During the pandemic, almost overnight, working from home went from being an uncommon perk, to an everyday reality. What started as a health and safety measure quickly became something many workers came to value, as it presented a new way to manage time and balance responsibilities, and an opportunity to rethink how work fits into life.

Now, a few years on, the conversation has shifted. Remote and hybrid work aren’t just temporary solutions; they’re part of how people expect to work. Now, expectations have changed, though the rules haven’t quite caught up.

That’s why the Fair Work Commission are stepping and taking a fresh look at whether working from home should be built into Modern Awards, starting with the Clerks – Private Sector Award 2020. The goal is to create clear and practical clauses that make working from home easier to manage for both employees and employers where there is agreement to do so.

Why the Fair Work Commission is reviewing work from home provisions

The Fair Work Commission initiated its review in September 2024, aiming to bring Australia’s workplace rules up to speed with the way many people now work. The review focused on removing barriers in the Clerks Award that make working from home harder to manage, and instead, introducing clear, practical clauses that support flexible arrangements where both the employer and employee agree.

So why start with the Clerks Award? Because it makes sense. Around 41% of clerical workers already work from home on a regular basis, far more than most other industries. In many ways, this group represents the heart of Australia’s work from home shift, making the award the logical starting point for reform.

Proposed changes to work from home provisions in the Clerks award

As part of the Fair Work Commission review, we have already seen submissions from key employer advocate groups in the following areas:

Spread of hours & penalty rates 

Currently, work performed before 7am and after 7pm attracts penalty rates. However, depending on the employee’s role, working hours may shift slightly to allow staff to take advantage of the benefits of working from home, such as handling personal matters during what would normally be standard work hours. Proposed changes suggest that employers would no longer be required to pay penalties for work performed outside the usual spread of hours in these circumstances.

Allowances  

Currently, under the Clerks Award, employees can receive a range of allowances, such as for first aid duties, clothing and footwear, and meals during overtime. However, with a growing number of clerical employees now working remotely, it is questionable whether these allowances still make sense in the work from home context. Here’s what’s being considered:

• First aid allowance: Traditionally paid to a nominated employee who holds a current first aid certificate and is responsible for providing first aid in the workplace. If that employee is now working from home, there is no reasonable expectation to assist other workplace participants.
• Clothing and footwear allowance: This entitlement applies where employees are required to wear specific work attire, such as uniforms or formal corporate clothing. If no dress code applies while working from home, the entitlement may not apply.
• Meal allowance: Employees working overtime without sufficient notice are typically entitled to either a meal or a meal allowance. If the employee is working from home with access to their own kitchen, the applicability of this allowance becomes less clear.

Breaks

One important potential change relates to how break times are managed while working from home. At present, the Clerks Award has requirements that outline when breaks are to be taken, and the length of time of those breaks – and failure to provide these breaks may result in the employee being entitled to overtime. However, in practice employees working from home typically enjoy flexibility in how they take their breaks, for instance, splitting an hour across the day with 20 minutes at 11am, 30 minutes at 1pm, and another 10 or 20 minutes later in the afternoon, depending on their circumstances.

This raises an award entitlement issue: if an employee chooses to split their break for practical reasons, it may still trigger an entitlement to overtime. Under a change proposed by an employer group, any variation to standard break times would need to be mutually agreed between employers and employees. The key condition is that the total break entitlement must remain the same. In short, breaks could be split or shifted, provided neither party loses out and the full break duration is still taken.

Other considerations and proposed changes 

Other considerations and proposed changes include the introduction of a clear definition of what “working from home” means; basically, any work an employee does from their home (or another agreed location) instead of the usual workplace. Another idea on the table is giving employees more flexibility over when they work their hours at home, rather than sticking to one continuous block.

There’s also a proposal about easing some of the current rules for part-time and casual employees. For example, minimum shift lengths could be dropped when staff are working remotely, and those on part time hours could have more say over their start and finish times instead of being locked into rigid schedules.

Looking ahead: What’s next in the Fair Work Commission review?

The Fair Work Commission’s review is still in motion, and there are some key milestones coming up, such as the next directions hearing and the release of draft clauses for feedback.

Right now, the focus is on the Clerks Award, but the ripple effect could go much further. Any changes here could end up shaping how other Modern Awards handle working from home. So, even if your business isn’t covered by the Clerks Award, it’s worth keeping an eye on what how this review progresses.

A quick reminder: working from home isn’t currently an automatic right under the awards. It’s something that must be agreed between employer and employee and properly documented. As the review unfolds, we’re likely to see more guidance on how working from home should be negotiated consistently across different awards.

How businesses can prepare for changes to working arrangements

Even though the Fair Work Commission review isn’t finished and no final decisions have been made, now is a good time for employers to start preparing. Outlined below are steps you can start taking today.

1. Review and formalise current flexible working arrangements which include work from home 

A lot of businesses still have informal work from home agreements with individual employees, especially ones that were set up quickly during the COVID-19 pandemic. If the Fair Work Commission adds specific work from home provisions to Modern Awards, those informal arrangements might not be enough. Take stock of who’s working from home, what the current terms are, and whether they’re documented. Going forward, make sure every work from home agreement is in writing, clear, and agreed to by both sides.

2. Update or create a work from home policy 

A good policy keeps things consistent and makes expectations clear. Your policy should cover:

• Hours of work and availability: When employees should be online and how flexible schedules are managed.
• Communication: How the team stays in touch and response expectations.
• Performance: How work output will be monitored and reviewed remotely.
• Health and safety: Steps to ensure employees’ home setups are safe and compliant.

Having a policy in place now makes it much easier to adjust if the Fair Work Commission introduces new rules.

3. Keep safety front of mind 

Work health and safety doesn’t stop at the office door. Even a simple self-assessment checklist for home offices can show that you’re taking reasonable steps to protect staff. If the rules become more restrictive in the future, you’ll already be prepared.

4. Consider costs 

One big question is whether employers will need to contribute to home equipment, furniture, or internet. While nothing is set yet, it’s worth deciding your stance early. Think about what’s fair and sustainable for your business, so you’re ready if cost-sharing becomes mandatory.

5. Be ready to adapt 

The Fair Work Commission review will continue with directions hearings and draft clauses for feedback. Stay across updates and be prepared to adjust policies or seek advice as things evolve.

Key takeaways for employers

Working from home is here to stay, and while the rules aren’t final, taking proactive steps now will save headaches later. Reviewing your arrangements, updating policies, addressing safety and costs, and keeping up with developments will help your business stay compliant, and make remote work easier for employees and employers.

Business Chamber Queensland can support employers by helping them navigate the evolving workplace relations landscape, including the Fair Work Commission’s review of work from home provisions under the Clerks Award.

With specialist Workplace Relations Advisors, the Chamber can provide tailored guidance on reviewing and formalising remote work arrangements, drafting or updating work from home policies, and ensuring compliance with health and safety obligations in home offices. Employers can also access advice on managing costs, communication, performance expectations, and flexible work practices, while staying informed about upcoming changes through regular updates and insights.