Clerks Award to include a “working from home” clause from 26 October 2026

The Clerks – Private Sector Award 2020 is being amended from 26 October 2026 to include a new clause dealing with working from home arrangements. This is the first time that any modern award has done so.

The new clause will not give employees an automatic right to work from home, but will provide for an option where employers and employees can agree to working from home arrangements, if they wish.

Prior to the implementation of the new clause, typical working from home arrangements did not sit well in the award, given the rigid rules about break times and the requirement for work to be performed in one continuous block. Often in working from home scenarios employees enjoy more flexibility around when they take their breaks and may not always work continuously (for example, if they log-off to perform a task and then make up the time later in the day). The new working from home clause provides more flexibility for such arrangements.

You can read the Fair Work Commission’s (FWC) decision containing the new clause here. 

The changes do not affect existing provisions in the Fair Work Act 2009 (Cth) which give certain employees the right to request flexible working arrangements (namely those with at least 12 months services and who require the arrangement for special circumstances such as family or caring responsibilities).

We explain how the new provisions work below.

Will employees have a right to work from home?

No.

The FWC rejected the unions’ proposal for a “right to request” term that would have presumed approval and allowed refusal only on reasonable business grounds. 

Instead, a new clause 5A gives employees a simple right to make a request, and allows the employer to agree (or disagree). There is no requirement that a refusal be reasonable.

How does an employee make a request?

A request must be made in writing and must specify the day or days of the week, or the number, proportion or pattern of days, the employee proposes to work from home.

What award terms can be changed?

One of the practical problems clause 5A solves is that many existing working from home arrangements may not sit neatly with the award’s rules on hours and breaks. Clause 5A.4 allows the employee and employer to agree to modify how certain terms apply, specifically:

1. the requirement for ordinary hours to be worked continuously (clause 13.6(a));
2. the employer’s discretion over when ordinary hours are worked (clause 13.6(b)); and
3. the timing of rest breaks and meal breaks (clauses 15.2 and 15.3).

New clause 5A.5 makes clear that employers and employees can also use the existing “facilitative agreement” mechanism in the award to agree to vary other terms as part of a working from home arrangement, namely:

1. alteration of the spread of ordinary hours under clauses 13.4(c) or 25.2(c); 
2. making up time taken off during working hours under clauses 13.8 or 26.5; 
3. changes to times at which the employee will start and finish a shift under clause 26.4(b);
4. time off instead of payment for overtime under clauses 23 or 29.

Where a working from home arrangement is agreed under these provisions there must be a written agreement stating:

1. the day(s) of the week, or the number, proportion or pattern of days, on which it is agreed the employee may work from home; 
2. the location where work is to be performed when working from home; 
3. any modification to the application of award terms in accordance with clause 5A.4;
4. any facilitative agreement in accordance with clause 5A.5; 
5. the start date of the arrangement; and 
6. how the arrangement may be varied by agreement or terminated by either party.

Importantly, nothing in the new clause alters the rules about overtime rates or penalty rates. Employees will still be entitled to overtime rates when working outside of the ordinary hours set by the award and to shift penalties for working ordinary hours at unsociable times. 

Can a request be refused?

Yes. Because clause 5A operates on a consensual basis, an employer can decline a request. The clause does not set a response time, a requirement to give reasons, or rules around having to have any grounds for refusal.

That said, two points are worth keeping in mind. First, disputes about requests may be dealt with under clause 40, the award’s dispute resolution procedure, so it pays to handle requests consistently and to keep records. Second, making a request is likely to be the exercise of a workplace right under the Fair Work Act 2009 (Cth), so employers must not treat an employee adversely because they made a request.

What about existing arrangements?

The FWC added a note to the new provisions confirming that clause 5A can be used both for a new arrangement and to formalise an existing one. For employers who already have staff working from home on an informal basis, this is a useful opportunity to document those arrangements and bring them into line with the award.

When do the new rules start?

The new clause operates from 26 October 2026.

Are there any other working from home reforms on their way?

The Clerks Award was chosen as the first award to include this clause, given the high number of clerical workers who work from home (or would like to), as their work is particularly suited to this arrangement. It is likely that similar terms will now be considered for other awards where working from home arrangements are likely to occur.

More broadly, the Victorian Government plans to implement legislation that will give eligible employees a right to work from home for up to two days per week unless this would not be reasonable. This change was due to commence this year, but it is now expected to commence on 1 July 2027.

At the federal level, a private senator’s bill (the Fair Work Amendment (Right to Work from Home) Bill 2025) includes a proposed right to request up to two working from home days per week, which employers can only refuse in limited circumstances. However, it is by no means certain that this legislation will be approved by parliament. 

Employment Hero can help you manage changes to modern awards

Keeping up with award changes like this is something Employment Hero can help you with. Our platform makes it easy to manage working from home requests, document agreed arrangements and keep the records you need, all in one place. And if you have questions about how the new rules apply to your workplace, our HR advisory team is always on hand to help you navigate the details.

Disclaimer: The information in this article is current as at 22 October 2026 and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.