Flexible Work Disputes on the Rise: Are You Compliant with the New Rules?

As hybrid and remote working models continue to reshape the Australian workplace, there has been a noticeable increase in disputes related to flexible work arrangements, with a growing number of cases being escalated to the Fair Work Commission (FWC).

To recap, legislative changes to the Fair Work Act 2009 took effect on 6 June 2023, significantly strengthening employees’ rights to request flexible work and placing more stringent obligations on employers.

Employers are required to:

  • Respond to requests in writing within 21 days
  • Genuinely consult with the employee about their request
  • Provide clear reasons for any refusal based on reasonable business grounds

Most significantly, the FWC now has the authority to resolve disputes where flexible work requests are refused or ignored, including through binding decisions that are legally enforceable. This marks a significant shift in how flexible work matters are managed in Australia.

Since the changes took effect, there has been a noticeable uptake in employees pursuing formal dispute resolution through the Commission. This highlights the need for employers to take these requests seriously and follow correct procedures.

To help you stay compliant and avoid unnecessary disputes, here are some practical actions your business should consider:

Review and Update Your Flexible Work Policy

Ensure your workplace has a clear, accessible policy that outlines:

  • Who is eligible to request flexible work
  • How requests should be submitted (in writing, outlining the proposed change and reason)
  • The steps the business will take to assess and respond

This supports compliance, clarifies expectations and promotes consistency.

Educate Managers and Supervisors

Frontline leaders must understand their legal obligations, including:

  • The 21-day timeframe for responses
  • How to conduct genuine consultation
  • What qualifies as “reasonable business grounds” for refusal

Providing basic training or guidance materials can significantly reduce the risk of disputes.

Create a Consistent Internal Review Process

Implement a structured approach to managing requests, including:

  • Proper documentation of all requests and responses
  • Clear rationale for decisions
  • HR involvement in sensitive or complex cases

This shows transparency and supports your defence if challenged.

Use Alternative Proposals Where Possible

If a request cannot be fully granted, consider:

  • A trial period to assess suitability
  • Adjusted hours or hybrid arrangements
  • Alternative flexibility options that still meet the employee’s needs

Demonstrating a willingness to explore options reflects good faith and strengthens your position.

Seek Advice Early

If you’re unsure how to respond to a request or foresee complications, seek HR or legal advice early. This can help you navigate the process confidently and avoid escalation.

As more employees become aware of their rights and as more disputes are referred to the FWC, it is essential that businesses are equipped with the right systems, policies, and training.

Being proactive, fair and transparent in how you handle flexible work requests will not only help you stay compliant, but also build a workplace culture that is inclusive, responsive, and future-focused.

At Allan Hall HR, we assist businesses in navigating flexible work obligations with confidence. Whether you need help reviewing or developing your policies, training your managers, or responding to specific requests, our experienced team is here to support you. Get in touch with us today at [email protected] or by calling us directly on 1300 916 764 to ensure your business remains compliant and prepared for the evolving workplace.

HR Support Centre Demo

We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.