Landmark remote work ruling puts pressure on Australian banks to revisit flexibility policies

Australian banks are being urged to reassess their flexible work policies after a landmark Fair Work Commission (FWC) ruling backed a Westpac employee’s request to work remotely full time.

The ruling has prompted the Finance Sector Union (FSU) to send letters to major banks, warning that employers could be breaching workplace laws if they reject flexible work requests without clear consultation or evidence. The union said finance employers must “get their own house in order” by revisiting all rejected requests from the past year.

The case centred on Karlene Chandler, a long-serving Westpac employee who asked to work from home to balance her family commitments. Her request was turned down after the bank argued that remote work could not replace childcare duties. The Commission, however, disagreed. It pointed to Chandler’s solid track record and concluded that Westpac had no reasonable basis for rejecting her request to continue working from home.

The decision is being viewed as a precedent-setting moment for the finance sector. “Flexibility is not a perk—it’s a legal right,” said FSU Assistant Secretary Nicole McPherson. “Employers can’t hide behind buzzwords like culture and collaboration when the law demands fairness and consultation.”

Westpac said it would review the ruling, reiterating that its workplace policies are designed to balance flexibility with collaboration. Chief Executive Anthony Miller said the bank’s current hybrid policy of two-to-three office days a week strikes “the right balance”.

The FSU believes this decision will have far-reaching implications for organisations imposing blanket return-to-office mandates without considering individual circumstances.