Working from home is now a normal part of running a small business in Australia. Whether your team works remotely full-time, a few days a week, or only when needed, you’ll quickly find that informal arrangements can create confusion (and risk) when expectations aren’t written down.
That’s where a clear working from home policy template Australia employers can rely on makes a real difference. A good policy helps you set boundaries, protect confidential information, manage work health and safety (WHS) obligations, and reduce misunderstandings about hours, equipment, and performance.
Below, we’ll walk you through what a strong work from home policy template Australia small businesses can adapt should cover, plus a practical template outline you can copy into your own document and tailor to your business.
Why Small Businesses Need A Working From Home Policy (Even If Your Team Is Small)
If you’re a small business owner, it’s easy to assume you can manage remote work on a “case-by-case” basis. In reality, remote work touches a lot of legal and operational areas at once, including safety, privacy, cyber security, and employment expectations.
A well-drafted working from home policy can help you:
- Set clear expectations about work hours, communication, availability, and responsiveness.
- Reduce HR issues by clarifying responsibilities around performance, leave, and workplace behaviour.
- Protect your confidential information (client data, pricing, internal documents, IP) when work is done off-site.
- Support WHS compliance by documenting safety expectations and reporting pathways.
- Manage equipment and expenses (who supplies what, what can be reimbursed, and what happens when employment ends).
- Create consistency so managers aren’t applying different rules to different people.
Practically, a working from home policy also helps you avoid “policy creep” where you end up making ad-hoc rules after something goes wrong. It’s much easier to manage expectations up front.
Working from home arrangements usually sit alongside your broader HR documents, such as an Employment Contract and a wider Workplace Policy set. They also need to be approached consistently with any modern award, enterprise agreement, and the National Employment Standards (NES) - including an employee’s right to request flexible working arrangements in certain circumstances (and the rules around how employers must respond).
What Should A Work From Home Policy Template Include In Australia?
A good work from home policy template Australia businesses use is practical first, but it should also cover the key risk areas that tend to cause disputes.
Below are the clauses and topics we typically recommend considering. Not every business will need every clause, but this list is a strong starting point.
1. Who The Policy Applies To (And What “Working From Home” Means)
Define whether the policy applies to:
- full-time remote staff
- hybrid staff (e.g. 2 days at home, 3 days in-office)
- casual/part-time staff
- contractors (if you intend to include them)
Also define what counts as “working from home” (for example, a home office, a coworking space, or another approved non-office location).
2. Eligibility And Approval Process
Spell out how remote work is approved and who can approve it. This can include:
- trial periods
- review dates
- factors you’ll consider (role requirements, client needs, performance history)
- the ability to review or change arrangements if business needs change
This is particularly important for small teams where one change to a roster can affect the entire workflow.
Important: if working from home is a contractual entitlement, part of an agreed flexible work arrangement, or required by an award/enterprise agreement, you generally can’t treat it as something you can simply “withdraw” at will. Even where it’s discretionary, changes should be handled carefully (and consistently) to avoid disputes.
3. Hours Of Work, Availability, And Breaks
One of the biggest issues in remote work is misaligned expectations about “being online”. Your policy should address:
- standard hours of work (and flexibility boundaries)
- time recording (if relevant)
- meal breaks and rest breaks
- core hours where the employee must be available
- response time expectations for calls/messages
Tip: if you allow flexible hours, define what “flexible” means in practice (for example, “you can shift your hours earlier or later with manager approval, as long as you attend scheduled meetings and complete agreed hours”).
4. Communication Standards And Meetings
Remote work runs smoothly when communication is predictable. Set rules around:
- required communication channels (email, phone, internal chat)
- meeting attendance expectations
- camera use (if required)
- handover and documentation processes
5. Work Health And Safety (WHS) For Home Offices
In Australia, working from home doesn’t remove WHS responsibilities. Even if you’re a small business, you should still treat home-based work as a work environment that needs basic safety controls.
Your policy can include:
- minimum workstation standards (desk setup, chair, lighting)
- a requirement to report hazards and incidents
- a process for workstation self-assessments (checklists/photos)
- guidance on taking breaks to reduce fatigue
Keep this section practical. You’re not trying to “inspect” someone’s home - rather, you’re documenting expectations and a process for identifying risks early.
