Flexible Working and Hotdesking Policies

Flexible working is now an expectation rather than a perk, while hotdesking offers a practical solution to rising office costs. But making these work for your business—and keeping employees productive, engaged, and compliant with the law—isn’t as simple as shuffling desks. This guide takes you through everything UK small business owners need to know: from legal obligations and policy drafting, to tech, culture, and everyday logistics. By the end, you'll have the clarity and tools to build a flexible workspace that really works.

Flexible working refers to any pattern of working that deviates from the traditional 9-to-5, office-based model. In the UK, this encompasses remote work, hybrid arrangements, compressed hours, flexitime, job sharing, and more. Since April 2024, all employees have the legal right to request flexible working from day one of employment, following changes to the Employment Relations (Flexible Working) Act 2023. This marks a significant shift from the previous 26-week waiting period.

When an employee makes a flexible working request, you must deal with it in a 'reasonable manner'—this means assessing the advantages and disadvantages, holding discussions with the employee, and offering an appeal process. Employers can refuse requests only for specific business reasons, such as the burden of additional costs or the impact on quality or performance. ACAS provides a statutory Code of Practice which you should follow to avoid legal pitfalls.

It's important to recognise that 'flexible working' is not just about location. Time, scheduling, and even job structure are all in play. Employers who fail to engage seriously with flexible working requests risk not only losing talent, but also facing claims at an employment tribunal. Being proactive and transparent with your policy is the safest and most effective route.

Hotdesking is the practice of providing shared desks or workstations that employees use as needed, rather than assigning each person a permanent spot. This model has gained traction in the UK, especially among SMEs trying to reduce real estate costs and adapt to hybrid working patterns. With average office rents in London exceeding £70 per square foot (2023, Knight Frank), the potential for savings is significant.

The main advantages of hotdesking include optimised use of space, lower overheads, and encouraging cross-team collaboration. It can also support a 'paperless office' culture, which is increasingly important for data security and environmental reasons. However, drawbacks include the risk of employees feeling disconnected, challenges around equipment provision, and potential hygiene issues—a particular concern post-COVID.

The UK market has seen a boom in flexible office providers like WeWork, Regus, and Spaces, but even businesses with their own premises are adopting hotdesking internally. It’s crucial to set clear rules, provide adequate tech, and make sure policies align with health and safety regulations. Poorly implemented hotdesking can lead to resentment, lost productivity, and an increased risk of data breaches.

• Optimises expensive office space usage
• Supports hybrid and remote working patterns
• Reduces cleaning and maintenance costs
• Can foster a more collaborative culture
• May lead to lower employee satisfaction if poorly managed

A written policy is essential for clarity and legal compliance. It should set out who can request flexible working, how requests are handled, what forms of flexibility are possible, and the process for appeals. For hotdesking, detail the booking system (if any), rules for desk use, cleaning protocols, equipment access, and handling of personal belongings.

Make sure your policy references statutory rights under UK law, including the right to request flexible working from day one. It should also signpost to ACAS guidance and highlight how decisions are made—transparency reduces the risk of discrimination claims. For hotdesking, specify how you’ll ensure GDPR compliance when handling sensitive data in a shared environment.

Policies should be reviewed at least annually or after significant changes to working patterns. Involve staff in the process and consult with them about what works and what doesn’t. This helps build buy-in and reduces resistance to change. Remember, a policy is only as effective as its practical implementation.

Legal compliance is not optional—mistakes can be costly. Under UK law, you must consider all flexible working requests and cannot reject them on a whim. Only specific business reasons, such as detrimental impact on performance or inability to reorganise work, are allowed. If you refuse a request, you must explain your reasoning in writing and offer an appeal.

Discrimination is a real risk. Flexible working requests are often linked to caring responsibilities, disabilities, or protected characteristics under the Equality Act 2010. A blanket refusal, or policies that disadvantage certain groups, can lead to claims of indirect discrimination—potentially resulting in unlimited compensation at tribunal.

Hotdesking brings its own compliance challenges. Employers are responsible for health and safety even in shared or flexible setups. This means conducting Display Screen Equipment (DSE) assessments, ensuring workstations are ergonomically sound, and maintaining cleanliness. Data security is also critical—shared desks must not lead to confidential information being left unsecured.

• Respond to requests within 2 months (statutory requirement)
• Document all decisions and reasons for acceptance or refusal
• Conduct regular DSE and health & safety checks in shared spaces
• Provide secure storage for sensitive paperwork and IT equipment
• Offer reasonable adjustments for disabled employees

Getting the logistics right is essential. For hotdesking, invest in a robust desk booking system—anything from a shared Outlook calendar to specialist apps like Skedda or Robin. Ensure every desk has access to power, Wi-Fi, monitors, and docking stations. Provide lockers or secure storage for employees’ belongings; this helps staff feel more at home and reduces the risk of lost or stolen items.

Cleaning protocols must be rigorous. Post-pandemic, employees expect regular cleaning and sanitisation of shared workstations. Some employers provide disinfectant wipes at each desk and schedule professional cleans between shifts. It’s also wise to supply adjustable chairs and monitor arms for ergonomic flexibility, and keep spare keyboards, mice, and headsets on hand.

