Flexible working arrangements are now a core part of Australian workplaces. They help employees balance work with caring responsibilities, health needs, study, and other commitments - and they help employers attract and retain great people.
But the rules have shifted. Recent changes to the Fair Work Act mean you have clearer obligations, tighter timelines and stronger oversight if you refuse a request. If you’re wondering what’s new, what counts as “reasonable business grounds,” or how to update your documents and process, you’re in the right place.
This guide breaks down the key changes, your legal obligations as an employer, and practical steps to manage requests confidently and compliantly.
What Are Flexible Working Arrangements?
Flexible working arrangements are adjustments to an employee’s usual hours, patterns or location of work. They are designed to support employees to do their job while meeting personal circumstances.
- Different start and finish times (e.g. earlier starts, later finishes)
- Working from home on some or all days
- Compressed hours or split shifts
- Part-time hours or job sharing
- Temporary changes to days worked or rostering
These adjustments must be considered in line with the National Employment Standards (NES) in the Fair Work Act. Recent reforms have strengthened how employers must handle requests and expanded who can ask for them.
Recent Changes And Who Is Eligible
As part of the “Secure Jobs, Better Pay” reforms, significant amendments took effect that tighten the process and broaden eligibility.
What’s changed for employers?
- Expanded eligibility: Employees experiencing family and domestic violence (or supporting someone who is) and pregnant employees are now explicitly covered by the right to request.
- Stronger process obligations: You must consult with the employee, genuinely try to reach agreement, consider the consequences of refusal for the employee, and provide detailed written reasons if you refuse (in whole or in part) - all within 21 days.
- FWC oversight: The Fair Work Commission (FWC) has enhanced powers to deal with disputes about flexible work requests. Where appropriate, it can make orders to give effect to arrangements or require parties to take certain steps to resolve the matter.
Who can make a request under the NES?
An employee can make a request if they have at least 12 months of continuous service (or are a regular casual with a reasonable expectation of ongoing work) and meet at least one of these criteria:
- Parent or carer of a child of school age or younger, or a child with a disability under 18
- Carer (as defined under the Carer Recognition Act 2010)
- Has a disability
- 55 years or older
- Experiencing family and domestic violence, or caring for/supporting someone who is
- Pregnant
On top of the NES, modern awards or enterprise agreements may set out further rights or processes around flexible work, so it’s important to check what applies in your workplace.
Your Obligations When Considering And Responding
The law now sets clearer, step-by-step expectations on how you handle a request. The emphasis is on genuine consultation and transparency.
Step 1: Receive a written request
The employee’s request must be in writing and explain the change sought and the reasons for it. You should acknowledge receipt promptly and diarise the 21-day response deadline.
Step 2: Consult and genuinely consider
- Discuss the request with the employee and seek to understand their needs.
- Genuinely try to reach agreement on an arrangement that works for both of you.
- Consider the consequences for the employee if you refuse the request (in whole or in part).
- If the exact request can’t be accommodated, explore reasonable alternatives (e.g. different days, trial periods, or staggered hours).
Step 3: Respond within 21 days
You must provide a written response within 21 days. If you agree, confirm the details, including start date, duration (if temporary), and any review point.
If you refuse (in whole or in part), your written response must:
- Identify the part(s) of the request you’re refusing
- Give detailed reasons based on reasonable business grounds
- Explain any alternative arrangements you can offer
- Confirm that the employee may refer the matter to the FWC if they disagree
It’s good practice to keep consistent documentation across all requests. Many businesses standardise this through a dedicated Workplace Policy and manager guidance notes.
Manager readiness matters
Because the process is consultative, your people leaders need to be equipped to hold constructive conversations, understand “reasonable business grounds,” and document outcomes. If training is required, ensure managers know the basics of award coverage, rostering limitations and the 21‑day timetable. You can also reinforce these expectations in your Staff Handbook.
Refusing A Request On Reasonable Business Grounds
You don’t have to agree to every request. However, any refusal must be based on bona fide, reasonable business grounds and must be explained in detail.
