Flexible Working Policies: Employer’s Legal Essentials In Australia

Flexible work is now a core expectation across Australian workplaces. Whether it’s remote work, flexible hours or compressed weeks, offering some flexibility can help you attract and keep great people, reduce absenteeism and lift productivity.

But flexibility also needs structure. A clear, written approach makes day‑to‑day decisions easier and helps you meet your obligations under Australian employment law. In this guide, we’ll walk through who can request flexible work, what the law requires from employers (including key changes introduced in 2023), what to include in a policy, and practical steps to roll it out across your business.

Importantly, a written flexible working policy isn’t legally mandatory in Australia. However, documenting your approach is strongly recommended because it drives consistency, helps managers respond lawfully and reduces the risk of disputes.

What Is A Flexible Working Policy?

A flexible working policy is a document that sets out how your business supports, assesses and manages flexible working arrangements. It tells your team what’s available, who can apply, how requests are made, how you’ll assess them, and how approved arrangements are monitored or reviewed.

Your policy can cover options such as:

• Flexible start and finish times - outside a fixed roster or within set “core hours”.
• Remote or hybrid work - working from home some or all of the week.
• Compressed weeks - the same hours over fewer days (e.g. four 10‑hour days).
• Part‑time work - reduced hours or days by agreement.
• Job sharing - two employees sharing one full‑time role.
• Staggered or split shifts - particularly relevant to customer‑facing operations.

Not every business can offer every option. Your policy should only include what your operations can support, with a clear process for applying and reviewing arrangements.

Who Can Request Flexible Work In Australia?

Any employee can ask for flexibility. However, under the Fair Work framework, certain employees have a legal right to request flexible working arrangements, and you must consider those requests and respond in a specific way.

Eligible employees include those who are:

• Parents or carers of a school‑aged child or younger
• Carers (as defined in the Carer Recognition Act 2010)
• People with a disability
• Pregnant employees
• People aged 55 or over
• Experiencing family or domestic violence (or caring for someone who is)

To be eligible, employees generally must have completed at least 12 months of continuous service.

Casual employees can also be eligible if they’ve been employed on a regular and systematic basis for at least 12 months and have a reasonable expectation of continuing employment on that basis.

These rules set the minimum legal standard. You’re free to be more generous than the law requires and accept requests from other staff - your policy should make that clear.

How To Handle Requests Lawfully (Including The 2023 Changes)

In 2023, important changes strengthened employees’ rights and clarified employers’ duties in the flexible work process. If you receive a request from an eligible employee, you must now follow a more structured approach.

1) Discuss The Request And Try To Reach Agreement

You’re required to discuss the request with the employee and genuinely try to reach an agreement that works for both sides. This may include exploring alternative arrangements if the original proposal isn’t feasible (for example, different days, a trial period or changes to start/finish times instead of fully remote work).

2) Respond In Writing Within 21 Days

You must provide a written response within 21 days of receiving the request. Your response should:

• Confirm whether the request is granted (and on what terms), or
• If refusing, set out the reasonable business grounds for refusal and how they apply to the request, and
• Address any alternatives you considered (and, if appropriate, offer them).

3) Reasonable Business Grounds For Refusal

You can only refuse a request on reasonable business grounds. Common grounds include:

• Excessive cost to implement the arrangement
• Significant negative impact on productivity, customer service or team performance
• Inability to redistribute work among existing staff
• Inability to recruit additional employees to accommodate the arrangement
• Practical limitations due to the nature of the role or the workplace

Your reasons must be specific, evidence‑based and tailored to the request (not generic). Keep detailed records of your assessment and discussions.

4) Dispute Resolution And The Fair Work Commission

The 2023 reforms also expanded the Fair Work Commission’s powers. If a dispute can’t be resolved, the Commission can now deal with it - including by making orders in some circumstances (for example, that an employer reconsider a request or make specified changes). Taking a careful, documented and consultative approach from the start is the best way to avoid escalation.

