Bending over backwards for your employee - When is enough?

From 1 December 2018, a new ‘model term’ in the Fair Work Act 2009 (Cth) provided for increased entitlements for employees to generally request more generous flexible working arrangements.

Which employees can make a request for flexible working arrangements?

The new ‘model term’ applies when an employee makes a request for a change in their working arrangements and they are covered under a Modern Industry Award (generally meaning they earn less than $145,400 per annum). Eligible employees who have been employed in a business for at least 12 months are permitted to then make a request for flexible working arrangements.

The Fair Work Act allows employees to request a change in working arrangements in the following circumstances:

a)    The employee is a parent or carer;

b)    The employee has a disability;

c)    The employee is aged 55 years or older; or

d)    The employee is experiencing domestic violence.

For instance, a parent or carer who is returning to work after taking leave in relation to the birth or adoption of a child may request to work part-time to assist in caring for the child.

When a request is made

The request by the employee must be made to the employer in writing.

Once an eligible request is received, the employer must assess that request and discuss it with the employee. An employer must have regard to the needs of the employee, the consequences for the employee if the requested changes are not made, any reasonable business grounds for the business and whether or not there are any changes in working arrangements that the employer can offer so as to better accommodate the employee’s circumstances.

An employer must provide a response within 21 days stating whether the request is granted or refused. If refused, reasons for that decision must be given to the employee in writing.

An employer may generally only deny a request for flexible working arrangements on reasonable business grounds. That is a broad definition and includes many factors such as (not an exhaustive list):

  1. The employer is unable to change the working arrangements of other employees to accommodate the requested working arrangements.
     
  2. The requested working arrangements would result in a loss in efficiency.
     
  3. The requested working arrangements would likely have a negative impact on customer service.

Take away message

The focus of the above new ‘model term’ in the Fair Work Act is to encourage open discussions between the employer and employee to try and accommodate to an eligible employee’s circumstances where possible.

If employers do not adhere to the requirements of the model term, employees have the right to raise a dispute.

If you have received a request for flexible working arrangements or wish to discuss how this new update may affect your business, please don’t hesitate to contact
Grant Butterfield or Simon Kumar on 02 4626 5077. 

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.

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