Fair Work Commission rules on work-from-home challenge for the first time


The Fair Work Commission sided with an employer asking an employee to return to the office 40 per cent of the time. Photo: Getty
The Fair Work Commissionâs decision to support a business challenged on its work-from-home policy may be a win for employers, but experts say it also provides clarity for those working remotely.
A workplace tribunal found that Maxxia, a salary packaging provider, had reasonable grounds to reject its employeeâs request to work remotely because it helped the employee meet the companyâs productivity targets, improve team culture and assist with training.
Dr Libby Sander, a workplace expert at Bond University, said the FWC would have taken into account performance and the employerâs request when making its decision.
âIn this case, the employer has a requirement of 40 per cent of the time in the office,â she said.
âThis employee was only working at or achieving 50 per cent of their productivity targets, so I think that decision also relates to that.â
The appeal to the Fair Work Commissionâs workplace tribunal was made possible because of the newly introduced Secure Jobs Better Pay workplace laws, which allows employees to appeal against an employerâs decision to refuse flexible working arrangements.
Dr Nataliya Ilyushina, an economist and a research fellow at RMIT University, said the Fair Work Commissionâs decisions will create guidelines for the future.
âIt gives a lot of clarity as to the process and whatâs wrong and whatâs right, outlining the situation where requests for flexible work or 100 per cent work from home is reasonable and allowed,â she said.
âFor example, it clearly states that a worker should be employed for 12 months on a full-time or part-time basis, and after that, theyâre entitled to request a flexible work arrangement.â
Pushing back
The concept of âover employment,â or holding multiple remote jobs at the same time, rose to prominence during the pandemic and has spread online as a way for workers to make bank at their employerâs expense.
Ilyushina said there has been much discussion within businesses about workers starting to take advantage of work-from-home arrangements.
âThere have been reports of people taking on two jobs for example,â she said.
âThe decision still has a lot of room for subjective judgment; whatâs reasonable for one person may not seem reasonable to the manager.â
She said the reality is there are many jobs that can be done completely remotely, but that can create disadvantages.
âThere is solid research and evidence that you are much more likely to be promoted if you work in the office and that is common sense â youâre more visible to your manager,â she said.
âThere is evidence that for workers who worked in the office before COVID and went to work from home, they improved their productivity. But for new hires that were hired straight into remote work, they werenât as productive.â

Experts say there are advantages to working in the office. Photo: Getty
Setting precedent
Although the decision tested the Secure Jobs Better Pay laws for the first time, Sander said it is important that the context of the situation is taken into account.
âThe employer wasnât being unreasonable. If they wanted the employee back in the office five days a week then perhaps it would have been a different comment,â she said.
âThereâs been a lot of doom and gloom either way with this particular topic, but I donât think we should read too much into it.â
She said there is an important role for office and work-from-home arrangements in the modern workforce.
âEmployees are in an employment relationship. There is a contract and these issues arenât new to working from home.â
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