What Is a Flexible Work Schedule Policy? (+ Free Template)

A flexible work schedule policy outlines for employees an alternative to the typical 9–5, Monday–Friday workweek. It might allow for different daily start and end times or even a compressed four-day workweek. Employees who can customize their work hours can better manage their time and focus on their tasks.

If you plan on allowing a flexible work arrangement in your workplace, you need to create a proper flexible work schedule policy to ensure that expectations are clear. Download and customize our free flexible work policy example; plus, learn the types of flexible work schedules, as well as laws to keep in mind and other considerations.

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What to Include in a Flexible Schedule Policy

Flexible work schedules may only work for particular roles, which is why defining when and to whom it applies is necessary. Your policy should include the types of flexible work schedules available, who is eligible, and any probationary or renewable processes.

1. Types of Flexible Work Schedules

Define in your flexible work schedule policy the types of schedules that your company will allow for flexible work. Below are a few flexible work schedule policy types. Take note that not all will work for every company, and you may need to take some ideas from one example and some from another to build your company’s policy.

Flextime gives employees the ability to choose their working hours. Your company can either mandate a few core hours of work or set a schedule where everyone attends an all-staff meeting once per week. Beyond that, employees can do their work when they feel most productive, so long as they are meeting their deadlines.

This setup recognizes that each individual has different hours of working efficiency—and restricting everyone to the same schedule can limit their productivity and effectiveness. In some cases, employees are producing effective work less than half the time they’re on the clock. If your business lends itself to letting employees work when they are most effective, you may see an increase not only in productivity but also in employee engagement and morale.

Did You Know?: Some 56% of workers consider flexible work hours more important to them now than pre-pandemic.

If you decide to implement flextime into your business, it is a good idea to keep track of your employees’ hours to ensure they are continuing to work their full schedule.

A compressed workweek gives employees the option of putting their 40 hours in during fewer working days. For example, you may give employees the option to work four 10-hour workdays and have three-day weekends.

There can be substantial cost savings with a compressed workweek, particularly in overhead costs, such as electricity. The downside is that some clients and customers may not be able to get help during the three-day weekends. You could overcome that by having employees work staggered four-day workweeks—but then you lose out on the overhead cost savings of the office being shut down.

Hybrid work schedules can vary, but these generally include flextime options that combine some in-office work and some remote work. As an example, you may allow eligible employees to work a more traditional, in-office schedule three days a week, while enjoying a more flexible schedule working remotely two days a week. Or, you may provide the option for employees to work a handful of core hours in the office while starting the day early or finishing the day late from home.

Did You Know?: More than half (52%) of in-office workers said that working hour flexibility, such as that enabled by a hybrid model, made them more productive.

Hybrid work schedules can achieve the best of both worlds—colleagues get time to collaborate while in the office and time to focus when working remotely. Managers can check in on employees and their work progress regularly while still leaving some distance and not appearing as a micromanager.

Although these work schedule types can apply to both in-office and remote employees, a flexible work schedule is not the same as remote work or work from home. For more information on those, check out these resources:

How to Hire Remote Employees
Remote Work Statistics
Tips for Engaging Remote Employees

2. Who Is Eligible

Your flexible work schedule policy should clearly outline who is eligible to participate. If you are making flexible work schedules available to your entire staff, then state that in your policy. Otherwise, you need to outline who is eligible to participate; for instance, the type of job roles eligible.

Additionally, you want to make sure your policy states that eligibility may be on a case-by-case basis and may be determined by certain factors. For instance, in order to be eligible for flexible schedules, all work must be completed in a timely manner. A statement like the one below should be included.

Considerations for eligibility may include the impact on the department, whether the employee’s duties require their presence in the office or during certain hours, and the employee’s historical performance, among other factors.

When a Flexible Work Schedule Is Appropriate

If your company employs workers who do not have to sit at the same desk at the same time every day, such as with job sharing, then you may be able to offer more flexibility with your scheduling. By providing this benefit to employees, your company gains more loyalty and dedication from your team.

Alternatively, certain jobs may not be suitable for a flexible work schedule. Some duties require people to be available during certain times of the workday, so working off-hours wouldn’t be conducive to company productivity.

Showing a graphic of flex jobs vs non-flex jobs.

Depending on the type of industry in which your company operates, you may have workers whose job duties would make it difficult for them to work anywhere but your location. For these workers, the flexibility you may offer is quite limited, such as with their arrival and departure times.

3. Probationary and Renewal Process

Once you have laid out the terms and conditions of your flexible work schedule policy, you should notify employees of a probationary period. Typically, this would be a 6-month period where the employee would be on probation to determine if the working conditions are working for both the employee and the employer. After the probationary period, a review of the employee’s work performance should be evaluated every year to determine if the flexible work schedule should continue.