6. Equipment, IT Security, And Acceptable Use
Remote work often means business devices and systems are used outside the office. A policy should address:
- what equipment you provide (laptop, phone, headset, monitor)
- who is responsible for maintenance and updates
- requirements for secure Wi-Fi and password use
- restrictions on sharing devices with family/housemates
- how confidential documents must be stored and disposed of
If you have staff using mobile phones heavily for work, a linked policy can help keep boundaries and privacy clear, such as a mobile phone policy.
7. Privacy, Monitoring, And Recording Rules
If you use monitoring tools (for example, activity logging, time tracking, or call recording for customer service), be very careful. This is an area where businesses can accidentally cross legal lines or damage trust quickly.
Your policy should be transparent about:
- what systems you monitor (and why)
- what data is collected
- how data is stored and who can access it
- any recording practices (calls, meetings) and consent requirements
In Australia, workplace surveillance and recording rules can be state/territory-specific (including workplace surveillance laws and listening device laws). What’s allowed - and what notice/consent is required - may depend on where the business and the worker are located, and how the monitoring is carried out.
As a small business, you may also have other workplace surveillance considerations (including cameras at premises). Where relevant, it’s worth understanding CCTV laws and how monitoring intersects with privacy expectations.
If your team makes or receives recorded calls, your policy should align with call recording laws that may apply depending on where parties are located and the context of the recording.
Most small businesses hold sensitive information even if they don’t see themselves as “data heavy” (think customer lists, supplier terms, marketing plans, or financial details).
Your working from home policy should reinforce that:
- confidential information must not be accessed by others in the home
- screens should not be visible to visitors (where possible)
- documents should not be printed unless necessary (and must be stored securely)
- data breaches or suspected breaches must be reported immediately
For many businesses, this works best alongside a clear privacy framework (including a Privacy Policy where your business collects personal information).
9. Expenses And Reimbursements
This is a common pain point. Your policy can clarify:
- what you will reimburse (if anything) and the process to claim
- what you won’t reimburse (for example, home internet unless agreed)
- approval requirements before buying equipment
Be careful not to make blanket promises you can’t sustain. If you intend arrangements to be role-by-role, write it that way.
Also note: reimbursements, allowances, and providing equipment can have tax and record-keeping implications (for example, FBT and substantiation requirements), and employees may separately seek tax deductions for home office expenses. It’s a good idea to keep your policy clear on what the business will cover, and get accounting/tax advice where needed.
A Practical Working From Home Policy Template Australia Businesses Can Adapt
Below is a template structure you can use as a starting point. Treat it as a guide rather than a one-size-fits-all document - your final version should match your actual work practices and any obligations in contracts, awards, enterprise agreements, the NES, or internal procedures.
Working From Home Policy - Template Structure
1. Purpose
- Explain why your business supports working from home and what the policy aims to achieve (productivity, flexibility, safety, confidentiality, consistency).
2. Scope
- State who the policy applies to (employees, contractors if applicable).
- Define “working from home” and “remote work location”.
3. Eligibility And Approval
- Confirm that working from home is subject to approval and may not be suitable for all roles.
- Set out the request process (written request, manager approval, trial period).
- Confirm that arrangements may be reviewed and varied for operational reasons or performance concerns, subject to any contract, award/enterprise agreement, or approved flexible work arrangement.
- Where relevant, cross-reference your process for handling formal flexible work requests under the NES.
4. Work Hours And Availability
- Set ordinary hours and any “core hours”.
- Explain timekeeping requirements (if applicable).
- Confirm break expectations and fatigue management.
Example wording:
“You must be contactable during your agreed working hours and attend scheduled meetings unless you are on approved leave or have manager approval.”
5. Communication And Performance
- List required communication tools and expected response times.
- Set expectations around deliverables, check-ins, and performance management.
6. Home Workspace And WHS
- Minimum workstation requirements (chair/desk setup, lighting, safe electrical use).
- Self-assessment process and reporting hazards/incidents.
- Confirm you may request reasonable information to ensure safety (without being intrusive).
Example wording:
“You must notify your manager as soon as possible if you experience a work-related injury, hazard, or safety concern while working from home.”
7. Equipment And IT Security
- List equipment provided and who maintains it.
- Cyber security rules (passwords, MFA where applicable, secure Wi-Fi, no shared devices).
- Rules for storage of documents and secure disposal.
8. Confidentiality And Privacy
- Reinforce confidentiality obligations (including client and employee information).
- Explain privacy expectations when handling personal information.
