Landmark Working From Home Term Commences for Clerical Employees

A significant new working from home (“WFH“) term will commence in the Clerks – Private Sector Award 2020 from next week, following confirmation by a Full Bench of the Fair Work Commission (“FWC“) of its earlier decision to introduce a dedicated framework dealing with WFH arrangements.

The new term represents one of the most significant developments in modern award regulation of remote work since the COVID-19 pandemic and may ultimately serve as a model for similar provisions across other modern awards covering white-collar employees.

The FWC’s decision follows an extensive review process, including research, consultation and submissions from employer groups and unions regarding the role of remote work in modern Australian workplaces.

Why the Change?

The FWC observed that a substantial proportion of employees covered by the Clerks Award regularly perform work remotely and that technological developments have enabled many clerical and administrative functions to be performed effectively outside a traditional office environment.

Research considered by the Commission indicated that WFH arrangements had become a common feature of clerical employment, delivering benefits for both employers and employees. Employees reported improved work-life balance and reduced commuting time, while many employers identified productivity and recruitment benefits.

Importantly, the Commission noted that employees covered by the Clerks Award are predominantly engaged in work performed using digital technology, making the award an appropriate starting point for introducing a dedicated WFH framework.

What Does the New WFH Term Provide?

The new provision introduces a formal mechanism for employees to request a WFH arrangement. However, unlike some proposals advanced during the proceedings, it does not create an automatic right to work remotely.

Instead, the framework is based on agreement between the employer and employee.

Key features of the new term include:

• employees may submit a request to work from home;
• requests must generally be made in writing;
• any approved WFH arrangement must be recorded in writing;
• employees may work from their home residence or another location approved by the employer; and
• employers retain the ability to determine whether a proposed arrangement is operationally suitable.

The Commission specifically rejected proposals that would have created a broader statutory-style right to request WFH arrangements similar to those found in section 65 of the Fair Work Act 2009. Instead, it adopted a more balanced framework focused on flexibility and mutual agreement.

What Does This Mean for Employers?

Employers with staff covered by the Clerks Award should review existing hybrid work and remote work arrangements to ensure they align with the new award requirements.

Many organisations already operate under informal WFH arrangements. The introduction of a dedicated award term means employers should consider whether those arrangements are appropriately documented and whether internal policies remain consistent with award obligations.

Employers should also be prepared to establish processes for receiving, assessing and responding to employee requests for remote work.

The decision does not prevent employers from requiring attendance at the workplace where operationally necessary. However, it does establish a clearer framework for discussing and documenting remote work arrangements with award-covered employees.

A Potential Model for Future Award Reform

While the new provision applies only to employees covered by the Clerks Award, the decision is likely to be closely watched by employers, unions and policymakers across a range of industries.

The FWC identified the Clerks Award as a suitable test case because of the nature of the work performed and the prevalence of remote work within the sector. The approach adopted by the Commission may influence future discussions regarding whether similar provisions should be introduced into other modern awards covering white-collar occupations.

The decision reflects the continuing evolution of workplace flexibility in Australia and recognises that remote work has become a permanent feature of many modern workplaces rather than a temporary response to the pandemic.

As WFH arrangements continue to expand, employers should ensure that their employment contracts, workplace policies and management practices remain compliant with changing workplace laws and award obligations.

If you have questions about how this decision may affect you as an employee or employer, please contact Nick Stevens or Evelyn Rivera.