Since June 2023, employees have had increased legal rights to request flexible work arrangements and employers have had greater obligations in responding to these requests.
Typically, flexible working arrangements involve changes to either working hours (e.g. different start and finish times), the location (e.g. working from home), or the pattern of work (e.g. job sharing or split shifts).
The Fair Work Commission has powers to resolve disputes over flexible work requests, and recent rulings by the Commission have highlighted the need for employers to properly consider a worker’s flexible-work request, including the employee’s personal circumstances and reasonable grounds for the employer’s refusal.
Let’s have a look at the details and what employers need to remember when considering and responding to requests for flexible work arrangements.
Employer obligations in dealing with requests for flexible work arrangements
Under the Fair Work Act, any employee who has worked for the same employer for at least 12 months has the right to request a flexible working arrangement.
Employers must discuss the request with the employee, and in responding:
- Make a genuine effort to find alternative arrangements to accommodate the person’s circumstances, and
- Consider the consequences of refusal for the employee.
Any refusal must be on reasonable business grounds. In effect, to refuse, the request must be detrimental to your business e.g. it’s too costly, would result in a significant loss in efficiency or productivity, would have a negative impact on customer service, or is impractical.
You need to be able to substantiate any claims and explain why it would be detrimental to the employee if they worked from home.
Employers are required to give the person a detailed written response within 21 days, stating whether they approve or deny the request.
If you refuse, your response must include:
- An explanation of the business grounds for refusing the request and how these grounds apply to the request.
- Other changes you are willing to make that would accommodate the employee’s circumstances (or that there aren’t any changes).
- Information about how to refer a dispute to the Fair Work Commission (FWC).
You and the employee can agree to a working arrangement that differs from what the person originally requested. If this happens, you need to confirm the agreed changes in writing within 21 days of the request.
Find out more about the rules around flexible work arrangements at fairwork.gov.au.
Recent Fair Work Commission rulings
Recent FWC arbitrations have clarified employer obligations when responding to employee requests for flexible working arrangements.
In October 2025, the FWC ruled Westpac had not provided a "reasonable business case" to refuse a part-time employee's request to work from home 5 days a week.
The employee lives nearly 2-hours' drive from the nearest Westpac corporate office and said they needed flexibility to be able to care for their 6-year-old children.
Westpac had denied the request, arguing that its teams worked more effectively if there was a certain level of office attendance. The bank also said it was unfair to grant the employee flexibility based on their choice of where they lived and the children's school, and that the partner was capable of playing a larger role in child care or they could afford to pay for it.
The FWC ordered Westpac to grant the applicant’s request, saying there was "no question" that the role could be performed "completely remotely" and that denying the request was "seriously prejudicial for the applicant and her family".
This follows an earlier FWC ruling that found another company was unable to demonstrate a likely detriment to the business that would impact its productivity and efficiency when they refused an employee's flexible work request.
The FWC advised that: “generic and blank HR answers are not sufficient alone to establish a reasonable business ground for refusing a request”. Employers must consider the employee’s personal circumstances and genuinely explain how and why such a request would be detrimental to the business.
Our advice
When weighing up requests for flexible working arrangements, you must ensure you consider the employee’s personal circumstances, genuinely try to find an alternative arrangement if you refuse, and to consider the impact a refusal would have on the employee.
Importantly, if you refuse a request, you should ensure that the refusal is based on reasonable business grounds and that you provide a genuine, detailed, and meaningful explanation.
You should also be mindful that if you don’t reach agreement with the employee on an arrangement, you may find yourself spending time before the FWC.
