The Fair Work Commission’s recent ruling against Westpac has sent ripples through workplaces across Australia — and for good reason.

In a climate where hybrid work remains a hot topic, this decision reinforces that flexibility is no longer just a “perk” but, in certain situations, a legal right that must be handled carefully and fairly.

What Happened?

The case involved Westpac employee Karlene Chandler, a long-time staff member who had successfully worked from home for years. When Westpac introduced a policy requiring staff to return to the office for part of the week, Chandler formally requested to continue working remotely full-time, citing her caring responsibilities.

Westpac rejected her request, stating that in-person collaboration and attendance at “team huddles” were necessary. Chandler took her case to the Fair Work Commission (FWC), arguing that the bank failed to properly consider her circumstances.

The Commission agreed. It ruled that Westpac did not have “reasonable business grounds” for denying her request and had failed to properly follow the consultation process outlined under the Fair Work Act 2009.

Why The Decision Matters

This ruling doesn’t mean every employee now has the automatic right to work from home. But it does mean that employers must approach flexible work requests thoughtfully, transparently and on a case-by-case basis.

The FWC highlighted a few key lessons:

1. Generic justifications aren’t enough.
   Simply saying that “collaboration works better in person” or that “company policy requires office attendance” isn’t sufficient. Employers need to show specific, evidence-based reasons why remote work wouldn’t be suitable for that particular role.
2. Process matters as much as the outcome.
   Under the Fair Work Act, employers must respond to a formal flexible work request within 21 days and genuinely try to reach an agreement. A blanket refusal or failure to consult can breach the Act — even if there are legitimate operational concerns.
3. Individual circumstances count.
   Chandler’s proven track record working remotely and her family responsibilities strengthened her case. Employers must consider the employee’s personal situation, the nature of their duties, and whether their performance can reasonably continue outside the office.

What This Means for Businesses

For employers, this case is a timely reminder to review flexible work policies and ensure managers understand their obligations. If your business receives a request to work from home (whether full-time or hybrid), take the following steps:

• Document everything. Keep a clear record of the request, the consultation process, and your response.
• Assess the role, not the person. Focus on whether the role can be effectively performed remotely — not simply whether the company prefers office attendance.
• Communicate clearly. If you do refuse, provide detailed written reasons linked to legitimate business needs (such as customer service, supervision requirements, or technology limitations).
• Stay flexible. Consider trial periods, hybrid arrangements, or performance reviews to find a balance that works for both sides.

For Employees: Know Your Rights

Employees who meet certain criteria — for example, parents or carers, people with disabilities, or those over 55 — have a legal right to request flexible working arrangements. Employers can refuse, but only on reasonable business grounds.

The Westpac case also highlights that long-term successful remote work can strengthen an employee’s case. If productivity hasn’t suffered and the role doesn’t require face-to-face duties, there’s a stronger argument that full-time remote work is viable.

The Bigger Picture

As hybrid work continues to evolve, the Westpac decision serves as a reality check for all workplaces. It underscores that flexibility isn’t about convenience — it’s about fairness, process, and evidence.

For businesses, it’s an opportunity to reflect: are your flexible work policies genuinely adaptable to individual roles and needs, or are they one-size-fits-all? For employees, it’s a reminder that while flexibility can be requested, it must be supported by sound reasoning and open communication.

Handled well, flexible working arrangements can benefit everyone — improving staff wellbeing, retention, and productivity — while ensuring businesses stay compliant and competitive in a changing world.