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We’re in the midst of a major cultural shift to working from home in 2025. Many leading companies – from tech giants like Twitter and Square to innovative start-ups – now offer permanent remote or hybrid work options, compelling industries across Australia to adapt swiftly.
Working from home can be a great option to extend to your employees (if you haven’t already). Recent studies have demonstrated a strong correlation between flexible work arrangements, increased productivity and improved profit generation. For further guidance on transitioning to a remote model, check out our guide to starting a business from home.
While there is a wealth of cutting-edge productivity and collaboration software available to support your team remotely, it’s equally important to ensure your legal setup is robust and current.
As an employer, it is essential to recognise that wherever your employees are working – whether at home or in the office – you remain responsible for ensuring they are healthy, safe and fit for work. Updated Work Health and Safety (WHS) standards apply no matter the location, and it’s your duty to make sure these are met.
In this article, we’ll run through the key legal issues you need to be aware of when your employees are working from home in today’s evolving landscape.
Safety And Equipment
Generally speaking, before you implement a work from home arrangement, you should ensure that your employees’ home work areas meet current WHS standards – as outlined by Safe Work Australia. This may involve conducting a remote workstation assessment, either via a self-assessment checklist or a virtual inspection.
Depending on the nature of your business and the tasks involved, it is important that your employees are properly outfitted. This means ensuring they have access to the necessary technological tools – such as computers, phones, secure internet access, appropriate software, ergonomic furniture and monitors – to perform their roles effectively.
In fact, providing employees with the proper tools is one of the key considerations Fair Work takes into account when distinguishing between employees and contractors. Having these discussions before remote working arrangements commence is ideal; however, if you’ve had to make a rapid transition, it’s important to address any equipment shortages promptly. Do note that if employees must supply their own equipment, there may be tax implications – so checking the latest guidance from the ATO is advisable.
Who Can Work From Home?
A flexible work environment can enhance your business in numerous ways. In 2025, offering remote and hybrid work options remains a powerful way to retain top talent and boost overall employee wellbeing and satisfaction.
The Workplace Gender Equality Agency now reports that over 75% of businesses in the Australian private sector have successfully implemented flexible working arrangements and policies. These modern policies not only enhance employee morale but also contribute to the bottom line.
When introducing a work from home model, it is vital to review each employee’s enterprise agreement, Modern Award or individual employment contract to verify that remote working is an approved option.
Working From Home Under An Enterprise Agreement
Employees covered by enterprise agreements generally have broad entitlements regarding flexible working arrangements. In many recent agreements, updated clauses now address remote work conditions directly.
While the specifics vary across agreements, the right to request modifications in work hours, patterns and location is usually clearly set out. As an employer, you must consult with employees and make decisions in good faith, ensuring that any changes are documented in writing.
Modern Awards And Working From Home
If your employee is covered under a Modern Award, the National Employment Standards provide a right to request flexible working arrangements under specific circumstances – details of which can be viewed on the Fair Work website.
As an employer, you may refuse a flexible working request if it is reasonable and justified for your business operations. Nonetheless, many businesses now offer work from home options to all employees regardless of their classification.
What Legal Agreements Do I Need When Employees Are Working From Home?
As a business owner transitioning to a more flexible workplace, it is crucial to ensure that your policies and procedures reflect the new work arrangements. Documenting these changes in writing helps avoid future conflicts and misunderstandings.
A comprehensive Work From Home Policy is an excellent way to maintain compliance with WHS standards in a home office environment. Such a policy might include an annual review of each employee’s workspace, using a Display Screen Equipment (DSE) checklist – similar to those recommended by industry bodies – and require prompt reporting of any health and safety issues.
Do I Need To Make Any Changes To My Existing Employment Agreements?
When shifting to a work from home model, it’s essential that both you and your employees act in good faith with regard to their working arrangements. If you don’t already have individual employment agreements in place, now is the time to secure one, ensuring each party’s rights and obligations are clearly outlined.