- Outline what monitoring (if any) occurs and how data is handled, and confirm you will comply with applicable state/territory surveillance and recording laws.
9. Expenses And Reimbursements
- Specify reimbursable items (if any) and the approval/claims process.
- State that unauthorised expenses won’t be reimbursed.
- Note that tax treatment may vary (for example, FBT may apply in some cases) and that employees should seek their own tax advice on deductions.
10. Reviews, Changes, And Non-Compliance
- Confirm the policy may be updated as the business evolves.
- Explain consequences of failing to follow the policy (for example, review of the arrangement and/or disciplinary action, depending on the issue and subject to any applicable industrial instruments and contract terms).
11. Acknowledgement
- Include an acknowledgement line for staff to confirm they’ve read and understood the policy.
Once you’ve drafted your policy, the key is to ensure it actually matches how your business operates day-to-day. A policy that says one thing while managers do another is a fast way to create employee relations problems (and messy disputes).
How Do You Roll Out A Working From Home Policy Without Creating Pushback?
The best rollouts focus on clarity, not control. Most employees want to do a good job remotely - they just need to know what “good” looks like in your business.
Step 1: Align The Policy With Contracts And Existing Practices
Check that your policy doesn’t conflict with:
- employment contracts
- position descriptions
- any existing flexible work arrangements you’ve promised (including arrangements agreed under the NES)
- any existing IT/security processes
If you’re updating contracts at the same time (for example, because you’re formalising remote work), it can be worth reviewing your Employment Contract terms and ensuring the policy is correctly referenced.
Step 2: Explain The “Why” In Plain English
When you introduce the policy, explain that it’s there to:
- make remote work consistent and fair
- protect clients and sensitive business information
- support safety and wellbeing
- avoid misunderstandings about availability
This approach usually lands better than framing it as “compliance”.
Step 3: Train Your Managers (Even If You Only Have One)
In small businesses, inconsistent manager behaviour is one of the biggest WFH risks. If one manager expects instant replies and another doesn’t, employees get mixed signals and performance management becomes harder.
Make sure whoever manages staff is clear on:
- how to approve WFH requests (and how to handle formal NES flexible work requests where they apply)
- how to manage underperformance remotely
- how to respond to safety or data incidents
Step 4: Get A Written Acknowledgement
A simple acknowledgement goes a long way. It doesn’t need to be complicated - many businesses include a signature line or HR platform acknowledgement confirming the employee has read and understood the policy.
Common Mistakes To Avoid With A Work From Home Policy Template
A template is a great starting point, but problems usually happen when the policy is copied and pasted without tailoring.
Here are common pitfalls we see small businesses run into:
- Being vague about hours and availability: “Be available as needed” is hard to enforce. Define core hours and response expectations.
- Ignoring privacy/monitoring concerns: If you track activity or record calls, you need a clear, transparent approach that is legally compliant and fair (including complying with any state/territory surveillance and listening device laws).
- Not addressing confidentiality in the home environment: It’s easy for sensitive information to be exposed through shared screens, printers, or family members overhearing calls.
- Forgetting WHS processes: You don’t need to over-engineer it, but you should have a documented way to manage risks and reports.
- Setting reimbursement expectations you can’t maintain: Be specific, and require approval for non-standard purchases. Also keep an eye on tax/FBT implications and make sure claims processes are clear.
- Not linking the policy to the rest of your HR documents: A WFH policy usually works best as part of a broader handbook approach, such as an employee privacy handbook and supporting workplace policies.
If you’d like the policy to do real work for your business (rather than just looking good on paper), it’s worth getting it reviewed and tailored to your operations, industry, and risk level.
Key Takeaways
- A clear working from home policy template Australia businesses can tailor helps you set expectations, reduce misunderstandings, and protect your business as remote work becomes normal.
- Your policy should cover approval processes, work hours, communication standards, WHS basics, confidentiality, IT security, and expenses.
- If you monitor staff activity or record calls, you should be transparent and careful - privacy, workplace surveillance, and listening device laws can apply and may differ by state/territory.
- Templates are helpful, but the policy must match your real practices (and align with the NES, employment contracts, awards/enterprise agreements, and other workplace policies) to be effective.
- Rolling out the policy with clear communication and consistent manager practices will reduce pushback and make compliance easier.
If you’d like help preparing or reviewing a working from home policy for your small business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
