Work From Home Laws Australia: Can Employers Force a Return to Office?

Quick Answer

Work from home laws Australia-wide give no employee a legal right to work from home. Eligible employees have a right to request it under section 65 of the Fair Work Act 2009 (Cth), and you must answer in writing within 21 days and refuse only on reasonable business grounds. You can direct staff back to the office where the direction is lawful and reasonable and aligns with the employment contract and your policy; the Fair Work Commission upheld a dismissal for refusing a three-day return in January 2026. Victoria’s Equal Opportunity Amendment (Work from Home) Bill 2026 is not law: the 1 September 2026 start date passed with the Bill still in the Legislative Council, and a select committee report on 20 October 2026.

In our experience working with over 10,000 Australian businesses, most work from home disputes start the same way: a request answered by text message, or not answered at all. The law is procedural, and employers lose on procedure, not on the merits.

This guide covers the national rules, when you can force a return to office, the Victorian and federal Bills, what changed in 2025 and 2026, your obligations to staff working at home, and the documents you need.

Click on any of the questions below to jump to that section of this legal guide.

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What is the current law in Australia regarding work from home?

Current law in Australia gives eligible employees the right to request flexible working arrangements, including working from home, under Division 4 of Part 2-2 of the Fair Work Act 2009 (Cth). It is part of the National Employment Standards, so it applies to every national system employer, including small businesses, and no contract or enterprise agreement can remove it.

There is no general right to work from home, and no law that lets an employee decide their own place of work. Outside a valid request, the employment contract and your lawful and reasonable directions govern where an employee works.

Does my employer have to allow me to work from home?

No. An employer does not have to allow an employee to work from home, but an eligible employee can make a formal request that the employer must deal with under section 65 of the Fair Work Act. An employee is eligible after 12 months of continuous service (regular and systematic casuals with 12 months and a reasonable expectation of ongoing work also qualify) if they:

• are pregnant
• are the parent of, or have responsibility for the care of, a child who is school age or younger
• are a carer under the Carer Recognition Act 2010
• have a disability
• are 55 or older, or
• are experiencing family and domestic violence, or are supporting a member of their immediate family or household who is.

The request must be in writing and set out the change sought and the reasons for it. An employee who does not meet the criteria can still ask, but the section 65 process and the Commission’s dispute powers do not apply. Independent contractors have no request right: if you are unsure whether a worker is one or the other, read our guide to contractor vs employee.

Can an employer refuse an employee to work from home?

Yes. An employer can refuse a request to work from home on reasonable business grounds, but only after discussing the request with the employee, genuinely trying to reach agreement, and considering the consequences of a refusal for the employee. The written response must reach the employee within 21 days and state the grounds for refusal, any alternative arrangement you are willing to offer, and that the employee can take a dispute to the Fair Work Commission.

Section 65A of the Fair Work Act lists the reasonable business grounds:

• the new arrangement would be too costly
• there is no capacity to change the working arrangements of other employees to accommodate it
• it would be impractical to change other employees’ arrangements or to recruit new staff
• it would be likely to result in a significant loss of efficiency or productivity, or
• it would be likely to have a significant negative impact on customer service.

The grounds must be specific to the employee and the role. “Collaboration” and “team culture” as bare labels have failed at the Commission. Say what the person cannot do from home, and why.

What happens if you cannot agree on a flexible working request?

If you and the employee cannot agree, either side can take the dispute to the Fair Work Commission under section 65B, after first trying to resolve it at the workplace. Since 6 June 2023, the Commission can conciliate and, where that fails, arbitrate and make binding orders, including an order that you grant the request.

The numbers are still small but rising. The Commission received 207 flexible working dispute applications in 2023-24 and 306 in 2024-25, and only about 2 per cent went to arbitration: most are settled at conciliation once the employer’s reasons are tested.

The reference case is Chandler v Westpac Banking Corporation [2025] FWC 3115. Westpac refused a long-standing remote worker’s request to stay at home, missed the 21-day deadline, and gave generic reasons about collaboration. The Commission ordered Westpac to grant the request in full.

Can employers force a return to office?

Yes, employers in Australia can direct staff to return to the office where the direction is lawful and reasonable, consistent with the employment contract, and not in conflict with a flexible working arrangement already agreed under the Fair Work Act. In most cases, employers allowed working from home during and after COVID-19, but it was not a term of the contract.

