Australian Workers Gain Legal Right to Request Work From Home

Clerical and administrative workers in Australia will soon have a legal right to request to work from home, following a ruling by the Fair Work Commission (FWC). The commission will update the awards for these workers to include a new term that takes effect next week. This decision has been described as 'historic' by labor groups.

The FWC rejected a request from the Council of Small Business Organisations Australia to delay the changes by six months. The business group had argued that small businesses needed more time to understand and implement the award changes, particularly with the help of payroll and workforce software providers, bookkeepers, and advisors.

However, the FWC's full bench, led by President Adam Hatcher, approved the insertion of the working from home term into the Clerks Award. The ruling specified that the work from home rights remain consensual, meaning they require agreement from both the employee and employer.

In instances where an employer refuses a work from home request, the grounds for refusal must be "at least ostensibly reasonably related to the legitimate business interests of the employer." The FWC noted that evidence did not support claims that requests were being refused on arbitrary, capricious, or discriminatory grounds.

Under the updated award, an employee can formally request to work from home or another approved location, such as a coffee shop, provided the employer agrees. The request should specify the days the worker intends to be away from the office and the pattern of flexible work location.

The FWC's full bench had previously acknowledged in August that working from home arrangements had become an "entrenched" feature of employment, particularly within the clerical and administrative sectors.

Business groups have welcomed the new award, calling it "historic" and highlighting that it empowers both workers and employers to negotiate arrangements suitable to their specific circumstances. They also pointed to this development as evidence that separate state-level remote work laws, such as those in Victoria mandating two days per week for full-time workers, might be unnecessary.

The Clerks Award covers a range of roles, including administrative assistants, receptionists, and bookkeepers, according to the Fair Work Ombudsman. The new clause is set to come into operation on October 26, 2026.

This ruling is part of a series of changes affecting Australian workers this year. In March, workers aged 18 to 20 in the retail, fast food, and pharmacy sectors began receiving full adult wages instead of discounted junior rates. The FWC's decision on adult wages is being phased in, with full implementation for all workers aged 18 to 20 by July 1, 2029. Junior rates for those under 18, or those aged 18 to 20 with less than six months' experience, remain unchanged.