The future of flexible work: navigating compliance in the return-to-office era

As a business owner, navigating the rapidly evolving workplace has become a constant challenge. From managing remote work arrangements to shifting employee expectations, employers have had to adapt quickly. Now, a new challenge is emerging: the push to bring employees back to the office amid legal protections protecting flexible working rights.

Striking the right balance isn’t easy. Collaboration, culture, and operational efficiency remain priorities, but employees are increasingly resistant to giving up flexibility, with some even choosing to leave over-rigid return-to-office mandates.

Here, we explain the future of flexible working arrangements and why compliantly navigating return-to-office policies is essential for every business owner.

The push for hybrid work models in Australia: why is it happening now?

Australia’s 2025 workplace trends are already showing major corporations are enforcing in-office attendance. Businesses are assessing the future of work in Australia, and businesses are making decisions such as:

• Tabcorp has informed 1,000 employees that their default work location is in the office.
• Amazon is implementing a five-day in-office policy starting in January 2025.
• KPMG’s 2024 Global CEO Outlook found that 83 per cent of CEOs expect a full return to the office within three years.

The reason? Better culture, collaboration, and productivity. However, many business leaders privately admit that the real motivation is regaining control over their workforce and ensuring employees are visibly engaged.

The question is, how do you ensure your business thrives in this new post-pandemic work environment without losing valuable team members or breaching employment laws?

Your employees want more workplace flexibility – and the law is on their side

For today’s workforce, flexibility isn’t just a nice-to-have; it’s often a dealbreaker.

• Microsoft research found that Gen Z job seekers are 77 per cent more likely to apply for jobs that explicitly mention flexibility.
• Deloitte’s 2023 Global Millennial and Gen Z Survey confirmed that employees overwhelmingly prefer hybrid work models, regardless of location or industry.
• ADP Research Institute discovered that many workers would quit rather than comply with a full-time return-to-office policy.

For businesses, the reality is clear: forcing employees back into rigid work structures could mean losing top talent to competitors offering more flexibility. At the same time, you still need control over your workplace and operations, and that’s where understanding the law becomes critical.

What do employers need to know about flexible work laws?

Many business owners assume they can set their own rules about workplace attendance, but recent changes to workplace laws have made it riskier than ever to refuse flexibility requests.

1. Who can request flexible work?

Employees are eligible to request flexible working arrangements after completing 12 months of continuous service, not including unpaid leave. For casual employees, this requires 12 months of regular, systematic employment with a reasonable expectation of ongoing work.

Flexible working arrangement requests are permitted in specific circumstances, including when an employee:

• Cares for a child of school age or younger;
• Is pregnant;
• Acts as a carer;
• Has a disability;
• Is aged 55 or older;
• Is experiencing family violence or
• Provides care or support to an immediate family or household member affected by family or domestic violence.

2. What are your obligations?

From 6 June 2023, employers must follow new obligations before refusing a request from an employer for a flexible working arrangement. The new requirements have been implemented in the Fair Work Act (FW Act), making the process for responding to requests for flexible work consistent with the provisions in modern awards.

If you receive a request for a flexible working arrangement, you must provide a response to your employee within 21 days of receipt of the request. The response must state whether the employer has granted or refused the employee’s request.

An employer can only refuse a request if it has:

• discussed the request with the employee;
• made a genuine effort to find alternative arrangements to accommodate the employee’s circumstances;
• considered the consequences of refusal on the employee; and
• the refusal is on reasonable business grounds.

3. What happens if you refuse?

If an employer is unable to accept an employer’s flexible working request, it is a requirement that an employer then explore with the employee other alternative arrangements that may meet their needs to their flexible working request. For example, if you could offer reduced hours but in a different role or at another location, you are required to discuss this alternative with the employee and include the full details of this in the response.

If the employer refuses the employee’s request, the written response must:

• include details of the refusal;
• set out the particular business ground(s) for refusing the request;
• explain how the business ground(s) apply to the request; and
• either set out alternative changes the employer is willing to make, which would accommodate the employee’s circumstances, or state that there are no such changes.

Turning down a flexibility request without proper justification could lead to legal disputes, reputational damage, and costly penalties.

What’s the right way to manage flexibility requests?

As a business owner, it’s essential to find a balance between operational needs, compliance and your employee’s work-life balance. Here are a few tips on how you can protect your business while making flexibility work:

1. Create a legally compliant flexible work policy: establish clear flexibility guidelines, align policies with the FW Act and industry standards, and simplify compliance
2. Handle requests fairly and transparently: evaluate each request on its merits, balancing business needs and legal compliance while fostering open dialogue with employees to explore alternative solutions before making a decision.
3. Stay informed on changing workplace laws: adapting to evolving flexible work laws is essential to avoid costly legal fees and employee turnover, making compliance a smarter choice for your business.

Why partner with Citation HR?

The request for flexible working arrangements can put your business in the middle of several employment relations minefields, even before considering how to respond. Business owners like you don’t have time to keep up with complex workplace laws, compliance risks, and HR headaches – but we do. Citation HR provides comprehensive policy templates so that you, your management and other employees are clear about where they stand. Citation HR can also guide you through the workplace health and safety requirements for remote workers.

Citation HR clients who have been presented with a request for flexible working arrangements can contact the 24/7 HR Advice Line for tailored guidance.

Not a Citation HR client? Find out how Citation HR can help your business and streamline your workplace compliance.

About our author

Kurt Calma is a Workplace Relations Consultant at Citation HR. He regularly provides advice on workplace matters via the 24/7 HR advice line to find solutions for clients.