A landmark Fair Work Commission (FWC) ruling has placed employers on alert, reinforcing that any refusal of a work-from-home request must be backed by genuine and reasonable business grounds.
The decision came after Westpac employee Karlene Chandler, a long-serving part-time worker, challenged the bank’s refusal to let her continue working remotely. Chandler, who moved to a regional area to better manage school pick-ups and care for her two young children, had successfully worked from home for years. When a new manager revoked her flexible arrangement, she took the matter to the commission.
No reasonable grounds
In its ruling, the FWC found Westpac failed to demonstrate reasonable business grounds for rejecting Chandler’s request. The bank argued that collaboration and face-to-face interaction were essential to team performance, and that Chandler’s personal circumstances, such as her choice of residence and childcare arrangements, should not determine her work flexibility.
FWC deputy president Thomas Roberts dismissed these arguments, stating there was “no question that Ms Chandler’s work can be performed completely remotely”. He noted her history of effective remote performance and the absence of evidence showing any loss of productivity or service quality.
Under the Fair Work Act, employees with more than 12 months of service can request flexible working arrangements for reasons such as parenting or disability. Employers must meaningfully consult with the employee and prove that any refusal is based on reasonable business grounds, such as excessive financial cost or a measurable drop in efficiency.
A clear message for employers
The Finance Sector Union, which represented Chandler, said the ruling sends a strong message that employers must take flexible work requests seriously. “This decision puts all employers on notice that they will need genuine business reasons to refuse,” said national secretary Julia Angrisano.
Employment law expert Giuseppe Carabetta from the University of Technology Sydney said the case underscores the need for employers to conduct individualised assessments rather than rely on broad company policies. “The commission expects a real evaluation of the employee’s role, circumstances and the practical impact of flexibility,” he said.
Maurice Blackburn’s employment special counsel Jessica Dawson-Field added that the ruling dismantles outdated assumptions about in-person work. “There are jobs that can be done remotely without detriment to colleagues, customers or outcomes. The commission clearly found this was one of them.”
Westpac said it would consider the ruling, reaffirming that its workplace policies aim to balance flexibility with collaboration.
The case is now seen as a pivotal moment in Australia’s work-from-home landscape, one that compels employers to treat flexibility as a right grounded in evidence, not a privilege open to discretion.
