Creating A Work From Home Agreement

Remote and hybrid work are now a normal part of many Australian workplaces. Whether you’re a startup, a growing small business, or a larger company, chances are some of your team wants to work from home - a few days a week or fully remote.

Flexibility is great for recruitment, retention and productivity. But it also raises practical and legal questions: what hours will people work, what equipment will you provide, what are your health and safety obligations, and how do you protect confidential and client information outside the office?

The best way to manage all of this is with a clear, tailored Work From Home Agreement (also called a “Working From Home Agreement”). In this guide, we’ll cover what it is, how to set one up, what to include, and the key Australian laws that still apply when work happens off‑site.

If you’d like help drafting the right documents for your business and team, we’re here to support you so you can focus on running the business with confidence.

What Is A Work From Home Agreement?

A Work From Home Agreement is a formal document between an employer and an employee that sets the rules for working from home or another remote location. It sits alongside the employee’s core Employment Contract and your workplace policies, and it makes expectations crystal clear for both sides.

Typically, it covers:

• When and how often the employee can work from home (days, core hours, variations and review dates).
• Availability, communication and performance expectations - including KPIs or deliverables.
• Health and safety duties for both parties, including workstation and fatigue management.
• Equipment and expenses - who provides what, how repairs and replacements work, and what you’ll reimburse.
• Confidentiality, privacy and data security when accessing company systems from home.
• Insurance and incident reporting processes.
• How to change or end the arrangement and return to the office if required.

Importantly, this agreement doesn’t replace your employment contract or policies - it complements them and clarifies how those obligations apply in a remote setting. If your policies are due for a refresh, now’s a good time to review your workplace policy and staff handbook as part of the rollout.

How Do You Set Up A Work From Home Arrangement?

1) Assess Role Suitability And Team Readiness

Start by reviewing the role and the employee’s responsibilities. Some duties don’t translate well to remote work; others are a perfect fit. Consider how the team collaborates, how supervision will work, and whether client expectations can still be met.

Think about the sensitivity of your data, any regulatory requirements in your industry, and whether specialised software or hardware is required. Don’t forget ergonomics and wellbeing - long hours on a kitchen chair aren’t safe or sustainable.

Employees may also have a right to request flexible work under the Fair Work framework (for example, parents of young children, carers, employees with a disability, or those over 55). As an employer, you must consider these requests, consult with the employee, and provide a written response within 21 days. If refusing on reasonable business grounds, you need to explain those reasons and discuss other options. The Fair Work Commission can now deal with disputes about flexible work requests in certain circumstances, including making orders - so it’s important to follow the process fairly and document your decision.

2) Document The Arrangement

Once you’re comfortable the role is suitable, document the details in a Work From Home Agreement. Keep it consistent with your employment contracts and company policies, and make room for a trial period or review points so you can adjust after seeing it in action.

Make sure the agreement references the employee’s Employment Contract, clarifies which policy documents apply (for example, your privacy, IT and WHS policies), and states what happens if there is any inconsistency between documents.

3) Set Up Equipment, Tech And Support

Decide who provides equipment like laptops, headsets, monitors and ergonomic chairs. If you allow bring-your-own-device (BYOD), set minimum security standards and support boundaries. Spell out responsibilities for maintenance, repairs and lost or stolen devices.

Outline how the employee will access systems (VPNs, multi-factor authentication), password standards, auto‑lock settings and what to do if a device is compromised. An Information Security Policy and an Acceptable Use Policy are helpful here and should be referenced in the agreement.

4) Manage Work Health And Safety (WHS)

Your duty to provide a safe workplace extends to a home office. You should take reasonably practicable steps to identify and control risks, even though you don’t control the premises. Many employers use a home‑office self‑assessment checklist, photos of the workstation, or a virtual walkthrough to address risks like trip hazards, poor lighting, unsafe power boards and non‑ergonomic setups.

