the recent research say about supporting parents in SMEs?

 

Led by researchers from Middlesex University, the University of Leeds and the University of Manchester, in partnership with Working Families and the Fatherhood Institute, the 'Transition to Parenthood' study looked at what the transition to parenthood actually looks like in small businesses in the UK and what employers can learn from it.

This three-year study drew on surveys of 2,000 SME employers and 2,000 employees, as well as 160 in-depth interviews with managers and staff. It didn't just focus on policies on paper. It explored the day-to-day reality for parents and carers in SMEs, the pressures managers are dealing with and the kinds of support that employees value most. And all the findings have been turned into a practical toolkit for SME employers and employees.

One of the most revealing findings in the study was how important flexible working is::. employees valued informal flexible working (occasional adjustments) at 41.7% and formal flexible working (long-term arrangements) at 36.2% (see Factsheet on Flexible Working). In other words, flexible working was not a nice extra. It was one of the most valued forms of support small businesses could offer – closely followed by enhanced leave and pay for mothers (34.8%) and fathers (32.2%).

The research also found SME staff would accept a pay cut of 8 to 9% on average to work more flexibly, which shows just how valuable this kind of support can be.

Bianca Stumbitz, research Project Leader, says:

"Flexibility matters and is an area where SMEs really can shine. Our data has shown that it was the most valued type of support."

Bianca suggested that one reason flexible working came out ahead of enhanced leave and pay may be that many employees understood the realities of working in a small business. Rather than expecting smaller employers to match big-company benefits, they often placed more value on practical, day-to-day support that made work and family life easier to manage.

The study also pointed to the value of early planning and open communication before, during and after parental leave. It highlighted that informal support can work well in SMEs, but only when it's backed by trust and clear information about the support available. The key to successful flexible working is ensuring arrangements meet the needs of both the employer and the employee (see How to create a supportive workplace culture).

For managers in SMEs who want to support working parents and retain a talented team, this is a strong signal to look at the practical support you can offer, especially flexible working options that help employees stay in work, while keeping the business running smoothly.

 

What Breathe's flexible working data tells us

 

We took a look at the flexible working requests data in the Breathe HR platform to get a better picture of how common formal flexible working requests are in UK SMEs. Here's what we found:

In 2024, 1,430 flexible working requests were submitted through Breathe. In 2025, that rose to 4,103. That's an increase of around 187%.

That sharp rise suggests flexible working requests are becoming much more common. The April 2024 changes to flexible working law (outlined later in this blog) are likely part of the reason, but it also points to something bigger. Flexible working is becoming a more normal part of day-to-day people management in SMEs, rather than something unusual or exceptional.

Just as importantly, most requests are being approved. In 2024, 91% of flexible working requests submitted through Breathe were accepted. In 2025, that figure rose slightly to 92%. That suggests that even though more employees are asking for flexibility, most requests are still accepted, showing a willingness from SME employers to support workers. But this means that those not using a system like Breathe, are likely experiencing an increased volume of HR admin, which without the right tools can be difficult to manage and keep track of.

 

 

What does flexible working actually mean?

 

Flexible working means changing the hours someone works, the times they work, their place of work, or a combination of all three. In practice, flexible working can include part-time hours, flexi-time, compressed hours, job sharing, hybrid working, remote working, term-time working, shift swapping and adjusted start and finish times for individuals or the whole business.

Flexible working can be either informal or formal:

 

• Informal flexibility is often used for short-term or unexpected situations, such as leaving early to collect a sick child and making the time up later.
  

 

• Formal flexibility usually means a written request and a longer-term change to working arrangements.
  
  

Some examples of flexible working in small businesses can include:

 

• adjusted start and finish times to help with school or nursery drop-offs and pick-ups

• flexi-time, where employees work their contracted hours within a more flexible schedule

• compressed hours across fewer days

• hybrid or remote working where the role allows

• part-time hours, job sharing or term-time working

• shift swapping to cover planned absences

• informal flexibility for emergencies or family commitments

• phased returns after parental leave

 

Formal flexible working requests, once approved, are legally considered a permanent change to the terms and conditions of employment, unless you explicitly agree otherwise, for example as a temporary arrangement or trial period.

This distinction between formal and informal matters for managers. In smaller businesses, flexibility often starts with a conversation rather than a policy document. That can be a strength. But it can also create inconsistency if managers don’t know when an informal arrangement has turned into something more formal, or how to handle requests fairly across the team.

It's also important to remember that flexible working needs can change. What someone needs during pregnancy may not be what they need after a baby arrives. And what works in the first month back may need adjusting once childcare arrangements shift or a child starts nursery or school.

This is where line managers have a huge influence. The quality of flexible working conversations, the tone of the response and the willingness to explore options can shape whether an employee feels supported or pushed out.

