Flexible work debate widens as Australia weighs right to work from home bill

A proposed Australian law giving employees the right to work from home for up to two days a week has sparked fresh debate, with advocacy groups warning the measure is too narrowly focused and could unintentionally create discrimination, as reported by ABC. 

The bill, introduced by the Greens last November, seeks to amend the Fair Work Act 2009 and has now been referred to a Senate inquiry. The inquiry is due to report back on August 27.

Submissions to the inquiry reveal a sharp divide between unions, advocacy bodies and employers over the future of flexible work in Australia.

Industry concerns

Several groups argued that flexible work extends far beyond simply working from home and should not be reduced to a single arrangement.

According to the Fair Work Ombudsman, work from home is only one of four recognised flexible work arrangements. Others include flexible start and finish times, split shifts and job sharing.

Eligible employees currently able to request flexible work include pregnant people, parents, carers, workers with disabilities, employees aged over 55 and people experiencing family and domestic violence.

Requests must be submitted in writing and explain both the changes being sought and the reasons behind them.

The Finance Sector Union said some employees had been asked to provide medical certificates in order to continue working remotely.

"The office mandates are not uniform across the industry, nor are the penalties for non-compliance," the submission read.

"There are some workers who were initially engaged in their role and were working from home full-time who are unable to work from the office.

"This includes workers facing untenable commutes, increased costs and an inability to make the office mandates work alongside their caring responsibilities, those with disabilities."

Productivity balance

The Productivity Commission said work from home arrangements have largely stabilised since the widespread shift triggered by Covid-19 lockdowns.

Around 36% of Australians currently work from home, with about half doing so between one and four days a week, according to the commission.

In its submission, the economic advisory body said hybrid work patterns appearing across Australia suggest employers and employees have already found a workable balance.

It noted that one to two days of remote work was the most common arrangement for full-time employees offered hybrid work in 2025. Most employers also planned to maintain those arrangements over the next two years.

The commission added that well-managed hybrid work had neutral to slightly positive impacts on productivity, particularly in white-collar industries.

"Thus, Australian employers and employees overall appear to have landed on sensible work-from-home arrangements," the Productivity Commission submission read.

"Suggesting that the process of experimentation, negotiation and adjustment described in the PC's 2021 report is largely working as anticipated.

"In this context, the need for a legislated right to request to work from home is not clear."

Divided response

While supporters of the bill argue legal protection is necessary to prevent rigid return-to-office mandates, critics say existing frameworks already provide enough flexibility for workers and businesses to negotiate arrangements.

The debate is expected to intensify as the Senate inquiry moves closer to delivering its findings later this year.