Include expected work hours, breaks, and how overtime is approved. Fatigue and psychosocial risks (for example, isolation and workload stress) need attention too. Make sure incident reporting processes are clear and that employees know how to raise hazards or injuries promptly.

5) Set Expectations For Availability, Communication And Conduct

Be specific about core hours, time‑recording expectations, and how the team will communicate (chat tools, daily stand‑ups, weekly check‑ins). Clarify response time expectations for messages or calls, and any required availability for client meetings or internal workshops.

Outline conduct standards for remote work - confidentiality at home, appropriate backgrounds for video calls, client etiquette, and how to handle visitors or family interruptions during work time.

6) Review, Adjust And Keep It Consistent

Remote arrangements evolve. Build in review dates to check what’s working, look at performance and engagement data, and address gaps. To keep things fair, apply consistent principles across similar roles, while allowing for reasonable adjustments for individual circumstances where required.

What Should Your Agreement Include?

Every business is different, but these clauses commonly appear in a Work From Home Agreement. Keep the language clear and practical so employees can follow it day‑to‑day.

• Scope and Duration: Identify whether it’s ongoing, temporary or a trial, and note review dates.
• Location and Hours: Specify the home address, core hours, breaks, how changes are requested, and any limits on interstate or overseas work.
• Availability and Communication: Set expectations for check‑ins, meetings, calls and response times, plus how to notify unavailability.
• Performance and Deliverables: Link to role KPIs or set measurable outputs, and explain how performance will be assessed remotely.
• Equipment and Expenses: List what the business supplies, any equipment allowance, how repairs and replacements work, and which costs you’ll reimburse (for example, part of internet or phone).
• Data Security and Confidentiality: Require use of company systems, secure Wi‑Fi, MFA, approved storage and disposal methods, and restrictions on printing or sharing. Many businesses pair this with an NDA where appropriate - for example, a Non‑Disclosure Agreement for contractors or collaborators.
• Privacy Compliance: State how personal and client information must be handled under your Privacy Policy, including incident reporting processes.
• WHS Responsibilities: Set workstation standards, require a safety checklist, outline incident reporting and cooperation with risk controls.
• Insurance and Liability: Explain workers compensation coverage and any limits on home contents insurance for company equipment. Require the employee to check their home insurance and strata or lease rules where relevant.
• Visitors and Client Meetings: If you permit client visits to a home office (many businesses don’t), outline conditions, safety and privacy controls.
• Compliance With Policies: Reference the policies that apply (for example, information security, IT use, WHS and expenses), and how breaches are managed.
• Changes, Suspension or Ending the Arrangement: Explain how either party can request changes, and when the business can require a return to office (for operational, performance or safety reasons).
• Dispute Resolution: Include a simple pathway to raise concerns and escalate internally before formal action.

Finally, make sure the agreement states it operates alongside the Employment Contract and your policies. If there’s ever a conflict, the agreement should explain which document prevails.

Which Australian Laws Apply To Remote Work?

Working from home doesn’t change your legal obligations - it just changes how you meet them. Here are the key areas to consider.

Fair Work And Flexible Work

Employees remain covered by the Fair Work Act and the National Employment Standards (NES), along with any applicable modern awards or enterprise agreements. If an employee requests flexible work, you must consult, genuinely consider the request, and provide a written response within 21 days. If refusing, you need reasonable business grounds and you should set out other options you considered. In some cases, the Fair Work Commission can deal with disputes about flexible work, including making binding orders.

Keep an eye on award or agreement rules about hours, overtime, allowances and breaks - they still apply when work is performed at home.

Work Health And Safety (WHS)

Under Australian WHS laws, you have a duty to provide, so far as reasonably practicable, a safe working environment. That duty extends to the home workspace while work is being performed. Reasonable steps include risk assessments, safe workstation setup, training, incident reporting procedures and managing psychosocial risks.

Workers Compensation

Injuries “in the course of employment” may be covered by workers compensation even if they occur at home, subject to your state or territory scheme and the circumstances. Notify your insurer if your workforce is remote or hybrid and confirm any requirements for documenting work locations and hours.

