Flexible Working Arrangements – What Businesses Need to Know

Flexibility in the workplace is about giving both employees and employers more say in where, when and how work happens. It can take many forms: flexible start and finish times, compressed work weeks, time in lieu, part-time employment, job-sharing, working from home (or other remote locations) or a combination of these.

Who can request flexible working arrangements?

While any employee can ask for a flexible working arrangement, certain employees have a legal entitlement to request flexible working arrangements under the Fair Work Act.

Employees who have this legal entitlement include:

• Permanent employees who have worked with the employer for at least 12 months, and

• Regular casual employees who have worked with the employer regularly and systematically for at least 12 months and have a reasonable expectation of continuing to do so.

  
  

The request must be because the employee is:

• pregnant

• a parent of, or has responsibility for the care of, a child who is school-aged or younger

• a carer (within the meaning of the Carer Recognition Act 2010)

• a person with disability

• aged 55 or older

• experiencing family and domestic violence, or

• providing care or support to an immediate family member, or someone they live with, because that person is experiencing family and domestic violence.

  
  

What must employers do when they receive a request?

When an eligible employee submits a request, employers should follow a structured process:

1. The request should be in writing, specifying the changes (hours, pattern, location) and the reason for the change.

2. The employer should carefully consider the request, engage in genuine discussion with the employee about possible arrangements and any alternatives.

3. The employer must respond in writing within 21 days, either approving or refusing the request.

4. If agreed, the employer should document the agreed changes.

5. If refused, the employer must provide written reasons for the refusal, including an explanation of the “reasonable business grounds” for the decision.

   
   

On what grounds can an employer refuse a request?

An employer may refuse a request only on “reasonable business grounds”. Examples of what this may include:

• The requested arrangement would be too costly for the business.

• It would be impractical to reorganise other employee’s arrangements, hire additional employees or change other working arrangements.

• The requested arrangement would likely result in a significant loss of productivity or efficiency or a significant negative impact on customer service.

• The size, nature or structure of your business make the requested changes unworkable.

  
  

When refusing a request, it’s best practice to:

• Provide clear and specific reasons how the business ground applies in the employer’s context.

• Engage in genuine consultation with the employee about any possible alternative arrangements. If none can be identified or mutually agreed upon, clearly state that no alternatives are feasible.

  
  

Why processes matter

For a small to medium-sized business, having a transparent, consistent approach to flexible work requests is not just a legal compliance exercise - it’s a business advantage. The Fair Work Ombudsman’s “Best Practice Guide - Flexible Working Arrangements” highlights that such approaches can lead to:

• Higher job satisfaction and lower stress among your workforce.

• Reduced absenteeism and turnover, helping to retain staff and reduce recruitment/training costs.

• Enhanced ability to attract talented staff who expect modern work arrangements.

  
  

Conversely, failing to have documented processes or mishandling requests can expose your business to risks such as:

• Claims of unfair treatment or discrimination.

• Complaints to the Fair Work Commission if the employee believes the refusal was unjustified.

• Reputational damage or difficulty recruiting/retaining people in a competitive labour market.

  
  

Tip: You can access the Fair Work Ombudsman’s Best Practice Guide – Flexible Working Arrangements here.

Flexibility in the workplace is becoming increasingly sought after and for some employees, is a legal entitlement to request under the Fair Work Act.

For businesses, handling flexible working requests properly is not only a legal obligation but also a strategy to positively impact the workplace. By putting the right processes in place, you’ll be better positioned to support your staff, maintain productivity, and reduce risks.