Examples of reasonable business grounds
- Excessive cost: The change would create unreasonable expense (e.g. needing to hire an extra staff member where budgets don’t allow).
- Inability to reorganise work: Tasks can’t be redistributed among existing staff without causing significant disruption.
- Capacity constraints: There is no capacity to make the change (e.g. duties that must be performed on‑site when the request is for fully remote work).
- Significant impact: The change would significantly reduce efficiency, productivity or customer service.
- Recruitment challenges: There is no suitable replacement to cover required hours or critical functions.
These grounds need to be applied to the facts of the request. Generic wording isn’t enough. Show how the requested change would impact your operations, rosters, service levels, safety or costs - and that you’ve considered alternatives.
Practical tips for a defensible decision
- Evidence helps: Attach or reference roster modelling, cost estimates, job requirement analyses or safety assessments that underpin your decision.
- Trial periods: Where possible, propose a time‑limited trial with a review date. If the trial is unsuccessful, note why (with data).
- Individualised reasoning: Tailor your written response to the employee’s role, team and location - and note the consequences for them you considered.
If your contracts need to reflect flexibility frameworks (for example, location of work or hours expectations), consider updating your Employment Contract templates and related policy suite so decision‑making and written outcomes are consistent.
Updating Documents, Managing Risk And Next Steps
Aligning your documents and processes with the reforms reduces legal risk and helps your teams handle requests consistently.
Documents to review and update
- Employment Contract: Clarify usual hours, location of work, and how changes may be agreed. Avoid clauses that conflict with NES rights.
- Workplace Policy: Outline eligibility, how to make a request, consultation steps, timeframes, assessment criteria and escalation pathways.
- Staff Handbook: Centralise your flexible work process, WHS expectations for remote work, IT/security rules and manager responsibilities.
- Templates and checklists: Intake form, consultation notes, outcome letter (approve/refuse), alternative proposals, and review schedule.
Work health and safety still applies
Your WHS obligations continue wherever work is performed. If employees work remotely, set clear safety expectations (workstation set‑up, incident reporting, working hours and breaks). Reinforce your general duty of care in policy and onboarding materials.
Privacy, technology and communication standards
Flexible and remote work often rely on remote access, collaboration tools and clear communication practices. Make sure your policies explain acceptable use of systems, data handling, and any reasonable monitoring of work devices. If you plan to access workplace systems or inboxes, confirm the circumstances and protocols upfront, noting the guidance in employer access to employee emails.
Awards, contracts and change management
If a proposed arrangement requires permanent changes to hours, classifications or rostering, check any applicable award and ensure changes are captured lawfully. For more complex shifts to roles or hours, it may be worth working through a structured process for changing employment contracts and recording variations properly.
Build manager capability
- Provide simple scripts and checklists to guide consultation and “consequences for the employee” considerations.
- Run short refreshers on award coverage, rostering rules and the 21‑day timetable. If you offer paid learning, align with your approach to paid training.
- Encourage early escalation to HR/people leaders for non‑standard or high‑impact requests.
If you’d like an expert to review your framework end‑to‑end, our employment law services can help design a compliant, practical process tailored to your operations.
Key Takeaways
- The right to request flexible working arrangements has been strengthened - eligibility now clearly includes employees who are pregnant or affected by family and domestic violence.
- Employers must consult, genuinely try to reach agreement, consider the consequences for the employee, and respond in writing within 21 days.
- You can refuse requests only on reasonable business grounds, and your reasons must be detailed and evidence‑based, with any reasonable alternatives offered.
- The Fair Work Commission can deal with disputes about requests and, where appropriate, make orders to give effect to arrangements; the focus is on resolving the request rather than awarding compensation.
- Update your Employment Contract, Workplace Policy and Staff Handbook so your process is consistent, transparent and aligned with the NES.
- WHS, privacy and technology settings still apply in flexible and remote environments - codify expectations and keep robust records of requests and decisions.
If you’d like a consultation on setting up compliant flexible working arrangements or updating your workplace policies, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.