 

What are the benefits of flexible working in small businesses for employers and employees?

 

It’s easy to assume flexible working is harder for SMEs. Smaller teams can’t always absorb absence easily. Some roles are customer-facing or place-based. And many smaller employers don’t have the time, budget or internal expertise to build polished people policies from scratch. This can prevent small employers from considering flexible working options and create a bad name for small employers in the job market, but it's only half the story.

SMEs can also have a real advantage here. Smaller teams often have closer working relationships, faster communication and more room for practical problem-solving.

Jane van Zyl, CEO for charity Working Families says:

"Small employers are not bad employers. You can be much more attuned to what your employees actually need and want, and in many cases offer more human, responsive flexibility than larger organisations."

Flexible working can help SMEs improve staff wellbeing, reduce absenteeism, retain experienced people and strengthen loyalty at relatively low cost.

And while in this blog we're focused on working parents and carers, as one employer from the Transition to Parenthood study put it, flexibility can create employee loyalty whether it's needed for children, horses or adult care. Support works best when it's part of a wider culture, not a special favour for one group.

For employees, the benefits can be just as significant. Flexible working can reduce stress, improve family dynamics and make it easier to share childcare with partners or family members, which can also help reduce childcare costs. It can cut commuting time too, giving people more time back for family life or more space in the day to focus on complex work.

That said, flexible working only works well when it's handled fairly. Some parents feel pressure to overcompensate for working flexibly, which can quickly lead to exhaustion. Others can become less visible when they work remotely or part-time, which may affect access to training, progression opportunities or promotions if managers aren't paying attention.

That is an important reminder for employers and managers. The benefits of flexible working aren't automatic. They're more likely to show up when flexibility is backed by fair workloads, regular communication and equal access to development.

 

Real-life examples of flexible working options in SMEs

 

If you're wondering what flexible working can actually look like in practice, there are plenty of small and medium-sized employers already making it work in different ways. Here's a few examples:

 

• Howarths HR, a business with 38 team members, has 25 different flexible working patterns in place across the team, alongside generous parental leave packages. This has helped them attract talent, retain people and keep growing.
  

 

• Marketing agency, Pursuit Marketing offers a four-day week as standard, term-time only roles and a scheme to automatically approve small changes to employee schedules. 37% of employees have formally approved flexible working arrangements. This has resulted in a 30% increase in productivity and a 500% increase in job applications. Employee satisfaction is over 99%, sickness absence is almost zero, recruitment costs have been reduced and staff retention rates are industry leading, with just 2.7% churn in 18 months.

 

• At Kanga Health, employees are encouraged from day one to consider how they can work flexibly to manage their commitments at home and at work, with a range of working arrangements on offer including home, hybrid, and remote working, as well as flexi or part-time hours. Contracts state the willingness to accommodate flexible requirements and the policy is detailed in the employee handbook. Employees are given complete autonomy to manage their working hours around their personal circumstances and can take time out of their working day for medical appointments.

 

• Independent Living Fund Scotland (ILFS) have a ‘life-friendly’ culture, where roles and responsibilities are clear but employees have choice and control over how and when they work. In fact, all staff at ILF Scotland work flexibly, including senior leaders. To support this approach, they use technology, train line managers in managing flexible teams, assess roles for flexibility before advertising and communicate flexibility clearly in job adverts. 100% of their staff report that flexible working enhances their life and the business has seen less than 5% staff turnover in 12 months. Sickness absence is also lower at ILFS than the public sector average, despite actively recruiting employees with long-term health conditions and impairments, who account for over 20% of the workforce.

 

• Cybersecurity company, SenseOn has built flexibility around where, when and how people work. Flexible working is the norm, with 100% of employees working flexibly to suit their needs and blocking time for childcare responsibilities is actively encouraged. This has positively impacted retention with 22% having been at the company for more than three years.

 

• Warmworks, the managing agent for the Scottish Government’s fuel poverty scheme, has a range of flexible working options open to all employees from day one, with around 35% choosing to flex their hours regularly, either formally or informally. Staff can also choose to work different shift patterns during term-time and school holidays. And all seven members of the leadership team lead by example, either by working remotely, compressing or flexing their hours, or taking time for volunteering and family commitments.

 

These examples are useful because they show that flexible working in SMEs does not have to mean one set model. It can mean different arrangements for different roles, teams and people, as long as the approach is thought through and works for the business.

 

How can you make flexible working work in a small team?

 

There's no single formula for making flexible working work in an SME. But the research and toolkit point to a few practical approaches that can make a real difference.

 

Start with the role, not assumptions

 

Before deciding whether a request can work, look closely at what the role actually involves. What tasks need to be done in person? What needs to happen at fixed times? What can be done more flexibly? A customer-facing role with fixed opening hours may have less room to move than a project-based role, but that doesn't mean there's no flexibility at all.

