What the Recent Work from Home Ruling Means for You

Working from home, it became the new norm for a while, and then the big employers decided returning to the office was in order for the majority of their staff.

Just when many employers thought they'd settled into a new normal with hybrid work, a landmark decision from the Fair Work Commission has shaken things up.

And if you manage a team or run a business, it’s time to pay attention.

This case has made headlines for good reason. It's the first of its kind since major updates to the Fair Work Act came into effect, and it's already sending a very clear message to employers: blanket return-to-office mandates won’t cut it anymore.

Let’s break down what actually happened, why it matters, and what you need to know now.

The Westpac Case: What Happened?

A long-serving Westpac employee, with 23 years under her belt, had been working from home successfully since 2017, well before the pandemic made remote work mainstream. She was also the primary carer of two young children and lived over two hours from the office.

When Westpac rolled out a company-wide hybrid work mandate, requiring staff to attend the office two days a week, she formally requested to continue working remotely based on her caring responsibilities. This is a legal right under the Fair Work Act for eligible employees. At first, her request was approved, then, without clear justification, it was withdrawn.

She took the matter to the Fair Work Commission. Westpac argued that in-office attendance was necessary for collaboration, mentoring, and team connection. But in reality, many of these activities were already happening online. Her team was spread across the country, huddles were held via Microsoft Teams, and mentoring was successfully delivered remotely.

The Commission found in the employee’s favour.

The Key Takeaways for Employers

1. Follow the Process
   This might sound obvious, but the basics matter. Employers have 21 days to respond to a formal flexible work request. Westpac missed that deadline, a significant procedural misstep that weakened their case. If your business receives a flexible work request under the Fair Work Act, it must be handled properly and promptly.
2. Blanket Policies Don’t Work Anymore
   The days of applying a one-size-fits-all approach to work arrangements are over. This case highlights the importance of assessing each request on its individual merits. A blanket rule, like "everyone must be in the office X days per week," won’t be enough if the employee has legal grounds to request flexibility.
3. You Need Solid Business Grounds to Decline
   It’s not enough to say “we prefer people in the office.” To legally decline a flexible work request, an employer must demonstrate genuine, reasonable business grounds. That could include a drop in productivity, a major impact on customer service, or a significant operational issue. But if an employee has already proven they can work from home effectively, as in this case, those arguments won’t stack up.
4. Existing Work Patterns Matter
   The employee had been working from home for years with no performance issues. This long-established pattern was a key factor in the decision. If a team member has been successfully working remotely, you’ll need a strong case to suddenly change that arrangement.
5. Care Responsibilities Carry Legal Weight
   The Fair Work Act allows eligible employees (such as those with school-aged children) to request flexible work arrangements. In this case, the employee was the primary carer, and her request was clearly tied to those responsibilities. That legal entitlement was a critical factor in the Commission’s ruling.

It’s Not a Free-for-All

Let’s be clear: this decision does not mean that every employee now has the right to work from home whenever they like. The ruling applies to specific circumstances, especially where an employee is eligible to make a flexible work request and follows the correct process. Each case will still be assessed on its own merits.

But what this case absolutely does show is that employers must take these requests seriously and follow due process. If a request is denied, it must be for valid, documented reasons that would hold up under scrutiny.

What Might Happen Next?

This ruling has opened the door to more employees challenging rejected work-from-home requests. Employers who haven’t handled these properly may find themselves facing similar challenges.

We’re also seeing broader changes on the horizon:

• The Fair Work Commission is reviewing a proposal to include a work-from-home clause in the Clerks Private Sector Award, which would further shape employer obligations
• Victoria is considering legislation to give employees the legal right to work from home two days a week, if their job allows it
• A recent tribunal ruling supported a tax deduction claim for expenses related to home office setup, which may have wider implications if upheld

In short: this issue isn’t going away.

What You Should Do Now

If your business has remote or hybrid arrangements, or you’re thinking of bringing people back to the office, now is the time to get clear on your responsibilities.

• Review your current work-from-home policies and ensure they align with legal obligations
• Respond to formal requests within the required timeframe (21 days)
• Consider each request individually and be prepared to back up any rejection with real business grounds
• Reassess existing hybrid arrangements if they were applied as blanket rules without considering individual circumstances

This is an opportunity to improve how flexibility is handled in your workplace, and to build trust, clarity and compliance into your team culture.

An Invitation
If you’d like to connect with other business owners, leaders and managers, I’d love for you to join us inside our free Facebook Group where you can connect with other like minded business owners, leaders and managers to discuss all things HR: https://www.facebook.com/groups/hrsupportaustralia