As an employer, it is important that you understand the legal entitlements you owe to your employees. If you breach their rights, you may be liable and a court may order you to pay compensation. Although anyone can request a flexible work arrangement, certain employees have a legal entitlement under the Fair Work Act 2009. You should remain open to accepting flexible arrangements since they can mutually benefit you and your employee. This article explains:
- what a flexible work arrangement is;
- the benefits of this type of arrangement;
- how your employee can make a request; and
- your obligations when responding to such requests.
What is a Flexible Work Arrangement?
A flexible work arrangement is a work arrangement that helps employees achieve a work/life balance. Arrangements can take varied forms, including:
- job sharing;
- part-time hours;
- varied start and finish times;
- half days; and
- working from home.
The arrangement aims to reach an agreement that suits both you and your employee. Flexible work arrangements pose significant benefits for your business. For example, if you implement flexible work options, your employees may:
- gain greater job satisfaction;
- lower their work-related stress; and
- achieve a healthier work-life balance.
This is because they will have more time to tend to family responsibilities and care for themselves while managing their work.
In our experience, workplaces that implement flexible work arrangements have:
- lowered levels of absenteeism;
- increased productivity from staff; and
- more competitive job offerings to attract and retain skilled staff.
Can Anyone Make a Request?
The legal right to request flexible work arrangements arises when an employee has worked for you for at least 12 months. This applies to:
- permanent employees who have worked for your business for at least 12 months; and
- regular and systematic casual employees who have worked for your business for at least 12 months and have a reasonable expectation of continuing employment on a regular basis.
In addition to the above length of service, employees may only request flexible work arrangements under the Fair Work Act where they are a:
- parent;
- carer;
- person with a disability;
- person aged 55 or older;
- person experiencing family and domestic violence; or
- carer of someone who is experiencing family and domestic violence.
If your employee does not meet the above criteria, your employment agreement should be reviewed to clarify whether or not requests for flexible work arrangements can be made. In some cases, a failure to comply with flexible work provisions in an employment agreement can put you in breach of contract.
As an employer, understand your essential employment obligations with this free LegalVision factsheet.
How Do Employees Make a Request?
A formal request under the Fair Work Act 2009 must:
- be made in writing;
- be given to you as their employer; and
- outline the change that the employee is seeking and the reasons for such a change.
The employee can also make suggestions about how the changes can occur so that there is minimal disruption to your business.
What Are My Obligations?
You should know that once you receive a request, you need to respond in writing within 21 days. The response should state whether you have granted or refused the request. You should only provide a response after you have genuinely engaged in discussions with the employee regarding their request and, if you are considering refusing, after you have considered all alternatives.
When you receive a request for flexible working arrangements, you must remain open to the request. Accepting a request for a flexible work arrangement can foster a happy work environment. If you refuse the request, you must have reasonable business grounds to do so and should make these reasons clear in your response.
Some reasonable business grounds may include that the proposed change:
- is too costly to put in place;
- requires changing the work arrangements of other employees;
- would significantly reduce efficiency, productivity or both; or
- would have negative impacts on customer service.
However, you should be careful when responding to requests for flexible work arrangements. Ultimately, your inability to accommodate these requests may result in an employee leaving your business.
In addition, if you fail to respond to a request, or provide genuine business reasons for the refusal of a request, your employee may be able to seek assistance from the Fair Work Commission to resolve the dispute due to recent changes to the law. Therefore, it is prudent to genuinely attempt to resolve disputes internally and openly consider all proposals put forward to you.
Key Takeaways
Your employee may have the right to request a flexible work arrangement that alters their standard working arrangement. Once you receive a written request for a flexible arrangement, you must provide a written response within 21 days. If you decide to refuse the request, you must do so on reasonable business grounds.
If you need help responding to a request for a flexible working arrangement, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
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