New working from home (WFH) provisions under Clerks Award

The Fair Work Commission (FWC) has made a decision regarding working from home (WFH) rights under the Clerks - Private Sector Award 2020 (Clerks Award) after initiating proceedings in 2024 to consider, among other things, whether modern awards were ‘fit for purpose’ regarding flexible working arrangements.

The new clause is intended to formalise the process of requesting remote working arrangement for those workers covered by the Clerks Award, and to facilitate mutually agreed flexible adjustments to certain award rules to reflect the practical realities of working from home.

Importantly, the changes do not grant workers an automatic right to work from home - employers are not required or obliged to approve WFH requests.

What the new provisions mean

The new clause comes into effect on Monday 26 October 2026, and provides that:

• An employee may request, and an employer may agree to, a WFH arrangement.
• A WFH request must be in writing and specify the proposed WFH days (which specifies the day(s) of the week, or the number, proportion or pattern of days they are seeking).
• A WFH agreement must set out: 
• The day(s) on which the employee can WFH.
• The location where work is to be performed when WFH.
• Any modified terms of the Clerks Award agreed to (i.e. changes or alterations to ordinary hours, changes to start and finish times, the timings of meal or rest breaks, or the payment of time off instead of overtime).
• The start date of the WFH agreement.
• The means by which the arrangement may be varied by agreement or terminated by either party (meaning the written agreement must record not only how the arrangement may be terminated, but also how it may subsequently be varied by agreement). 

A WFH agreement must be entered into without coercion or duress. Employers must keep the agreement as a time and wages record and provide a copy to the employee.

This Award provision does not affect an eligible employee’s rights and ability to request a flexible working arrangement (including WFH arrangements) under Section 65 of the Fair Work Act 200. A request under this section requires a business to respond appropriately, including basing any rejection of the request on ‘reasonable business grounds.’

The reasons behind the changes

The FWC developed this framework to bring clarity and structure to WFH arrangements under the Clerks Award. Key findings included:

• WFH arrangements are widespread.
• Employees who WFH are predominantly female.
• Many WFH arrangements are employer-initiated.

WFH is a well-established feature of clerical work - around two-thirds of employees covered by the Clerks Award can work from home, and only a small fraction of requests are refused.

However, many of these arrangements technically breach existing award rules designed for office-based work, such as continuous hours and set break times. The FWC found this widespread non-compliance needed to be addressed. The new clause aims to ensure the Clerks Award provides a fair and relevant safety net for modern work practices.

What businesses need to do now

It’s important for businesses to:

1. Review current arrangements
   Businesses with current arrangements for clerical, administrative or other eligible staff working from home should review the arrangements now, considering the new WFH provision under the Clerks Award. If requested by an employee and agreed by the employer, you should formalise these existing informal arrangements in writing in line with the new requirements.
2. Establish or update flexible working arrangement policies
   You should consider developing a policy which deals with the new Clerks Award provisions, including record management processes to ensure you meet the requirements to keep the agreement as a time and wages record, and ensure the employee receives a copy.
3. Manage WFH requests
   If the WFH arrangement alters or changes by agreement any of the permitted award provisions (such as ordinary hours or overtime), employers must ensure they are recorded appropriately in the written agreement as a time and wages record.
   Relevant allowances under the Clerks Award (namely uniform laundry, first aid and overtime meal allowances) all remain unchanged and cannot be varied under the proposed WFH Clause. These allowances, where applicable, will remain payable to an employee even if they are working from home.
4. Manage disputes
   Any disputes concerning requests for WFH arrangements under the clause may be dealt with under Clause 40 of the Clerks Award, ‘Dispute Resolution.’ Under Clause 40, the FWC can be requested to deal with a dispute through mediation, conciliation or voluntary arbitration. This means an employer can refuse a request by an employee for the FWC to arbitrate a WFH dispute.
   While a dispute is ongoing, work must continue in accordance with the Clerks Award and the Fair Work Act (i.e. an employee cannot work from home unless agreed by the employer even if a dispute is ongoing).
5. Establish if applicable to other workers
   The new provisions only apply to private sector workers covered by the Clerks Award, such as:
• Administrative assistants and receptionists
• Bookkeepers or accounts clerks (managing invoices, billing and payroll)
• Data entry operators

The changes have not been made to any other award at this time.

HIA continues to advocate against mandated WFH rights. Working from home can work well when it is genuinely negotiated between an employer and employee and reflects the practical circumstances of the business. 

To find out more, contact HIA's Contracts and Compliance team

Email us

The above is intended to provide general information in summary form. The content does not constitute specific advice and should not be relied upon as such. Formal advice should be sought by members and customers with respect to particular matters before taking action.