Whether a direction is reasonable depends on the role, the notice given, what the contract and policy say, and how the arrangement came about. An employee who was hired as fully remote is in a different position from one whose contract names the office as the place of work.

Can I refuse to return to the office?

An employee can refuse a return to office direction only where it is unreasonable, breaches the employment contract, or conflicts with an agreed flexible working arrangement. Refusing a reasonable direction is a disciplinary matter, and repeated refusal after warnings can be a valid reason for dismissal.

The safest route for an employee with a qualifying reason is not to refuse but to make a written request under section 65. That triggers the 21-day process and, if refused, the Commission’s dispute powers.

What should I do if an employee refuses to return to work in an office?

Treat a refusal as a process to run, not a fight to win. In order:

1. Check the employment contract and your policy for the place of work clause and any wording that lets you change work location.
2. Ask for the reasons in writing. Health, caring, disability or age reasons may mean the refusal is really a flexible working request, and you must then run the section 65 process.
3. Meet and discuss. A hybrid arrangement, staged return or trial period resolves most cases.
4. Give a written direction with a start date and reasonable notice.
5. If the employee still refuses, issue a written warning, then follow your disciplinary procedure.

Most Australian employers now require some office attendance, and the employees pushing back are a minority with specific reasons. Robert Half’s 2025 survey of 500 hiring managers found an average required attendance of 3.64 days a week, with 39 per cent of employers requiring five days. AHRI’s 2025 survey of HR professionals found 44 per cent of employers set a minimum of three to five days, with three days the most common arrangement (32 per cent).

Can I fire employees who refuse to return to work in an office?

Yes, you can dismiss an employee who refuses a lawful and reasonable direction to return to the office, provided you have given the direction in writing, warned the employee, and followed a fair process. Employers with fewer than 15 employees should follow the Small Business Fair Dismissal Code and keep the checklist on file.

The risk runs the other way if the direction was unreasonable, the contract promised remote work, or the employee had a valid request on foot. Then the dismissal is exposed to an unfair dismissal claim, or a general protections claim if the refusal was tied to a workplace right.

Has the WFH bill passed?

No. As at 29 September 2026, neither the Victorian nor the federal work from home Bill has passed. Victoria’s Equal Opportunity Amendment (Work from Home) Bill 2026 passed the Legislative Assembly on 30 July 2026 and is stalled in the Legislative Council, and the federal Fair Work Amendment (Right to Work from Home) Bill 2025 has not passed the Senate.

Bill	Status at 29 September 2026	What it would do
Equal Opportunity Amendment (Work from Home) Bill 2026 (Vic)	Passed the Assembly 30 July 2026, unamended. On 10 September 2026, the Council referred it to a select committee reporting 20 October 2026. Not law.	A right to work from home two days a week for eligible Victorian employees, enforced through VEOHRC and VCAT
Fair Work Amendment (Right to Work from Home) Bill 2025 (Cth)	Greens private senator’s Bill. Senate committee inquiry due to report by 26 March 2026. Not passed.	A national right to request up to two days a week at home, refusable only where the role’s inherent duties become impractical

What are the new work from home rules in Victoria?

The Victorian Bill, as drafted, gives an employee who works at least 38 hours a week the right to work from home two days a week where it is reasonable to do so, with a pro rata entitlement for part-time and regular casual employees. Employees on probation, apprentices and interns, and employees who already have a flexible working arrangement under the Fair Work Act are excluded.

The Bill presumes working from home is reasonable. To refuse, the employer must show a specific problem: the core duties cannot be done from home, a significant drop in productivity, a safety risk, or high cost. The employer must also pay the reasonable costs of enabling the work, such as equipment and secure system access.

Disputes would go to the Victorian Equal Opportunity and Human Rights Commission for conciliation and then to VCAT for binding orders. As drafted, the law would start for employers with 15 or more employees first, and for employers with fewer than 15 employees on 1 July 2027.

When does the Victorian work from home law start?

It has not started. The Government announced a 1 September 2026 start date in March 2026, but the Bill was still before the Legislative Council then. On 10 September 2026 the Council agreed to a reasoned amendment referring the Bill to a select committee, which is due to report on 20 October 2026, and further debate is deferred until then.