What To Include In Your Flexible Working Policy

Again, a written policy isn’t legally compulsory, but it’s the simplest way to apply the rules consistently and show you’ve handled requests properly. Consider including the following:

• Purpose and scope - why the policy exists and which employees it applies to.
• Available arrangements - list the types of flexibility your business can offer.
• Eligibility - reflect the legal categories and any broader company settings.
• How to apply - the request format, who to send it to, and what information to include.
• Assessment process - how requests will be considered, including consultation, potential trial periods and objective criteria.
• Timeframes - committing to respond in writing within 21 days.
• Reasonable business grounds - outline what they are and how they’ll be applied.
• Outcomes - how approvals are documented (including start date, review date, performance and communication expectations).
• Review, variation and end - when arrangements are reviewed, and how they can be varied or ended by either party.
• Privacy and confidentiality - how personal and health information will be handled.
• Safety - responsibilities for safe work, especially for home‑based workstations.
• Dispute process - internal escalation steps before external avenues are considered.

It’s also useful to include short, realistic scenarios (for example, a pregnant employee seeking temporary changes to hours; a team member requesting a hybrid pattern) to show managers and staff how decisions are made.

Rolling It Out Across Your Business (Contracts, WHS And Privacy)

Once you’ve drafted your policy, embed it into your everyday practices so it actually helps people and reduces risk.

Align Contracts And Your Staff Handbook

Make sure your policy is consistent with each Employment Contract and any industrial instrument that applies. Where flexibility is approved, document the arrangement in writing - often via a simple variation letter - so everyone is clear on hours, location, expectations and review dates.

Your handbook should reference the policy and explain where to find it. If you don’t have a current handbook, consider putting one in place with your key policies in one location, such as through a Staff Handbook Package.

Give Managers Clear Guidance

Train managers on the legal process (discuss, try to reach agreement, respond within 21 days) and how to assess operational impacts fairly. The more consistent your approach, the lower your dispute risk. If rostering is involved, ensure your processes align with legal requirements for employee rostering.

Work Health And Safety Still Applies

Your duty of care to provide a safe workplace applies even when the workplace is a home office or off‑site location. Build safety into your policy with self‑assessments, reasonable equipment expectations and clear reporting of hazards. For a refresher on employer safety obligations, see our guide on duty of care for employers.

Protect Privacy And Confidential Information

Remote and hybrid work can increase privacy and data security risks. Ensure your policy works alongside your Privacy Policy, IT security rules, and any bring‑your‑own‑device protocols. In some teams, it can also help to have an Employee Privacy Handbook that sets out practical do’s and don’ts for handling personal and sensitive information at home.

Keep It Consistent With Other Workplace Policies

Your flexible work settings should align with performance management, leave, conduct and anti‑discrimination policies. If you’re building or updating several policies at once, a tailored Workplace Policy suite can keep everything consistent and current.

Document The Paper Trail

Good records are your best friend if a decision is challenged. Keep copies of the request, notes of discussions, any risk or productivity assessments, the written response (including reasons and alternatives considered), and, if approved, the signed agreement and scheduled review date.

Practical Templates To Have On Hand

• Flexible Working Request Form and acknowledgment email/letter
• Assessment checklist (operational impact, safety, data, customer needs)
• Approval letter or agreement (including trial or review periods)
• Contract variation letter (where the arrangement changes core terms)
• Home workstation checklist and WHS self‑assessment

These don’t need to be complicated - they just need to be consistent, accessible and used.

Key Takeaways

• A written flexible working policy isn’t legally required in Australia, but it’s the simplest way to manage requests consistently and reduce disputes.
• Eligible employees (including pregnant employees) can request flexibility; you must discuss the request, try to reach agreement, and respond in writing within 21 days.
• If refusing, you need specific, evidence‑based reasonable business grounds, and you should address any alternatives considered.
• Casuals can be eligible if they’ve worked regularly and systematically for 12 months and reasonably expect continuing employment.
• Back your policy with WHS, privacy and data security measures, and keep it aligned with your Employment Contracts and staff handbook.
• Good templates, training and record‑keeping will make the process smoother and minimise the risk of Fair Work disputes.

If you’d like a consultation on drafting or reviewing your flexible working policy and related documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.