With recent shocks to the global oil and gas supply and fuel prices on the rise, you may already be receiving more requests from employees to work from home (WFH).

The Australian Government has developed a National Fuel Security Plan to manage supply. Should our status of Stage 2 be escalated, there is a possibility that decisions about WFH may be taken out of employer hands entirely.

So, do your flexible work policies and procedures stand up? 

For many of us, the possibility of needing to WFH again feels like déjà vu. The difference is that most organisations now have policies in place to manage requests and are better positioned to accommodate WFH arrangements. In many instances, those requesting to work from home are already doing so part of the time.

WFH falls under the banner of flexible work. It’s worth reviewing your current policies and processes to ensure they are compliant and fit for purpose. With this in mind, I’ve answered FAQs below.

Eligibility and Legal Requirements

Do I have to allow employees to work from home?

No, some work is simply not possible to perform from home (i.e. production workers or asset auditors). However, some employees have a legal right to request flexible working arrangements under the Fair Work Act.

Flexible working arrangements are broader than WFH, with examples including flexible start and finish times, compressed hours (i.e. 12 hour shifts instead of eight over fewer days), flexible rostering, taking rostered days off as 2 half days, time off in lieu or transitioning hours (e.g. from parental leave or into retirement).

Employers are required to genuinely consider both flexible work arrangements and WFH requests, and can only refuse on reasonable business grounds, such as cost, impact on productivity, or an inability to reorganise work.

Victoria has proposed a new rule that would potentially start on 1 September 2026 that would sit under the Equal Opportunity Act 2010 (Vic). If passed, employees would be able to request to WFH up to two days a week, with employers needing good reason to reject requests. If there’s a dispute, it can go to the Victorian Equal Opportunity and Human Rights Commission first, and then to VCAT if it still can’t be resolved.

Do small businesses have different obligations than larger employers?

No, there is no small‑business exemption to these rules. However, Victorian WFH laws will apply to small business next year rather than this year, from 1 July 2027.

Who has the legal right to request flexible working arrangements under the Fair Work Act?

Everyone has the right to request flexible work arrangements, according to Fair Work. However, employees with legal entitlements include permanent and casual employees who have worked with an organisation for at least 12 months (casuals must have worked regularly and systematically during that time and have a reasonable expectation of continuing) and are either:

• pregnant
• responsible for the care of a child who is school age or younger
• a carer (within the meaning of the Carer Recognition Act 2010)
• a person with disability
• aged 55 or older
• experiencing family and domestic violence, or
• providing care or support to an immediate family member, or someone they live with, because they are experiencing family and domestic violence.

It is worth noting State and Territory laws may give an employee a better entitlement. For example, anti-discrimination laws may require an employer to make reasonable adjustments for an employee with a disability, which can include WFH arrangements where appropriate, even where there is no standalone entitlement under the Fair Work Act. Also, an employee award, agreement or employment contract may also provide specific entitlements above and beyond the above.

What are "reasonable business grounds" for refusing a WFH request?

The Fair Work Ombudsman provide a list of reasonable grounds:

• A significant cost burden on the business. Such as new equipment or software that the company cannot reasonably afford. This usually isn't an issue for office staff using standard programs, but for roles needing high-memory PCs to run software or large files, it may be applicable.
• Negative impact on productivity or service delivery. This occurs when the role requires constant in‑person collaboration or immediate access to specialised equipment. Remember, collaboration is often possible online.
• Inability to reorganise work among existing staff. In production, warehouse, logistics, laboratory or asset inspection roles for example, essential onsite duties can’t be performed remotely.
• Lack of capacity to recruit additional staff. It may not  be  financially or operationally viable to hire someone to perform required onsite tasks if an employee is working from home.
• Work cannot be performed safely or effectively from home. Examples may include  safety or security risks in the home environment.
• Significant impact on customer service or business operations. Many roles involve face‑to‑face client interaction as essential to the business model.
• Incompatibility with operational requirements or peak periods. Similar to the above,  WFH during critical trading hours where onsite presence is necessary.

The pandemic poked holes in many employer justifications to have employees work on-site. It is therefore essential when developing policies to ensure grounds are reasonable and are applied consistently.

WFH Policy Best Practice

What should a WFH Policy include?

Organisations have different requirements for WFH. Some will have a specific WFH policy that incorporates health and safety requirements, while others will address WFH in their flexible work and workplace safety policies. Others may include WFH in site or role specific operating procedures.

The important thing is to have framework to support the decision-making process, that complies with legislation. This will include:

• Purpose and scope: who the policy applies to and when.
• Eligibility and assessment criteria: which roles can work remotely and how suitability is decided. For a flexible work policy, this is where you would outline the types of arrangements available.
• Request process: how employees apply, required information, and response timeframes under the Fair Work Act.
• Reasonable business grounds for refusal: clearly stated and consistent with legislation.
• Hours, availability and communication expectations: core hours, response times, meetings. Under the Fair Work Act, you must respond within 21 days and say whether you approve or refuse the request or set out agreed alternative arrangements. Before refusing a request, employers must discuss the request with the employee and genuinely try to reach an agreement.
• Detail how you will record the information: this can be in a formal document or a simple email. Key things to record include what the agreed change in working arrangements are, how long it’s intended to go for (ongoing, or a fixed period), when it will be reviewed and the process for dealing with any future changes.
• WHS requirements: workstation standards, risk assessments, incident reporting.
• Equipment, technology and support: what the employer supplies, security rules, data protection.
• Performance and monitoring: expectations, feedback processes, and conditions for reviewing or revoking arrangements.

Best practice for people leaders is to understand the organisations policy and flexible work options, and receive training that includes legislation requirements, how to have discussion with employees, document requests, set expectations, respond to requests, and monitor the success of the arrangement.

Should WFH arrangements be temporary or permanent?

WFH arrangements can be temporary or permanent depending on the role and business needs. Many employers use temporary or trial periods to assess suitability, safety and performance.

However, permanent arrangements are appropriate when duties can be performed remotely on an ongoing basis and there’s no operational detriment. It is worth noting that instability in relation to WFH arrangements may have a negative impact on recruitment, engagement and retention.

Where employment contracts have WFH arrangements, employee agreement is required to vary those arrangements – they cannot be overridden by policies. As such, it’s recommended that WFH arrangements are not included in the contract but rather the policy is referenced instead. Written approval to requests can then be provided in the context of the policy. This way, universal changes in policy to meet business needs apply to all flexible work arrangements. Again, adequate consultation and reasonable grounds are required.

Can I require employees to come into the office on certain days?

Yes, if it’s reasonable and consistent with company policies, employment contracts, applicable awards or enterprise agreements.

Employers can set attendance expectations to meet operational needs, support collaboration or ensure service delivery. However, if an employee has an approved flexible work arrangement, you must honour the agreed terms unless they’re formally varied.

Need help managing WFH in your organisation, we help organisations draft, review and implement policies. Learn more.