Posts tagged #WFH agreement

Clerks Award 2026: New Working From Home Rules Explained for Australian Employers and Employees

Major changes to the Clerks – Private Sector Award 2020 will take effect from 26 October 2026, introducing a formal framework for requesting, agreeing to and managing working from home arrangements.

The changes recognise the growing importance of hybrid and remote working arrangements in Australian workplaces and provide greater flexibility in managing working hours and breaks.

However, an important distinction remains: the new provisions allow employees to request working from home arrangements, but they do not create an automatic right to work from home.

For employers, the changes provide an opportunity to review existing work from home policies and formalise arrangements that may not align with current award requirements.

This guide (this blog is general information and not Advice) explains what is changing, how employees can request working from home, what must be included in a written agreement, and how disputes are resolved.

What are the new working from home changes to the Clerks Award?

On 19 October 2026, the Fair Work Commission finalised a variation to the Clerks – Private Sector Award 2020 following its Modern Awards Review.

The variation introduces clause 5A – Requests for working from home arrangements, effective from 26 October 2026.

The new clause establishes a framework allowing employers and employees to agree on working from home arrangements, including certain modifications to ordinary working hours and the timing of breaks.

Key changes include:

  • A formal process for employees to request working from home.

  • Greater flexibility to agree on working hours and break times.

  • A requirement to document agreed working from home arrangements in writing.

  • Recordkeeping obligations for employers.

  • Access to the Clerks Award dispute resolution process when disagreements arise.

These changes are particularly relevant to administrative, clerical, reception, payroll and office employees covered by the Clerks Award.

Employers should confirm award coverage rather than assume that every office-based employee is covered.

For the official award, visit the Clerks – Private Sector Award 2020 on the Fair Work Ombudsman website.

1. How does an employee request to work from home under the Clerks Award?

Under new clause 5A.3, an employee requesting a working from home arrangement must submit their request in writing.

The written request must specify:

  • The particular days of the week the employee proposes to work from home; or

  • The number, proportion or pattern of days the employee wishes to work from home.

For example, an employee may request to work from home every Monday and Friday, two days per week on a rotating basis, or 40% of their ordinary working days.

Although the new clause does not require detailed reasons for an award-based request, employees should consider providing further information to assist their employer in assessing whether the proposed arrangement is practical.

Useful additional information includes:

  • The proposed work location.

  • Preferred working hours.

  • How usual responsibilities will be completed.

  • Communication and availability arrangements.

  • Any equipment or technology requirements.

  • The proposed start date and duration.

These additional details may assist discussions but are not all mandatory elements of the initial request under clause 5A.3.

Example: Request to work from home

Subject: Request for Working From Home Arrangement

Dear [Manager],

I would like to formally request a working from home arrangement under clause 5A of the Clerks – Private Sector Award 2020.

I propose working from home on Mondays and Fridays, with my remaining working days undertaken at the office.

My proposed working location is my home address, and I intend to maintain my usual responsibilities, availability and communication arrangements.

I would appreciate the opportunity to discuss this proposal and any practical requirements for implementing the arrangement.

Kind regards,

[Employee Name]

Can an employer refuse a working from home request?

Yes. The new Clerks Award provision allows an employee to make a request and an employer to agree, but does not require every request to be approved.

Unlike certain requests made under the National Employment Standards, clause 5A does not impose a general requirement to approve a request unless reasonable business grounds exist.

It also does not establish a specific response deadline for requests made solely under clause 5A.

However, employers must distinguish between a Clerks Award request and a statutory flexible working arrangement request under the Fair Work Act 2009.

An employee may be entitled to make a statutory request, which carries additional employer obligations.

2. What is the difference between the new Clerks Award provisions and the Fair Work Act?

This is one of the most important aspects of the 2026 changes.

The new Clerks Award working from home provisions operate alongside existing rights under the National Employment Standards.

Under section 65 of the Fair Work Act 2009, certain employees with at least 12 months of qualifying service can request flexible working arrangements if they meet specified eligibility criteria.

These circumstances include employees who:

  • Are pregnant.

  • Have a disability.

  • Are aged 55 or older.

  • Have caring responsibilities.

  • Are parents of, or responsible for caring for, a child of school age or younger.

  • Are experiencing family and domestic violence.

  • Provide care or support to certain family or household members experiencing family and domestic violence.

