Flexible working arrangements in Australia are no longer a perk – they are an expectation. In 2025, Australian employers must navigate evolving workplace laws and employee expectations around flexible work, including remote work, flexible hours, and hybrid working models.
To stay compliant and competitive, business owners must understand their legal obligations under the Fair Work Act, implement compliant flexible work policies, and handle employee requests lawfully.
In this guide, our employment lawyers cover everything Australian employers need to know to manage flexible working arrangements with confidence.
Key Takeaways
Eligible employees have the legal right to request flexible working arrangements under the Fair Work Act.
Employers must respond to requests in writing within 21 days.
Requests can only be refused on reasonable business grounds.
A clear, customised flexible work policy helps ensure legal compliance.
Mishandling requests may lead to Fair Work Commission disputes and legal risk.
What Employers Need to Know About Flexible Working Arrangements
1. The Legal Right to Request Flexibility
- Under the Fair Work Act 2009 (Cth), certain employees in Australia can formally request flexible working arrangements, such as:
Working from home (remote work)
Changes to start and finish times
Part-time transitions
Employees are eligible if they:
Are the parent or carer of a child of school age or younger
Are a carer under the Carer Recognition Act 2010 (Cth)
Have a disability
Are aged 55 or older
Are experiencing family or domestic violence
Are returning to work after parental leave
You can fin out more on eligibility on the Fair Work Ombudsman website.
2. Common Types of Flexible Working Arrangements
Flexible working options include a variety of models tailored to employee needs and business requirements. These may include:
Remote or hybrid work
Staggered start and finish times
Job sharing
Compressed work weeks
Part-time or phased return to work
Employers should assess each request on a case-by-case basis and document decisions clearly.
3. Responding to Flexible Work Requests – Employer Obligations
Once a written request is received, employers must:
Respond in writing within 21 days
Approve or refuse based on reasonable business grounds
Valid grounds for refusal may include:
Significant cost burden
Negative impact on customer service
Inability to redistribute work
Reduced productivity or efficiency
Failure to respond properly can lead to Fair Work Commission disputes.
Important Reminder: One size does not fit all. Evaluate the operational impact before approving or rejecting requests, and document your decision-making process.
For guidance on bringing employees back to the workplace, see our article on return-to-office rules and what’s enforceable in Australia.
Drafting a Legally Compliant Flexible Work Policy
A workplace flexible work policy helps:
Standardise how requests are handled
Set clear expectations
Reduce legal risk
Support inclusive workplace culture
Key elements of a policy:
Eligibility criteria
Application process
Assessment and response steps
Responsibilities for both sides
WHS compliance for remote work
Legal Tip: Have your flexible work policy legally reviewed every 12–18 months to ensure it aligns with changes in employment law and best practices.
Legal Risks and Compliance Tips for Employers
Poorly managed flexible work arrangements can lead to:
Breaches of OHS/WHS obligations
Unintentional discrimination
Loss of confidential data
- Performance management issues
To manage these risks and ensure compliance, businesses should:
- Conduct WHS assessments and provide safety guidelines.
- Use secure data systems and update confidentiality clauses.
- Set clear KPIs and regular check-ins for remote staff.
- Apply decisions equally and fairly and document your reasoning.
Legal Tip: Keep records of any flexible work requests, responses, and reasons for approval or refusal. This is critical if the decision is later challenged.
Real-Life Example
A tech startup received a written request from a returning parent to work from home three days per week.
The business engaged Prosper Law. We helped:
Draft a tailored flexible work policy
Implement compliant procedures for reviewing requests
Train managers on lawful decision-making
The company avoided a costly legal outcome and improved employee retention through its more inclusive workplace practices.
To stay ahead of recent legislative updates, read our employer guide to Fair Work changes from 1 July 2025.
Frequently Asked Questions
Can I legally refuse a flexible work request if it affects business operations?
Yes, but only if refusal is based on reasonable business grounds, such as cost, workflow disruption, or client impact. You must provide a written explanation.
Legal Tip: “Reasonable business grounds” must be clearly stated in writing and based on objective, provable factors (not assumptions or personal preferences).
Who is eligible to request flexible working arrangements?
Employees with 12+ months of continuous service, or long-term regular casuals, who meet specific criteria under the Fair Work Act.
Do I legally need a flexible work policy?
A policy is not mandatory, but highly recommended. A well-drafted policy reduces your legal risk and ensures consistency across the business.
Legal Tip: Have your flexible work policy legally reviewed every 12–18 months to ensure it aligns with changes in employment law and best practices.
How do I manage work health and safety (WHS) for remote employees?
Employers are legally responsible for ensuring a safe remote work environment. This may include ergonomic assessments, incident reporting, and secure data handling procedures.
Can employees challenge a refusal of their flexible work request?
Yes. Employees can raise the issue with the Fair Work Commission if they believe the refusal was unreasonable or discriminatory.
For a deeper understanding of your obligations, explore our employer’s guide to the Fair Work Act.
