What are flexible working arrangements?
Flexible working arrangements include changes to hours, locations or patterns of work. These arrangements help support employees caring for a school-aged child or an immediate family or household member experiencing family and domestic violence. They also help support employees with a disability and long-term casual employees, for example.
Employees can request flexible working arrangements when they meet the eligibility requirements in the Fair Work Act. A written request needs to explain the change being sought and the reason for the request. Employers and employees benefit from documenting the written request and any agreed changes, so expectations remain clear.
What are my obligations as an employer?
Employees can request flexible working arrangements when they have completed at least 12 months of service with the same employer. This includes long-term casual employees who work regularly and systematically. Casual employees can request flexible work when they have an established pattern of hours for at least one year.
To be eligible under the provisions, an employee must also meet at least one category, including caring for a school-aged child or younger, having a disability, acting as a carer for a person with disability, being 55 or over or supporting an immediate family member experiencing family and domestic violence. An employee who is experiencing family and domestic violence can also make a request.
An employee’s request needs to be in writing and needs to explain the change being requested. The written request needs to show how the arrangement will help the employee manage their circumstances.
The Fair Work Act includes provisions dealing with requests for flexible working arrangements. These provisions describe timeframes and response requirements that apply when an eligible employee makes a request. Under the Act, a written response is to be provided within 21 days, indicating whether the request has been agreed to or declined.
Where a request is declined, the legislation refers to the inclusion of reasons based on business grounds. These grounds are described as relating to factors such as cost, operational considerations, or the potential impact on productivity, efficiency or service delivery. The specific grounds considered relevant depend on the circumstances of the workplace and the nature of the request.
In addition to the Fair Work Act, state and territory laws may include provisions that affect flexible working arrangements in certain situations. The application of these laws varies by jurisdiction. Maintaining written records of flexible working arrangement requests and responses is commonly referenced as a way of documenting how the process has been handled in line with applicable requirements.
If a disagreement occurs, the Fair Work Commission can mediate disputes about flexible working arrangements. Lodging a dispute often begins with a less formal process involving discussions such as conciliation or mediation. If the parties do not reach agreement, the Commission may use a formal process involving discussions such as arbitration and may issue binding orders.
Why flexible working arrangements matter
Flexible work became more common during the pandemic, when many organisations needed alternative arrangements to maintain operations. Since then, employees have come to value the increased autonomy that flexible working arrangements provide. Research shows that many employees prefer employers who offer flexibility in hours or location.
A significant proportion of employees express that they experience higher productivity when working from home, and report stronger engagement when they have some control over how they structure their week. Flexible working arrangements help employees manage caring responsibilities, health needs and personal commitments. For employers, this can lead to improved retention, lower absenteeism and a stronger employment brand.
Flexibility also helps attract skilled candidates who may need alternative patterns of work. When employers support flexible working arrangements, they create an environment where employees can manage their responsibilities while contributing effectively to the organisation.
Types of flexible working arrangements
1. Hybrid work
Hybrid work combines time in the workplace with time working remotely. Employees may have fixed office days or flexible schedules, depending on business needs. This arrangement focuses on outcomes rather than location.
Pros
Hybrid work offers autonomy and may improve productivity. It helps employees balance work with caring responsibilities, study or personal commitments. Many employees value the option to structure their week in a way that supports their well-being.
Cons
Hybrid work can make communication more complex when team members are not present at the same time. New employees may find it harder to build relationships. Regular meetings help maintain connection and help employees stay informed about workplace activities.
2. Remote working
Remote working allows employees to work from any suitable location. This may include a home office, a coworking space or another designated site. Remote employees may live in the same city or elsewhere in Australia.
Pros
Remote working reduces the need for office space and lowers associated costs. Employees often save commuting time and gain more control over their working environment.
Cons
It can be more difficult to identify when a remote employee needs support. Regular check-in meetings help maintain connection. Some employees find it challenging to maintain separation between work life and home life, so clear expectations help reduce this risk.
3. Flexitime
Flexitime allows employees to vary their start and finish times while maintaining their total hours. Employees may work longer days and shorten their working week, or they may adjust their hours to manage caring responsibilities or study commitments.
Pros
Flexitime helps employees manage personal commitments. It can reduce commuting stress because employees can avoid peak travel times. It also helps support employees who need flexibility around school or medical appointments.
Cons
Flexitime can make scheduling meetings more complex when employees have different patterns of work. Setting core hours when all employees are available helps maintain communication and collaboration.
4. Compressed work week
A compressed work week allows employees to work their contracted hours across fewer days. For example, an employee who works 38 hours a week can complete them across four extended days rather than five standard days.
Pros
Employees save commuting time and reduce costs associated with office attendance. Employers may lower utility costs when multiple teams work compressed hours.
Cons
Workloads may be harder to balance when team members are unavailable on different days. Employers need to ensure that business coverage remains consistent across the week.
5. Job sharing
Job sharing is a part-time arrangement where two employees share the duties of one full-time position. Each employee works part time and contributes to the shared role.
A share request from an employee needs to be in writing and needs to explain how the responsibilities can be shared. An employer responds to job share requests by meeting with the employees involved, reviewing the proposal and confirming the arrangement in writing. For example, an employer responds to job share requests by outlining how duties will be divided and how communication will occur.
Pros
Job sharing can expand the talent pool because two part-time employees may be easier to hire than one full-time employee. It can also lead to stronger ideas because two employees contribute their experience to the role.
Cons
Job sharing relies on strong coordination. It is less effective when the employees involved have incompatible working styles. Structured handovers help maintain consistency.
6. Part-time work
Part-time employees work fewer hours than full-time employees. Their hours may be spread across the week or concentrated into fewer days. Part-time work can accommodate employees with caring commitments, health needs or study requirements.
Pros
Part-time work expands the talent pool because many skilled employees seek roles that support a healthy work-life balance. Employers may also manage staffing costs more effectively when part-time roles meet business needs.
Cons
Part-time employees may spend less time in the workplace, which may limit opportunities for connection. Engaging work and regular communication help maintain involvement.
Implementing flexible work arrangements
When a flexible working arrangement is approved, the employer and employee need to discuss how the arrangement will operate in practice. This may involve reviewing hours, updating work processes, identifying remote working requirements or managing handovers in job-sharing roles. Regular meetings help identify challenges and help both parties assess how the arrangement is working.
Technology to support flexible working helps employees stay connected through collaboration tools or video conferencing. Clear expectations about communication help maintain productivity and support positive working relationships.
Common challenges and solutions
Employers may need to refuse a request when the arrangement affects business operations. Writing a refusal response requires clear reasons that relate to reasonable business grounds. These grounds may include significant cost or an inability to accommodate the request when employees request flexible working arrangements.
Disagreements about flexible working arrangements may occur. Employers can manage disputes through a less formal process involving discussions such as conciliation or mediation. If the issue continues, the Fair Work Commission may use a formal process where employers and employees can present information and seek a binding decision.
Regular review of workplace policies also helps maintain fairness across the organisation.