Eligible casual employees must also satisfy the applicable regular and systematic employment requirements.

What additional obligations apply to statutory flexible work requests?

Where an employee makes a valid request under the National Employment Standards, employers must:

  1. Respond in writing within 21 days.

  2. Discuss the request with the employee.

  3. Genuinely attempt to reach an agreement, including considering alternative arrangements.

  4. Consider the consequences of refusing the request for the employee.

  5. Only refuse the request on reasonable business grounds after meeting the required procedural steps.

  6. Provide the prescribed information in any written refusal.

Reasonable business grounds may include significant operational costs, impacts on productivity, practical staffing difficulties or negative impacts on customer service.

Employers should not assume that the more flexible Clerks Award process replaces their existing obligations under the Fair Work Act.

For further information, refer to the Fair Work Ombudsman's Flexible working arrangements guidance.

3. What must be included in a working from home agreement?

Under clause 5A.6, an agreement resulting from a request under the new Clerks Award provisions must be in writing.

It must identify six essential matters.

1. The agreed working from home days

The agreement must specify the days of the week, or the number, proportion or pattern of days, on which the employee may work from home.

For example, the arrangement might provide for two working from home days each week, subject to an agreed rotating schedule.

2. The approved work location

The agreement must identify where the employee will work remotely.

Working from home can include the employee's residence or another location chosen by the employee and approved by the employer.

Employers should assess the suitability of any proposed location, including work health and safety, privacy and information security considerations.

3. Any agreed modifications to award provisions

The agreement must identify any modifications to applicable award terms made under clause 5A.4.

These may involve:

  • Working ordinary hours non-continuously.

  • Greater flexibility over when ordinary hours are performed.

  • Adjusting the timing of rest breaks.

  • Adjusting the timing of meal breaks.

These modifications must fall within the scope permitted by the award.

4. Any facilitative agreements

The agreement must identify any facilitative arrangements made under clause 5A.5.

Subject to the relevant award provisions, these can involve:

  • Altering the spread of ordinary hours.

  • Making up time taken off during working hours.

  • Changing shift commencement and finishing times.

  • Taking time off instead of payment for overtime.

The new clause does not give employers unlimited discretion to modify award entitlements.

5. The commencement date

The agreement must specify when the working from home arrangement begins.

Employers may also document a review date or trial period as a matter of good practice.

6. How the arrangement can be varied or terminated

The agreement must specify:

  • How the arrangement may be varied by agreement between the parties.

  • How either party may terminate the arrangement.

Clear provisions help prevent disagreements when business requirements or employee circumstances change.

Additional agreement requirements

Under clauses 5A.7 and 5A.8:

  • The agreement must be genuinely made without coercion or duress.

  • The employer must retain the agreement as a time and wages record.

  • A copy must be provided to the employee.

Employers should review their existing arrangements and ensure they contain the necessary information.

4. Can employers change working hours and breaks for employees working from home?

Yes, within the limits of the new Clerks Award provisions.

Traditionally, the award has contained requirements governing continuous ordinary working hours, employer discretion over working hours, and the timing of meal and rest breaks.

The new clause allows employers and employees to agree on specified modifications to these requirements to better accommodate remote working.

Example: Flexible working hours

An administration employee who works from home may wish to commence work at 8:00 am, take an extended break for family responsibilities, and resume working later in the day.

The new provisions may enable the employer and employee to agree on a non-continuous work pattern, provided the arrangement complies with the applicable award requirements.

However, working from home does not automatically remove ordinary hours limits, overtime obligations, penalty rates or other minimum employment entitlements.

Employers must continue maintaining accurate time and wage records.

For additional guidance, see the Fair Work Ombudsman's Flexibility in the workplace resources.

5. How are working from home disputes resolved under the Clerks Award?

Disagreements may arise where an employer refuses a request, an employee believes their request was not properly considered, or the parties disagree about an existing working from home arrangement.

The new clause 5A specifically refers to clause 40 – Dispute resolution of the Clerks Award.

Step 1: Discuss the issue with the supervisor

The employee and their immediate supervisor should first attempt to resolve the disagreement through workplace discussions.

This may involve reviewing the proposed working arrangements, operational needs and possible alternatives.

Step 2: Escalate the matter internally

If the matter remains unresolved, the parties must attempt to resolve the dispute through discussions with more senior management, as appropriate.

