‘Game-changing’ Westpac case puts onus on employers to make flexibility work

A recent Fair Work decision could significantly impact employers’ ability to refuse flexible working arrangements.

Earlier this month, in the case of Karlene Chandler v Westpac Banking Corporation, the Fair Work Commission rejected Westpac’s argument that there was a “genuine and reasonable business need” for an employee to attend one of its corporate offices in South Sydney, or another corporate office, for at least two days per week.

The order, allowing the employee to work from home to enable her to care for and attend school pick-ups and drop-offs for her two young children, could set the tone for flexible working arrangements moving forward.

In conversation with HR Leader, HiBob customer success manager Sabrina Scherm said that the “game-changing” FWC ruling “effectively moves the conversation beyond arbitrary office mandates and puts the onus on employers to provide genuine, reasonable business grounds for refusing flexibility, rather than relying on outdated views about face-to-face work”.

This directly confronts the rigid policies that disproportionately hinder women and carers, Scherm argued, who often need flexibility the most.

“The result of inflexibility is typically a ‘presence bias’, where higher in-office attendance, which is more prevalent among men, translates into quicker promotions and increased visibility,” she said.

“In fact, Robert Half found that 74 per cent of Australian employers agree an employee’s presence in the office impacts their likelihood of getting a promotion. The consequences for career progression are stark.”

She added: “Our HiBob research revealed a significant gender gap, with men promoted at a significantly higher rate than women last year; 41 per cent compared to 25 per cent. When performance is proven, as it was in this case, forcing a long commute makes no business sense and actively damages equity.”

This ruling, Scherm went on, helps move the conversation beyond whether flexibility can work, to how businesses can best implement it.

“For organisations, this shouldn’t be seen as a challenge, but as a proactive strategy for attracting and retaining top talent,” she said.

“Building a culture based on trust, performance, and mutual benefit is how we build the resilient, engaged, and high-performing teams needed for the future.”