Privacy And Data Protection

If your business is an “APP entity” under the Privacy Act 1988 (Cth) - for example, most businesses with annual turnover above $3 million and some smaller businesses in certain industries - you must comply with the Australian Privacy Principles (APPs) when handling personal information. Remote work increases risk, so make sure staff follow your Privacy Policy, use secure systems, and report incidents quickly.

Under the Notifiable Data Breaches (NDB) scheme, APP entities must assess and notify eligible data breaches. While Australian law does not mandate a specific written plan for all businesses, having a practical Data Breach Response Plan is strongly recommended so your team knows what to do if something goes wrong (and some clients and standards require it).

Confidentiality And Intellectual Property

Confidential information and IP must be protected at home just as in the office. Restrict printing and local file storage, control USB use, and require secure disposal. Make sure your agreements and policies clearly assign IP created in the course of employment and reinforce confidentiality obligations.

Monitoring, Surveillance And Local Rules

Some states and territories regulate workplace surveillance, including monitoring computer use or location. If you use monitoring tools, ensure your approach is lawful and transparent. Also check lease, strata or body corporate rules - certain activities (like client visits) may be restricted in residential premises.

Essential Documents And Policies

Putting the right paperwork in place will make remote and hybrid work smoother, safer and more consistent across your team. Consider the following:

• Work From Home Agreement: The core document that defines the arrangement, expectations and boundaries.
• Employment Contract: Your baseline terms for role, pay, hours, leave, confidentiality and termination. Ensure it works hand‑in‑hand with the remote work agreement and is up to date - see Employment Contract.
• Workplace Policies: Consistent rules for WHS, IT use, expenses, leave, and conduct. If you maintain a staff handbook, review it for remote work scenarios - see workplace policy and staff handbook.
• Privacy Policy: Explains how personal information is handled, including access, storage and retention in a remote context - see Privacy Policy.
• Information Security Policy: Sets technical and behavioural controls for devices, networks, passwords, MFA, and incident reporting - see Information Security Policy.
• Acceptable Use Policy: Defines appropriate use of systems, data and devices (especially important if you allow BYOD) - see Acceptable Use Policy.
• Data Breach Response Plan: A practical playbook for containing, assessing and reporting suspected breaches - see Data Breach Response Plan.
• Non‑Disclosure Agreement (NDA): For contractors or external collaborators who may access confidential information remotely - see Non‑Disclosure Agreement.

Not every business needs every document, but most will need several. The goal is to keep your people safe, your data secure and your expectations consistent - while staying compliant with Australian law.

Practical Tips For A Successful Remote Work Policy

• Write it in plain English: Keep it short, clear and easy to follow. If people can’t understand the rules, they won’t follow them.
• Involve your team: Consult before rollout, especially on hours, communication and performance measures. It builds buy‑in and practicality.
• Train and onboard: Walk employees through the policy, demonstrate security measures and explain incident reporting - don’t just email a PDF.
• Measure and review: Track performance, engagement and security incidents. Use review dates to refine the arrangement.
• Keep it consistent: Apply the same principles across similar roles to support fairness and morale, while allowing reasonable adjustments where required.

Key Takeaways

• A Work From Home Agreement makes expectations clear and reduces risk when your team works remotely.
• Set up the arrangement in steps: assess suitability, document the terms, equip securely, manage WHS, and review regularly.
• Include hours and location, performance and communication rules, WHS responsibilities, equipment and expenses, confidentiality, privacy and data security, and how to change or end the arrangement.
• Your Fair Work, WHS, privacy and workers compensation obligations continue when work happens at home - follow flexible work request procedures and keep your policies current.
• Support your agreement with core documents like an Employment Contract, Privacy Policy, Information Security Policy and, where appropriate, a practical Data Breach Response Plan.
• Getting tailored legal advice early helps you implement remote work that’s compliant, consistent and scalable as your business grows.

If you’d like a consultation on creating Work From Home Agreements for your business, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.