 

Ask employees to help shape the solution

 

Managers don't have to solve everything on their own. One of the most useful ideas in the research is to involve the employee in finding a practical arrangement. In one example from the study, an employer asked staff to suggest workable options and speak to affected colleagues before bringing the proposal back to management. This can lead to more realistic solutions and a greater sense of shared responsibility.

Jane says:

"Talk to the people that you're working with, see what they need, and how much of that you can supply. And sometimes no is an okay answer, but only when you've discussed possibilities with them. So, see what they can come up with. You don't have to be the person who comes up with all the solutions."

Build in cover where you can

 

Multi-skilling can help more than many small businesses realise. Training more than one person to cover key tasks reduces dependence on one role holder and gives you more room to offer flexibility, especially in operational, customer-facing or place-based roles where home working is not realistic.

 

Be consistent, even when arrangements differ

 

Consistency is one of the biggest challenges for managers. You don't need to give everyone the same arrangement. But you do need to be able to explain why two requests were handled differently.

Thomas Fuller, Associate Lawyer at Omny Law says:

"Inconsistent decisions can create legal risk unless there are meaningful differences between the cases. That's why it helps to have a clear process, keep notes and base decisions on the role and the business impact, rather than personal preference."

 

Make flexibility part of the culture

 

It's also worth widening the lens beyond mothers. The toolkit encourages employers to create space for fathers and non-birth parents too, and to normalise flexible working for men as well as women - especially since the research shows that for men in particular, informal flexible working is favoured over formal, long-term arrangements.

The strongest flexible working cultures support all staff. People may need flexibility because of elder care, illness, disability or other life pressures too. When managers recognise that everyone has a life outside work, the result is usually better morale, stronger retention and fewer team tensions.

Bianca says:

“It’s really mostly about open dialogue and about establishing this trustful relationship, characterised by give and take.”

 

Communicate clearly

 

Bianca told us that during her research, she realised that many employees knew more than their employers about their flexible working rights.

On the flip side, when employees didn't know what the business offered or what they were entitled to, Bianca told us:

"People spoke a lot about the fear of about negative consequences."

Employees often hesitate to ask for support at work, fearing negative consequences for their reputation or career opportunities. Particularly in smaller teams, they often also feel a strong sense of responsibility and do not want to be a burden to their employer or colleagues .

So, a good first step is making sure that you (and all other managers) know the legal entitlements and then communicating clearly with your team about what support is available to them and how to access it. That could mean talking openly about flexible working options, explaining what the process looks like, creating and signposting policies, and making sure employees know who to speak to if they need help.

It also helps to store your policies and resources in a secure system that's easy for people to access when they need to, like Breathe.

 

Make use of the Small Employers Relief

 

57% of the businesses in the Transition to Parenthood study said they need more financial support to cover the cost of parental leave, but only 30% knew about the UK's Small Employers' Relief scheme. That said - only 7% of those who had used the scheme found it helpful.

While this points to a wider need for more effective financial support for SMEs, it's also a reminder that some financial support does already exist for small employers that's worth exploring.

Small Employers' Relief allows businesses to reclaim 109% of statutory parental payments when it's total Class 1 National Insurance contributions are £45,000 or less in the last complete tax year before the employee's qualifying week. Other small employers who don't meet this requirement can sometimes claim back a lower amount (92%).

It's not applicable for Statutory Sick Pay but you can claim back on:

 

• Maternity pay

• Paternity pay

• Adoption pay

• Shared parental pay

• Parental bereavement pay

• Neonatal care pay

 

Find out more about Small Employers Relief here.

 

What flexible working employment rights do employers and employees have?

 

UK flexible working laws have changed a lot in recent years. A new law effective from 6

April 2024 grants employees in England, Scotland, and Wales the right to request flexible working from day one of their employment.

This means that, no matter the size of the business, all employees are now legally entitled to make flexible working requests as soon as they join the business.

Other law changes effective since 6 April 2024 include:

 

• Employees can make two flexible working requests in a 12-month period

• Employees no longer have to explain the impact of their flexible working request on the business

• Employees must receive a decision from the business on their flexible working request within two months

 

But here's what you need to know as a manager if a member of your team formally requests flexible working:

 

Any formal flexible working requests you receive from your team must be made in writing and should explain the change requested, when the employee wants it to take effect, state that it's a statutory request and say whether they've made a previous request.

Once a flexible working request has been made, you must deal with it in a reasonable manner and make a decision within two months, unless an extension is agreed.

