Perth: As flexible working arrangements become increasingly common, a recent report from the Australian Bureau of Statistics reveals that 37% of Australians now regularly work from home. This shift raises important questions about employee flexibility in choosing work locations, particularly regarding eligibility for workers' compensation and adherence to workplace policies. Photo courtesy: ABC News.

The Fair Work Commission (FWC) is currently examining the Clerks Award, which governs administrative workers, to potentially include the right to work from home. According to the Australian Bureau of Statistics (ABS), approximately 37% of Australians are now working from home regularly, reflecting a 5% increase from pre-pandemic levels.

A New Era of Work Flexibility
This review comes as many Australians, like Casey Munro from Campbelltown, seek flexible work arrangements. After enduring long commutes to his city job, Munro welcomed the opportunity to work from home in customer service, which he found life changing. "It's a bit less money, but I'm not having to pay for a commute," he shared.

"I can exercise, and it's easier to get a full eight hours of sleep." Munro emphasizes the stress-relief benefits of having his cat nearby during work hours, especially when dealing with challenging customers.

Implications for Over a Million Workers
The hearings, which began recently, could impact more than a million clerical and administrative workers across Australia, particularly the 91,000 covered by the Clerks Award. Dr. Gabrielle Golding, a senior law lecturer at the University of Adelaide, noted that this review could mark a significant shift in empowering employees regarding how, when, and where they work.

Currently, employers are only required to consider reasonable requests for remote work from employees with specific needs, such as caregivers or those with disabilities.

A Call for Balance in Work Arrangements
Sally McManus, Secretary of the Australian Council of Trade Unions (ACTU), pointed out that while many workplaces have adapted to flexible arrangements, there is a need for protections against unreasonable refusals from employers. She clarified that the proposed changes would not grant blanket rights to work from home but rather establish a framework for employees to request such arrangements without fear of unjust denial.

Conversely, Jessica Tinsley, Director of Workplace Relations with the Australian Chamber of Commerce, and Industry (ACCI), expressed concerns about extending these rights to those who merely wish to work from home for lifestyle reasons. ACCI advocates for changes to the Clerks Award to better align with flexible work practices, including adjusting minimum shift requirements.

Concerns Over Job Outsourcing
Some industry leaders, like Charles Cameron, CEO of the Recruitment, Consulting and Staffing Association (RCSA), worry that increased rights for workers could lead to a decline in employment opportunities within Australia, particularly in knowledge jobs. He cautioned against layering new rights, suggesting it may make local employment less appealing compared to outsourcing roles to countries with lower labour costs.

Emily Jaksch of HR Gurus echoed these concerns, noting a trend among clients to outsource administrative tasks to countries like the Philippines, where labour is more affordable. She argues that establishing the right to work from home as an entitlement could further complicate the job market.

Next Steps
As the FWC continues its review, submissions from stakeholders are anticipated by March 2025, followed by additional hearings throughout the year. The outcomes of this process could redefine remote work rights for a significant segment of Australia’s workforce, balancing employee flexibility with business considerations.

Defining Remote Work vs. Work from Home
While "remote work" and "work from home" are often used interchangeably, they have distinct meanings. According to Ben French, a lecturer at Griffith University Business School, remote work encompasses any work done outside a traditional office setting, including locations like cafes or while traveling for business.

In contrast, "working from home" specifically refers to fulfilling job responsibilities from one’s residence, aligning with employer guidelines.

Graeme Orr, a labour law expert from the University of Queensland, adds that remote work can apply to various professions operating outside conventional office environments, such as traveling salespeople, fly-in fly-out mining workers, architects, and environmental consultants.

The Importance of Location Disclosure
Transparency about work locations is essential for both employees and employers. Dr. French explains that if employees work from an unapproved location, particularly outside their home jurisdiction, it can complicate workers' compensation claims if an injury occurs. Employers are legally required to provide a safe working environment, which extends to remote setups.

Beyond workers' compensation concerns, critical issues surrounding health and safety compliance, data security, and confidentiality arise. Employers must safeguard sensitive information under the Privacy Act, ensuring remote work practices do not expose the organization to data breaches.

Dr. French emphasizes that employers have a duty to equip employees with the necessary tools and resources for safe and productive work, including ergonomic furniture and reliable technology.

The Trend of 'Quiet Vacationing'
The emergence of "quiet vacationing," where employees work from vacation spots rather than their approved home offices, poses potential risks. Employees who fail to inform their employers about a change in their work location may find themselves without workers' compensation coverage should an incident occur.

Orr notes that if an employee communicates their intention to work from a different location, there are generally no legal repercussions, provided that the new environment is safe and adequately equipped for work.
Even with approval, employees must ensure they are in a suitable work environment. Orr emphasizes that maintaining a safe workspace remains critical, regardless of whether an employee moves from one apartment to another or to a beachside resort.

Balancing Productivity and Trust
Research from the Productivity Commission indicates that productivity levels may remain stable or even improve with increased remote work opportunities. However, some employers continue to hold a sceptical view of flexible arrangements, often equating physical presence in the office with commitment.

Dr. Libby Sander, an assistant professor at Bond University, points out that this perception can hinder the adoption of more flexible work practices.

By clearly defining expectations around work locations and focusing on results rather than physical presence, organizations can cultivate positive and productive working relationships in this new era of flexible work. Ensuring that both parties understand their responsibilities and obligations can pave the way for successful remote work experiences in Australia and beyond.