Working from Home Losing Flexibility as Scrutiny Increases

Employee rights to work from home are being examined as society transitions into a post-pandemic world, leading to changes in flexible job arrangements.

In response to a request from Employment and Workplace Relations Minister Tony Burke, the Fair Work Commission initiated a review of the modern award in September, affecting around two million Australian workers.

This review aims to explore the possibility of including a provision for Australians to work from home in the award, as part of a broader evaluation of how workplaces can support employees in balancing work and caregiving responsibilities.

Following the impact of the 2020 COVID-19 pandemic, a significant number—up to 40 percent—of Australians continued to work from home regularly in 2022.

However, some major corporations have started to shift away from remote work practices.

In 2023, Commonwealth Bank mandated that its employees work from the office for at least half of their work hours, while Westpac and National Australia Bank requested their employees to return to physical workplaces for two to three days per week.

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Despite certain companies scaling back working from home policies, a discussion paper from the Fair Work Commission recognizes several advantages of remote work including increased job opportunities, reduced commuting time, and no decline in productivity in a hybrid work model where employees work remotely for part of the week.

Minister Burke highlighted that the objective of the review is to identify obstacles within the award system that hinder flexible work arrangements desired by both employers and employees.

He emphasized that the right to work from home should not be automatic and may not be suitable for all work scenarios, but should be considered in cases where it benefits both parties involved.

Prime Minister Anthony Albanese stressed the importance of finding mutually beneficial solutions, emphasizing the need for flexibility and practical measures to support workers and employers.

On the other hand, Opposition Leader Peter Dutton criticized the government’s focus on enshrining the right to work from home, suggesting it prioritizes union interests over those of workers.

A report from the Committee of Economic Development of Australia (CEDA) highlighted the positive impact of remote work on groups such as individuals with disabilities and mothers with young children, leading to increased opportunities for these demographics.

Despite these gains, there is a need to sustain these benefits in the future to ensure continued progress in remote work practices.