Consider the following language in your flexible work arrangement policy.

Upon approval of the employee’s flexible work schedule request, a six-month trial period will apply to assess the impact and effectiveness of the arrangement. After successful completion of the trial period, the flexible work schedule shall be reviewed at least annually to ensure continued success.

4. Disclaimer

It is advised to have a disclaimer in your flexible work schedule policy that notifies employees that not all positions are eligible for this arrangement. You can use the following disclaimer or customize it to meet your specific needs.

Flexible work schedules are not possible for all positions at [Company Name]. We do not intend the flexible work schedule options under this policy to be a universal employee benefit. The nature of the employee’s core duties and responsibilities must be conducive to a flexible work schedule without causing significant disruption to [Company Name].

Applicable Laws for Flexible Work Schedules

While there are no federal guidelines or restrictions on flexible work schedules, companies should still adhere to all other employment laws. Generally, what you do for one employee, you want to do for all.

Regardless, you must ensure that your company remains compliant, no matter which flexible work option you choose. Be sure to have your policy reviewed by an employment lawyer to ensure compliance with any labor laws.

When workers are distributed and not in a central location, that can create compliance headaches. Equal employment opportunity laws mandate that employers treat employees the same and not discriminate in wages, hours, and other conditions of employment. When implementing a flexible work policy, your company needs to ensure it is done without discriminating against any protected class.

Because some job duties will require a worker’s physical presence, they may not be eligible for flexible work schedules. Your company should include language in your policy that approval will be on a case-by-case basis. This decision should be made on nondiscriminatory factors, like an employee’s job duties and past performance.

Both federal and state wage and hour laws need to be reviewed before rolling out a flexible work schedule policy. If your company is offering a flexible schedule where employees work four 10-hour days, that could have implications for overtime. For example, California law requires overtime pay for any hours worked over eight in a given day for eligible employees. So, if you have hourly employees working in California, your company would need to budget for two hours of overtime every single day with a four-day workweek.

This may present a cost-prohibitive situation for your company. Reviewing your state’s regulations will help you catch legal hurdles like this before you get too far along in the process. You can find these laws on your state’s Department of Labor website.

When employees work in an office or central location, their employer’s workers’ compensation insurance coverage will provide them with benefits if they suffer an on-the-job injury. This is true for in-office personnel and remote workers.

If a remote employee is injured during working hours your company may still be subject to paying out claims, however, this is determined on a case-by-case investigation and depends on how the employee was injured. Regardless, understanding the ramifications and getting the necessary coverage is critical to ensuring your flexible work schedule program is successful.

Need help creating a flexible work schedule policy? Bambee has ready-to-use policy templates to help you stay compliant. It also offers a full range of services including payroll, benefits, and compliance. Visit Bambee’s website and start your free trial today!

Pros & Cons of a Flexible Work Schedule Policy

From employee retention to increased morale, there are many advantages to implementing a flexible work policy. However, flexible work schedules also have some disadvantages for employers too. Considering these pros and cons before implementing a policy will help guide you to know what you do and do not want in a policy.


PROS	CONS
Attracts and retains top talent	Lack of accountability
Improves employee morale	Can lead to decreased communication and teamwork
Reduces the need for special accommodations	Creates liability and security issues
Provides clear expectations	Drop in employee engagement for ineligible employees

Tips for Implementing a Flexible Work Schedule

One significant benefit of flexible work schedules is that you can create a schedule that works for your company’s needs and your employees’ desires. Ultimately, you want a cost-effective and productivity-inducing flexible schedule for your employees. Follow these tips when implementing your flexible work schedule policy.

Ensure Accountability – When implementing your policy, you should make sure your employees understand what productivity looks like. Let them know that they will still be held accountable for producing high-quality work in a timely manner, as well as being accountable for their KPIs and performance metrics.
Allow Autonomy – If possible, let your employees develop their own flexible schedules. You can review the schedule and adjust it to determine if the schedule works for your company and the position the employee has.
Track Hours – You should continue, or implement, tracking hours to ensure work is being accomplished and your employees are sticking to their flexible schedule.
Be Flexible – Some of your employees may not be eligible for a flexible schedule that allows them to work from home, however, try to be flexible and include every position at least in some capacity. For instance, you could allow essential workers to adjust their hours, as long as your business is covered during needed hours.
Train Managers – In order for your flexible schedule to be effective your managers should be trained to handle all performance and employee management issues.

Bottom Line

From increased employee productivity to creating a competitive advantage that attracts high-quality employees, workers want flexible work options that ultimately support your company’s success. Create a flexible work schedule policy that suits your company culture and makes your team the most productive.