You can refuse flexible working requests but you must consult with the employee before doing so and you can only refuse a request for one or more of the following permitted business reasons:

 

• 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 the employee proposes to work

• planned structural changes

 

You should never jump straight to a refusal and always follow a fair process (more on

that later). And take note - where childcare, caring responsibilities or disability are involved, Equality Act 2010 risks can also come into play, including sex or disability discrimination claims. If you're planning to refuse a flexible working request in a scenario like this, it's always best to seek HR or legal advice first.

It's also worth noting that further changes to flexible working employment rights will take effect in 2027 under the Employment Rights Act 2025. These changes are expected to make it harder to refuse a flexible working request without a clear and reasonable business case, and to require a written explanation of why any refusal is considered reasonable.

You can keep an eye on all the employment rights changes coming into force on our Employment Law Hub.

 

How to handle a formal flexible working request and follow a fair process

 

In our free employment law for line managers course on the Breathe Growth Academy, Thomas Fuller, Associate Lawyer at Omny Law, sets out a clear process for handling flexible working requests fairly and consistently from start to finish. 

 

 

Step one: ask for the request in writing

If an employee raises formal flexible working verbally, ask them to put the formal request in writing. If your business has a standard flexible working request form, ask them to use that. If you want a clearer audit trail from the start, software can help you keep requests organised, secure and easy to evidence. For example, Breathe's flexible working requests tool lets you log requests, track progress and keep everything in one place.

 

 

Step two: acknowledge the request and arrange a meeting

Once the request has been received, acknowledge it promptly and arrange a time to meet with the employee to discuss it, whether in person or remotely. Make sure they know they can be accompanied at the meeting.

 

Step three: consult properly on the request

In the meeting, ask the employee to fully explain the basis for their request. Talk through the potential benefits of the arrangement as well as any possible impacts or difficulties. The aim is to fully explore the request and give the employee the chance to respond to any concerns that are raised.

 

Step four: explore alternatives before making a final decision

If there are difficulties with the exact arrangement requested, don't jump straight to no. Thomas suggests exploring whether the changes could be trialled first so the business can assess the impact before making a final decision. You can also explore whether a modified version of the request might work better.

 

Step five: ask more questions if needed and avoid assumptions

One of Thomas's strongest warnings is not to make assumptions. If anything is unclear, ask the employee to explain their request further and carry out any further investigation needed before making your decision.

 

Step six: make the decision within the legal timeframe

A decision will usually need to be made within two months of the request being received, unless an extension is agreed.

 

Step seven: confirm the outcome in writing

If the request is approved, this is a formal variation to the employee's terms and conditions. Confirm the agreed changes in writing, including the date they will take effect, and ask the employee to sign to confirm their agreement. If you agree to a trial period instead, the outcome letter should explain how long the trial will last and should also be signed by the employee. If you refuse the request, explain the reasons clearly and make sure the refusal is based on one or more of the permitted business grounds. If your business doesn't already have a system or set template for flexible working responses, you can use Breathe's free template here.

 

Step eight: offer an appeal

Thomas says it is always good practice to give the employee the opportunity to appeal through an appeal process. If they do appeal, follow a similar consultation process to the one you used for the original request and confirm the outcome in writing, whether that means accepting the changes, offering a trial period or rejecting the appeal.

 

Step nine: keep a clear record throughout

Thomas also stresses the importance of keeping a good record of the whole process. That can include the invite letter, notes from the meeting, evidence of any further investigations and the final outcome letter. It's best practice to store everything safely and securely in one place, like an HR software, so that you can access it whenever you need it and wherever you're working.

 

 

Step 10: get advice if the request raises wider legal risks

Flexible working requests can become more complicated where disability, childcare arrangements or other caring responsibilities overlap with discrimination risks. In cases like these, Thomas recommends seeking HR or legal advice to make sure the request is handled fairly and reasonably.

For more free employment law line manager training from Thomas, head to the Breathe Growth Academy. 

 

 

A final word for managers

 

Flexible working requests are now a normal part of people management. They still carry legal risk if you handle them badly, but they also create a real opportunity to keep good people, build trust and strengthen your culture if you handle them well.

So start from a better question. Not “How do I say no to this?” but “What could work here?”. Small businesses don't need expensive perks to support parents and carers well. What they need is clear communication, fair process, practical flexibility and managers who are willing to have open conversations and look for workable solutions.

 

Useful resources to help you get started:

 

• Build your confidence further with Breathe's free Employment law essentials for line managers course on the Breathe Growth Academy, including a flexible working module led by Thomas Fuller and a free flexible working request response template.
  
  

• Explore the free Transition to Parenthood toolkit for more practical resources for SME employers.

 

• Contact Thomas and Omny Law for expert HR and legal advice for your business.

 

• See how Breathe can help you manage flexible working requests, keep meeting notes organised, store employment contract changes and make policies easier to access.