If you already have existing agreements, make sure that any adjustments to job descriptions, remuneration rates or hours are updated in writing. For more insights on employment contracts and the importance of written agreements, see our employment contract guide.
Individual Flexibility Arrangements
To accommodate the unique needs of your team – whether it’s caring for children or managing other personal responsibilities – you might consider establishing an Individual Flexibility Agreement (IFA). This agreement provides additional room for adjusting work hours while ensuring that all minimum entitlements and protections continue to apply.
Many modern awards and enterprise agreements now incorporate flexibility terms, ensuring that IFAs support your employees without compromising their overall employment conditions. For more details on how modern agreements can support flexible work, check out our Modern Award analysis.
How Can I Make Sure My Confidential Information Is Protected?
Encryption
It is good practice to ensure that all confidential information is encrypted and securely stored – especially if employees are working in environments where others (such as partners or housemates) might be present. For added assurance, equip your team with secure login protocols and two-factor authentication to protect sensitive data.
Information Security Policies
If your business deals with sensitive data, implementing a robust information security policy is invaluable. These policies bind all users to strict standards regarding software, hardware, data access and control. They can even form part of your client’s service agreements, which may require clients to sign waivers confirming remote working practices.
Other Things To Consider
While addressing legal considerations is essential when allowing employees to work from home, there are several additional factors you should keep in mind, including:
- Work/Life Balance: Here are some tips to maintain a good work/life balance, which not only improves work quality but can also reduce staff turnover.
- Insurance Policy: Ensure that your insurance policies are up to date. Even when employees work from home, you remain liable for injuries incurred during work activities.
- Tax Considerations: The ATO continues to offer a simplified working-from-home tax shortcut to help calculate additional expenses, so it’s crucial to stay informed of any updates.
- Collaboration and Communication: Managing a remote workforce can be challenging. Tools such as Monday, Asana and Slack are invaluable for maintaining high-quality communication and collaboration.
Promoting Mental Health Awareness In The Workplace
Promoting mental health in your business need not be complicated. Simply fostering open conversations and increasing awareness can help diminish the stigma associated with mental health challenges in the workplace.
It’s also beneficial to involve your employees in developing and fine-tuning mental health initiatives. When your team contributes to these conversations, you’re more likely to implement meaningful strategies that have a lasting positive impact.
Below are some ideas to help get you started:
Schedule Regular Catch-Ups
Regular catch-ups with your team, whether via virtual meetings or phone calls, help maintain strong relationships and a sense of connection. These sessions provide opportunities for debriefing after a challenging week or simply allow colleagues to chat and unwind.
Look Out For Warning Signs
Be proactive in monitoring changes in an employee’s demeanour. In a remote setting, subtle shifts in productivity or attitude may indicate that an employee is struggling, so keep an eye out for any warning signs.
Check In On Employees You Are Concerned About
If you feel an employee might need support, follow up with a one-on-one conversation to let them know you’re there to help. For tips on initiating sensitive discussions, check out HeadsUp.
Be responsive if an employee reveals they’re struggling. Collaboratively explore supportive measures – such as adjusting workloads, approving leave requests or extending deadlines – to help alleviate immediate pressures.
As a small business owner, it’s easy to focus all your attention on running your business. However, remember to take time for yourself, too. Balancing your own wellbeing is just as important as supporting your team.
In 2025, it’s more important than ever to regularly review and update your work-from-home policies and legal obligations to ensure they align with the latest regulatory changes and digital security requirements. Consulting with a legal professional can help keep your employment contracts and privacy policies fully compliant and tailored to your business’s evolving needs.
Need Help?
While navigating the work-from-home landscape can be challenging – particularly for industries new to remote work – it’s vital that you continue to meet your legal obligations as an employer.
If you’re seeking assistance to ensure your policies and agreements are up to date, or if you need help interpreting your employees’ Modern Awards and individual contracts, feel free to get in touch! Our friendly team is available for a free consultation on 1800 730 617 or at team@sprintlaw.com.au.
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