Changes to Flexible Work Arrangements
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As of 6 June 2023, employers now have an increased obligation to try and accommodate employees’ requests for flexible working arrangements under the Fair Work Act.
The recent amendment places a responsibility on businesses to reassess their current practices and ensure that requests for flexible working arrangements are only declined based on reasonable business grounds.
Here’s what you need to know to ensure that your business remains compliant with the new updates.
Under the recent amendment, certain employees now possess a legal entitlement to seek flexible work arrangements. This includes, but is not limited to:
Permanent employees with a minimum of 12 months tenure at the company.
Casual employees who have consistently and systematically worked for at least 12 months.
To initiate a request for flexible work, employees must submit a written proposal.
Employers are obligated to provide a written response within a timeframe of 21 days.
Any denial of a request can only be justified by reasonable business grounds, ensuring fairness in the decision-making process.
What does this mean for your organisation?
As you will need to comply with the new formal process for managing FWA under the Fair Work Act, consider the following actions to remain compliant and aligned:
Review all policies and procedures relating to Flexible Work.
Create a communication plan for managers.
Create a Manager Guide on how to process and review requests.
Who can request a Flexible Work Arrangement (FWA)?
Additionally, the request must also be because the employee:
is pregnant.
is the parent, or has responsibility for the care, of a child who is of school age or younger.
is a carer.
has a disability.
is 55 or older.
is experiencing family and domestic violence; or
provides care or support to a member of their immediate family or household, who requires care or support because the member is experiencing family and domestic violence.
For an employee to make a request for a FWA, the request must be in writing, and include details of the change and a reason to support the change.
When can you say no to an FWA?
Under the new amendment, an employer can only refuse a request if:
The employer has discussed the request with the employee and genuinely tried to reach an agreement with the employee and accommodate their circumstances.
The employer and employee have not reached an agreement.
The employer has had regard to the consequences of the refusal for the employee.
The refusal is on reasonable business grounds.
Bottom-line
Under the Fair Work Act, employers are required to adhere to the new formal process for Flexible Work Arrangements (FWAs). These requests can only be declined if there are valid and reasonable business grounds.
It is recommended that businesses review their policies and procedures to ensure that they are aligned with the new amendments. Infinity HR are available to support and guide your business through this change. This is included and not limited to policy and guideline reviews, manager training, creating procedures and documentation.