Government pages, recruiter blogs and most news coverage still say the law applies “from 1 September”. It does not. If you employ Victorian staff, nothing has changed yet beyond the Fair Work Act rules above, and the Bill may still be amended before it passes.

Is there a federal right to work from home?

No. Australia has no federal right to work from home. The Greens’ Fair Work Amendment (Right to Work from Home) Bill 2025 would let employees request up to two days a week at home and would allow refusal only where the role’s inherent duties became impractical or impossible, a far higher bar than today’s reasonable business grounds. A Senate committee inquiry was due to report by 26 March 2026, and the Bill has not passed.

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What changed for employers in 2025 and 2026

The work from home laws Australia’s employers must follow moved more in the last two years than in the previous ten. Dates to know:

Date	Change	What it means for you
26 August 2025	Right to disconnect extends to employers with fewer than 15 employees (section 333M, Fair Work Act)	Staff working from home can refuse unreasonable contact outside their hours. Put contact expectations in writing
October 2025	Chandler v Westpac [2025] FWC 3115	Miss the 21 days or give generic reasons, and the Commission can order you to grant the request
20 January 2026	Johnson v PaperCut Software (FWC)	A phased, well-documented return to office direction is lawful and reasonable; contract wording decides it
16 June 2026	Victorian Work from Home Bill introduced	Two days a week for eligible Victorian employees if it passes; not yet law
27 August 2026	Fair Work Commission Full Bench decides the Clerks Private Sector Award 2020 will carry a working from home term	Employees may request and employers may agree; a refusal must relate to your legitimate business interests. The union’s presumption of approval was rejected. Draft term published; start date pending
10 September 2026	Victorian Bill referred to a Legislative Council select committee	Report due 20 October 2026. The 1 September start did not happen

The Clerks Award change matters for any small business with reception, admin or payroll staff. Once the term starts, you must tie any refusal to your business interests in writing, which is the same discipline section 65 already demands.

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What are the rules for working from home employees?

Employees working from home keep every entitlement they have in the office: hours, breaks, pay, leave, a safe workplace and privacy. The employer keeps every corresponding duty. The rules below are the ones that most often go wrong.

What are the obligations of employers when working from home?

Your work health and safety duty follows the worker home. Under the Work Health and Safety Act 2011 (Cth) and the equivalent laws in every state and territory, you must do what is reasonably practicable to keep a remote worker safe, which in practice means a workstation and environment check, a way to report incidents, and attention to isolation and workload.

Hours and breaks do not change. Award and agreement rules on ordinary hours, overtime and rest breaks apply at home, and the right to disconnect means you cannot expect answers outside working hours without a good reason. A written policy that sets contact hours and response expectations protects both sides.

Can I monitor employees working from home?

Yes, you can monitor employees working from home, but only with notice and within the surveillance and privacy laws that apply. New South Wales requires 14 days’ written notice under the Workplace Surveillance Act 2005 (NSW), Victoria regulates devices and tracking under the Surveillance Devices Act 1999 (Vic), and the ACT has its own Workplace Privacy Act 2011. The Privacy Act 1988 (Cth) governs how you handle any personal information you collect.

Monitoring work systems, email and company devices with notice is standard. Webcam monitoring, keystroke logging and tracking personal devices are where employers get into trouble, and a covert program is unlawful in most states. State what you monitor, how, and why, in the policy the employee signs.

Can employees work anywhere if they work from home?

No. Working from home means working from the home address you have agreed, not from anywhere. An employee who moves interstate can change your payroll tax and workers’ compensation obligations, and an employee who works from overseas can create tax residency, visa and data protection problems for both of you.

Put the approved location in the flexible working agreement and require written approval for any change. If the person is overseas and not on your payroll, that is a different relationship: see our guide to hiring overseas contractors.

Are there insurance and tax implications for working from home?

Yes. Workers’ compensation covers an employee injured while working at home in the course of their work, so keep your policy current and record the agreed hours and location. Ask your insurer to confirm cover for equipment you supply, and remind employees that home and contents policies often exclude business use.

For tax, employees can claim working from home expenses through the ATO fixed rate method at 70 cents per work hour for the 2024-25 and 2025-26 income years, or the actual cost method with records. Reimbursing an employee’s home office costs is generally not assessable income, but benefits such as paying for home internet can trigger fringe benefits tax, so check ATO guidance before you set a reimbursement policy. Figures are current at 29 September 2026; check the ATO’s page for the current rate.

