Fair Work remote work ruling: what every HR leader needs to know.

In a landmark decision for workplace flexibility in Australia, the Fair Work Commission (FWC) has ruled in favour of a long-serving Westpac employee who requested to work from home full-time. This Fair Work remote work ruling sets a strong precedent for how businesses must assess and respond to flexible work requests. For HR leaders and business owners, it’s a wake-up call: workplace policies must be carefully designed and backed by evidence to minimise legal risk. Let’s explore what this decision means for your organisation.

Fair Work Ombudsman – Flexible Working Arrangements

1. What Happened: The Westpac Work-From-Home Case

• The employee, who had worked for Westpac for many years in a part-time mortgage-operations role, requested a flexible working arrangement to work from home in order to manage school drop-offs and her long commute.
• Westpac declined, citing its hybrid model, need for in-office collaboration, use of callboards and training.
• The FWC found that the employee had a proven track record of remote work, and the business reasons provided by Westpac were not sufficiently evidenced to refuse the request.
• As a result, the FWC ordered that the flexible working arrangement be granted.

2. Why This Matters to Australian Businesses

For Employees

• The case reinforces that eligible employees now have stronger grounds to request flexible work (including full-time home work) under the FWC’s interpretation.
• Employees with proven remote-work success, long commutes or caregiving responsibilities may feel more confident making such requests.

For Employers

• This decision highlights that blanket return-to-office mandates may be challenged if individual employee circumstances and role feasibility aren’t properly assessed.
• Employers must have clear, documented business reasons for refusing a flexible-working request, not just general policy preference.
• HR teams must ensure that requests under the Fair Work Act 2009 (for flexible working arrangements) are processed within statutory timeframes, assessed on merit and have proper records.
• Small and mid-sized businesses must review hybrid/remote working frameworks in light of this ruling.

3. Key Lessons for HR & Business Owners

1. Assess the role, not just the policy
   • Does the role genuinely require in-office attendance? Can remote or hybrid performance be demonstrated?
   • The FWC found that the employee’s duties could be done remotely and she had done so successfully.
2. Document past remote-work performance
   • A strong precedent of remote work helps the employee’s case and signals credibility.
   • Employers should maintain records of performance, attendance, collaboration tools used etc.
3. Provide clear, substantiated business grounds for refusal
   • Reasons such as “team needs face-to-face” or “we use call boards” must be backed by evidence of impact from remote work.
   • Employers should review how collaboration tools (e.g., Teams, Zoom) can replicate on-site activities, and whether remote performance can be managed effectively.
4. Process the request properly and timely
   • Under the Fair Work Act, requests must be handled within 21 days (unless agreed otherwise).
   • Employers must engage with the employee, ask for further information if needed, consider the request, respond, and document the decision-making process.
5. Review and update flexible/remote work policies
   • Especially for SMEs, policy language should clearly outline criteria for remote/hybrid work, role suitability, performance expectations, technology requirements and review processes.

Remote Work Policy Template (Fair Work, or Fair Go templates)

4. Practical Steps You Should Take Now

• Audit your current remote/hybrid-working policy: Is it up to date? Does it allow individual assessment and evidence-based decisions?
• Review recent flexible working requests: Were any refused? On what grounds? Are these grounds properly documented?
• Gather remote-work performance data: For roles where employees already worked remotely, collect information on productivity, collaboration, outcomes, attendance.
• Train managers and HR staff: Ensure they understand the legal framework, how to assess requests under the Fair Work Act, and how to document decisions.

Conclusion

The Westpac-FWC flexible working ruling underscores that remote work is no longer a discretionary benefit, it can be a matter of right when the statutory criteria are met and the employer fails to provide sufficient business grounds. For HR teams, managers and business owners this means reviewing your frameworks, ensuring decisions are genuinely evidence-based and processing requests fairly and promptly. By putting strong systems in place now, you’ll reduce legal risk and position your organisation to succeed in the evolving world of work.

If you’d like help reviewing your remote/hybrid working policy or want to conduct an audit of your HR function, we’re here to help.