For flexible working in general, review your IT infrastructure. Everyone should have secure, remote access to necessary files and systems—ideally through a VPN or cloud platform with multi-factor authentication. Regularly update cybersecurity training and have clear rules about data handling both in and out of the office.

Flexible working and hotdesking represent a cultural shift, not just a logistical one. Some staff will embrace the change, while others may feel uprooted or less connected to their team. Communication is critical—explain the reasons for the shift, how it benefits both the business and staff, and what support is available. Regularly ask for feedback and be prepared to make tweaks based on real-world experience.

Create rituals and anchor points to maintain belonging. For example, designate certain days as 'team days' when everyone is in the office, or set up regular virtual coffee breaks for remote workers. Recognise that not everyone will have an ideal home working environment—offer access to the office for those who need it, and consider subsidising equipment for home use if budgets allow.

Set expectations around availability and responsiveness. Flexible working should not mean being available 24/7, nor should it create 'presenteeism' pressure for those who prefer remote work. Encourage managers to lead by example—logging off on time, respecting boundaries, and focusing on output rather than hours at the desk.

• Hold open forums or surveys to gather staff input on new policies
• Celebrate early successes and spotlight flexible working champions
• Provide training for managers on leading distributed teams
• Allow teams to shape their own rituals and working agreements
• Keep channels open for concerns about inclusion or burnout

Technology is the backbone of any flexible working setup. Cloud-based collaboration tools like Microsoft 365, Google Workspace, and Slack enable seamless communication whether staff are at home, in the office, or on the move. Hotdeskers need plug-and-play setups—USB-C docks, wireless peripherals, and reliable Wi-Fi are must-haves.

Data security is a top concern. The Information Commissioner’s Office (ICO) requires that all personal data is kept secure, regardless of where your staff are working. This means enforcing strong password policies, using encrypted storage, and training staff never to leave sensitive documents or unlocked screens on shared desks. Consider implementing 'clean desk' policies and providing lockable storage for confidential items.

Regularly review your IT policy to cover remote device management, software updates, and incident reporting. If employees use their own devices (BYOD), set minimum security standards and consider mobile device management tools. Don’t forget about data disposal—confidential waste bins or shredders should be available in shared spaces and remote workers should know how to securely destroy documents.

• Adopt multi-factor authentication for all cloud services
• Install endpoint protection on every device, office or remote
• Use VPNs and encrypted file storage for sensitive data
• Provide staff with cybersecurity training tailored to flexible work
• Schedule regular audits of shared workspace security

Many small businesses rush into flexible working or hotdesking without proper planning and end up with disengaged staff, IT headaches, or legal trouble. One common mistake is underestimating demand for desks—if too many staff need a workspace at the same time, frustration and conflict can result. Use real data to inform your space planning and be prepared to adjust as patterns change.

Another pitfall is neglecting health and safety. Just because a desk is shared doesn’t mean you can skip DSE assessments or ignore ergonomic needs. Always provide adjustable equipment and encourage staff to report issues early. Cleanliness can also slip—set clear standards and make someone responsible for monitoring compliance.

Finally, don’t overlook the impact on inclusivity. Some employees—such as neurodiverse staff or those with disabilities—may struggle with the unpredictability of hotdesking. Be flexible: offer the option of a permanent desk if needed as a reasonable adjustment, and consult individuals about their needs before making changes.

• Base desk numbers on real occupancy data, not headcount
• Offer reasonable adjustments, including permanent desks where required
• Communicate changes well in advance and invite feedback
• Regularly review the policy and be willing to iterate
• Monitor for signs of exclusion or decreased morale

Many UK SMEs have successfully adopted flexible working and hotdesking, but the path isn’t always smooth. For instance, a London-based digital agency with 40 staff reduced its office footprint by 50% after moving to hybrid working and hotdesking, saving over £80,000 annually in rent and utilities. Staff satisfaction rose due to greater flexibility, but the business had to invest in new IT kit (£12,000) and lockers (£5,000).

In contrast, a Midlands professional services firm found that hotdesking led to a drop in morale among legal secretaries who valued their own space. They responded by designating a portion of desks as permanently assigned, which improved satisfaction at the cost of slightly lower space efficiency. The lesson: flexibility isn’t ‘one size fits all’—tailor your approach to your workforce’s needs.

The Federation of Small Businesses notes that while the upfront investment in tech and infrastructure can be significant, most SMEs recoup these costs within 12–18 months through savings on rent, utilities, and improved productivity. However, the non-financial benefits—retention, attraction of talent, and reduced absenteeism—often outweigh the numbers on the balance sheet.

Employment law, health and safety guidance, and best practice around flexible working are evolving rapidly. Subscribe to updates from ACAS, the HSE, and the Information Commissioner’s Office to stay on top of changes. Review your policies at least annually, or whenever there is a major legal or operational change.

Engage with peer networks, such as the Federation of Small Businesses or local Chambers of Commerce, to learn from the experiences of others. Consider periodic external audits of your workspace and practices—many insurers now recommend this for compliance and risk management.

Remember, the goal is not just legal compliance, but creating a workplace that attracts and retains great people. Flexible working and hotdesking are powerful tools if implemented thoughtfully and reviewed regularly. Treat them as evolving elements of your business strategy, not just one-off projects.