This may involve HR, a senior manager or an authorised representative.

Step 3: Refer the dispute to the Fair Work Commission

If appropriate workplace-level steps have been taken without resolution, a party may refer the dispute to the Fair Work Commission.

The Commission may assist through mediation, conciliation or another process permitted under the relevant legal framework.

Arbitration is subject to the Commission having the necessary legal authority. Clause 40 does not automatically mean every disputed working from home request can be determined by a binding order.

Employees and employers may appoint representatives to assist during dispute resolution.

While a dispute is being managed, work generally continues in accordance with the award and applicable legislation, subject to work health and safety requirements.

What if the employee makes a statutory flexible working arrangement request?

A separate dispute resolution pathway may apply under section 65B of the Fair Work Act.

Where an eligible statutory request is refused, or the employer fails to respond within 21 days, the Fair Work Commission can assist after attempts to resolve the issue at the workplace.

In appropriate circumstances, the Commission can make binding orders.

For further information, visit the Fair Work Ombudsman's Flexible working arrangements fact sheet.

6. What should employers do before 26 October 2026?

Businesses covered by the Clerks Award should review their policies, procedures and employment documentation before the changes commence.

A practical compliance checklist includes:

  •  Confirm which employees are covered by the Clerks Award.

  • Review existing working from home and hybrid work arrangements.

  • Introduce a written working from home request process.

  • Prepare a written agreement template that addresses clause 5A.6.

  • Review rostering, ordinary hours, overtime and break arrangements.

  • Ensure time and wage records are accurate.

  • Review work health and safety arrangements for remote workers.

  • Train supervisors to distinguish award-based requests from statutory flexible work requests.

  • Establish an internal dispute resolution and escalation process.

  • Provide employees with copies of their written agreements.

Employers should also consider consultation requirements, privacy obligations, cybersecurity and appropriate equipment arrangements.

For practical advice, the Fair Work Ombudsman provides a Flexible working arrangements best practice guide.

7. Frequently asked questions about the Clerks Award working from home changes

Does the Clerks Award give employees a right to work from home in 2026?

No. From 26 October 2026, employees covered by the Clerks Award can formally request a working from home arrangement under clause 5A, but employer agreement is required. Separate statutory rights may apply to eligible employees.

Do employees need 12 months of service to request working from home under the Clerks Award?

No. The new clause 5A does not itself impose a 12-month qualifying period. The 12-month service requirement generally relates to statutory flexible working arrangement requests under section 65 of the Fair Work Act.

Does an employer have 21 days to respond to a working from home request?

It depends on the legal basis of the request. The new Clerks Award clause does not prescribe a general 21-day response period. However, a valid statutory flexible working arrangement request under the National Employment Standards requires a written response within 21 days.

Can an employer require an employee to return to the office?

Potentially. The answer depends on the employee's contractual terms, applicable award or enterprise agreement, any existing written arrangement, the agreement's variation and termination provisions, and any statutory protections.

Employers should review these requirements before withdrawing an established working from home arrangement.

Do working from home agreements have to be in writing?

Yes. An agreement made under the new clause 5A must be in writing, identify the specified essential terms and be retained as a time and wages record. The employee must also receive a copy.

Can an employee work from a café or another location?

Potentially, but the alternative location must be approved by the employer. Employers should consider confidentiality, cybersecurity, suitability and safety before granting approval.

Can an employee challenge a rejected working from home request?

Yes, disputes about clause 5A requests may be dealt with under the Clerks Award dispute resolution process. Employees who also qualify for statutory flexible working arrangements may have additional rights to refer a dispute to the Fair Work Commission.

Final thoughts: Preparing for the Clerks Award changes

The introduction of working from home provisions into the Clerks – Private Sector Award 2020 marks an important development in Australian workplace relations.

For employees, the changes establish a clear mechanism to request remote working arrangements.

For employers, they provide greater flexibility in managing working patterns while creating a formal framework for documenting and administering agreed arrangements.

The key takeaway is that working from home remains subject to agreement under the new Clerks Award clause, but employers must still comply with any applicable National Employment Standards obligations.

Businesses should review existing practices, update written agreements and ensure managers understand how to respond to requests and resolve disputes.

For official information and updates, consult the Fair Work Ombudsman and the Fair Work Commission.