A working from home clause has been inserted into the Clerks - Private Sector Award 2020 (Award) from 26 October 2026. This has an impact across the board for many employers as the Award is one of the most common occupational awards that cover administration and clerical staff.
The new clause does not create an automatic right to work from home and does not require employers to approve a working from home request.
Instead, it provides a framework for employers and employees to voluntarily agree to a working from home arrangement and document how that arrangement will operate.
Whats changed?
From 26 October 2026, the Clerks Award includes a new working from home clause that allows employers and employees to agree to remote work arrangements and vary certain award provisions by agreement, while maintaining an employer's right to approve or decline requests.
Why has this clause been created?
The clause has been created at the initiative of the Fair Work Commission (Commission) on review of the Award. Under the Award Clerical work is defined as work including recording, typing, calculating, invoicing, billing, charging, checking, receiving and answering calls, cash handling, operating a telephone switchboard, attending a reception desk and administrative duties of a clerical nature.
As a result of increased working from home during COVID-19 the Commission on review of the Award had the view outlined below.
These duties have traditionally and historically been performed in an office environment. However, because these duties are now performed primarily using digital applications on electronic devices, they are particularly susceptible to being performed remotely, including at the employee’s home.
Recognising these workplace realities, the Commission determined that the Award should better accommodate remote working arrangements while maintaining flexibility for businesses. As a result they moved ahead with an application to vary the Award to allow more accommodating terms to apply to these employees.
What does this mean?
The clause introduces a method of allowing employees to make a request to work from home outside the pathway of flexible working request under the Fair Work Act. This means the employee does not have to meet certain eligibility criteria to make the request, instead they can make a request at any time.
Where an employer wishes to agree to the arrangement both parties can also, as part of the arrangement, agree to alter how certain Award provisions apply. This can include altering things such as the requirement for an employee to work their ordinary hours continuously except for rest/meal breaks. For example an employee and employer could agree that when working from home the employee can leave at 2.30pm to take care of personal duties such as picking up their child from school and getting them settled at home. The employee could then start working again at 4.00pm and this 1.5 hour gap would not be considered a rest/meal break or time worked but could still be compliant under the Award if the provisions have been applied correctly.
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What counts as "home"?
Under the clause, working from home does not strictly mean working from the employee's residence. It can be either:
- their home, or
- another location that the employee has chosen that has been approved by their employer.
This means that employers could agree to the employee working these arrangements at a location that is not their residence and it would still allow the increased flexibility to be utilised. If agreeing to a separate location it's important that employers document this clearly and confirm the appropriate process to follow should the employee wish to change this in future.
What does this mean for employers?
While many businesses already have informal work from home practices, the clause means employers should consider whether their current processes are sufficiently documented and compliant. They should also review whether the new terms may be a benefit to the business operations and discuss with relevant employees.
Employers should watch out for any requests that come through and ensure that the request: * is documented in writing * includes their proposed working from home pattern * any other accommodations the employee is requesting
- Employee submits a written request outlining their requested pattern
- Employer considers the request and reviews whether the business wants to agree
- Agreement is documented in writing if the employer confirms they want to move ahead
- Employer retains a copy of the agreement
Employer watchouts
Employers should ensure any communication and agreements under the clause are clearly documented in writing and kept in relevant employee records. There are strict requirements on what must be included in the written agreement if an employer is going to move ahead with the arrangement. This includes outlining how the arrangement can be further varied or terminated should the need arise.
Peninsula can assist with reviewing whether the clause applies to your employees, how to manage requests and how to document an arrangement once an agreement is put in place. Call today on Peninsula
