Westpac's Loss at Fair Work Commission Highlights Need for Inclusive Workplace Policies

Strategic Insights -

The recent loss of Westpac at the Fair Work Commission over a staff member's request to work from home permanently has sent a warning to bosses that they must be prepared to justify why they require certain workers to come into the office. Karlene Chandler, a 20-year veteran of the bank, successfully challenged Westpac's office attendance policy after it refused her request to work from home, citing section 65 of the Fair Work Act. The Commission's decision was based on Westpac's failure to provide "reasonable business grounds" to refuse Chandler's request and its failure to respond to her request for flexible working arrangements within the required 21 days.

Key Takeaways:

  • Westpac's loss at the Fair Work Commission highlights the need for employers to justify their workplace policies and provide genuine business reasons for refusing flexible working arrangements.
  • The Commission's decision was based on Westpac's failure to provide "reasonable business grounds" to refuse Chandler's request and its failure to respond to her request for flexible working arrangements within the required 21 days.
  • The ruling sets a precedent for workers who have caring responsibilities and may help secure work from home rights for employees with similar circumstances.
  • Employers in the banking and finance industry are increasingly relying on the supposed benefit of "face-to-face" contact as a reason to refuse requests for flexible working arrangements, which is unacceptable.
  • The decision puts all employers on notice that they must have genuine business reasons to refuse a flexible working arrangement request.
  • Westpac's current approach of requiring employees to come into the office 2-3 days a week may not be the most effective way to maximise in-office engagement.
  • Establishing strong processes for employees to make flexible work agreement requests can help companies meet their legal obligations and better understand how their employees work.
  • Employers need to consider individual circumstances when dealing with flexible work requests.
  • The Westpac decision should remind companies that they are legally obliged to respond to requests for flexible working arrangements within 21 days and provide grounds for refusing requests.

Statistics:

  • 80 kilometres: distance from Sydney's CBD to Chandler's home in Wilton
  • 20 years: Chandler's tenure at Westpac
  • 2-3 days: Westpac's current approach to requiring employees to come into the office
  • 21 days: time period within which employers must respond to requests for flexible working arrangements
  • 12 months: the minimum period of employment required for employees to apply for flexible working arrangements under the Fair Work Act

Sources:

  • Westpac's response to the Fair Work Commission regarding Chandler's flexible working arrangements request
  • Fair Work Commission decision on Chandler's application for flexible working arrangements
  • Statement by Finance Sector Union national secretary Julia Angrisano
  • Statement by Sam Nottle, principal lawyer at Jewell Hancock employment lawyers
  • Statement by Professor Anya Johnson, head of discipline in work and organisational at the University of Sydney's business school
  • Article by the Market Recap newsletter.