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What legal documents do I need for staff working from home?

You need two documents: an employment agreement with a place of work clause that lets you set and change work location, and a written work from home policy. Between them, they answer the questions that end up at the Commission: where the employee works, who can change it, and how.

What is a work from home policy?

A work from home policy is a written document that sets the rules for working outside the office: who is eligible, how to request it, approved locations and hours, equipment and costs, health and safety, security and monitoring, and how the arrangement is reviewed or ended. It is the notice the surveillance laws require and the evidence of “reasonable steps” that WHS and discrimination law reward.

It is one of several policies a business with staff should hold. Our guide to the 15 workplace policies your business needs covers the remote work policy in detail, alongside the others.

Do I need to change my employment agreements?

Yes, if your agreements are silent on place of work, name the employee’s home as the workplace, or pre-date 2023. The PaperCut decision turned on four words: working from home was permitted “in line with policy”, which kept the discretion with the employer. An agreement that says “the employee will work from home” gives that discretion away.

Agreements written before June 2023 also miss the flexible working request process, the right to disconnect and, for Victorian employers, the Bill that is coming. A short amendment fixes all three.

Frequently Asked Questions

Can I require my employees to work from home?

Yes, if the employment contract or policy allows you to set the place of work and the direction is reasonable. Consult first, confirm the home workspace is safe and put the arrangement, the equipment you supply and the review date in writing.

Can employees have second jobs if they work from home?

Generally yes, unless the contract restricts outside work or the second job conflicts with your business or their duties. Working from home does not change that, and the right to disconnect means you cannot police their hours outside the ones you pay for.

Do I need to provide laptops for employees working from home?

No law requires it today, but you carry the WHS and data security risk for whatever equipment is used, so most employers supply the laptop. The Victorian Bill, if passed, would require employers to pay the reasonable costs of enabling work from home.

What can employees claim from the ATO for working from home?

Employees can claim 70 cents per work hour under the ATO fixed rate method for 2024-25 and 2025-26, covering energy, internet, phone and stationery, or claim actual costs with records. You must keep a record of hours worked from home either way.

What is the difference between flexible working and working from home?

Working from home is one type of flexible working arrangement. Flexible working under section 65 of the Fair Work Act also covers changes to hours, start and finish times, part-time work and job sharing, and the same request and response process applies to all of them.

Does the right to disconnect apply to small business?

Yes. The right to disconnect has applied to employers with fewer than 15 employees since 26 August 2025, and to all other employers since 26 August 2024. Employees can refuse to monitor or respond to contact outside working hours unless the refusal is unreasonable.

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Further Information

• Employer obligations in Australia: the complete guide
• 15 workplace policies your business needs
• Contractor vs employee: the ATO and Fair Work tests
• Hiring overseas contractors

References

• Fair Work Ombudsman, Flexible working arrangements best practice guide (6 May 2026)
• Fair Work Commission, Chandler v Westpac Banking Corporation [2025] FWC 3115 (2025)
• Fair Work Commission, Working from home: Clerks Award decision issued (27 August 2026)
• Parliament of Victoria, Equal Opportunity Amendment (Work from Home) Bill 2026 (status at 29 September 2026)
• Victorian Government Solicitor’s Office, Proposed new Victorian work from home laws (3 August 2026)
• Premier of Victoria, Work From Home Protected In Law From 1 September (4 March 2026)
• Australian Bureau of Statistics, Working arrangements, August 2025 (released 12 December 2025)
• Australian Taxation Office, Working from home expenses: fixed rate method (accessed 29 September 2026)
• ACS Information Age, Tech worker loses unfair dismissal case over return to office (January 2026)
• Robert Half, More employers mandate 5 days in the office (25 February 2025)
• AHRI, Hybrid and Flexible Working Practices in Australian Workplaces (2025)

About the Author: Vanessa Emilio

Vanessa Emilio (BA Hons, LLB, ACIS, AGIA) is the Founder and CEO of Legal123.com.au and Practice Director of Legal123 Pty Ltd. Vanessa is a qualified Australian lawyer with 20+ years experience in corporate, banking and trust law. Click for full bio of Vanessa Emilio or follow on LinkedIn.

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