Working Hours Policy Template

A working hours policy shouldn’t gather dust in your employee handbook. Here’s how to create one that works.

For Australian businesses, a thoughtfully crafted working hours policy is a vital tool for balancing operational efficiency with the demand for flexible work, demonstrating your commitment to your team.

What’s included in this working hours policy template

This comprehensive template provides everything Human Resources (HR) teams need to establish clear parameters around when and how employees work. Rather than presenting rigid rules, it offers a framework that balances organisational requirements with flexible work arrangements.

Our working hours policy template covers:

• Standard office working hours and the expectation of hours worked
• Usual working location
• What an employee has to do if they are unable to attend work at the specific time and location

Each section is fully customisable to align with your organisation’s specific needs, size and industry requirements, whether you’re establishing this as a new workplace policy or refining your existing approach to working hours.

Understanding standard working hours

In the Australian context, standard working hours for full-time employees typically consist of 38 hours per week, as established by the Fair Work Act. These hours are commonly distributed across a five-day work week, with employees working 7.6 hours daily, often between 9 AM and 5 PM with appropriate breaks.

However, these standard office working hours may vary significantly depending on industry requirements, award agreements and enterprise bargaining arrangements that govern specific sectors. For example, healthcare professionals, hospitality workers and emergency services often operate on shift-based schedules that extend beyond traditional working hours.

However, while traditional schedules still form the backbone of many operations, work patterns have evolved dramatically. The shift away from rigid 9-to-5s presents an opportunity for organisations to embrace alternative arrangements like flexible working hours and remote options, meeting the modern workforce’s expectations for flexibility.

A well-crafted workplace policy addressing these changes can prevent potential grievance-handling issues before they arise.

When should an employer consider flexible working hours?

Implementing flexible working hours has become essential for organisations seeking to remain competitive in the evolving labour market. Smart organisations recognise this aspect of work.

If you’re considering flexible working hours, a thoughtful approach can transform multiple aspects of your business while supporting your employees’ needs.

Using flexible arrangements for talent acquisition

Offering flexible working hours immediately expands your candidate pool to include skilled professionals with caregiving responsibilities, study commitments or health considerations. Job listings highlighting flexible work arrangements typically receive significantly more applications, giving you access to talent that your competitors with strict policies miss entirely. Read our blog on best practice for flexible work. 

Using flexible arrangements for talent retention

When employees face changing life circumstances, flexible schedules provide alternatives to resignation. This practical approach to retention preserves institutional knowledge and reduces costly turnover. Teams with access to flexible working hours report stronger workplace loyalty, fewer grievance handling incidents, and sustained performance even during personal challenges.

Using flexible hours for work life balance

Employees who can manage personal commitments alongside work responsibilities may show better focus, reduced stress, and higher engagement. The business benefit? Lower absenteeism, stronger team morale, and a workplace culture that genuinely supports employees beyond just policy documents.

Using job sharing to extend coverage

Job sharing arrangements allow two or more employees to split a single full-time position, providing extended coverage while maintaining standard working hours. This flexible approach benefits organisations with customer-facing roles or operations requiring extended availability without incurring overtime pay obligations

What legislation surrounds working hours?

Australian working hours are governed by several key pieces of legislation that HR leaders need to navigate carefully:

• The Fair Work Act establishes the National Employment Standards, setting maximum weekly hours at 38 for full-time employees, plus reasonable additional hours.
• Work Health and Safety legislation requires the management of fatigue risks associated with working hours.
• Maximum daily working hours may be specified in industry-specific awards or agreements.
• Record-keeping requirements mandate accurate documentation of hours worked  for overtime.

All employees with at least 12 months continuous service have the legal right to request flexible arrangements in certain circumstances (parenting, caring duties). This legislation acknowledges the growing importance of work-life balance whilst providing a structured approach to workplace flexibility. However, employers can only refuse flexible working requests on reasonable business grounds, and proper consideration must be documented. 

Enterprise agreements and modern awards often contain specific provisions regarding flexible working hours and overtime pay. These enterprise agreements, modern awards, and individual employment contracts may contain provisions that go beyond the minimum standards. 

For complex scenarios involving flexible work arrangements or overtime requirements, our HR Advisory services can provide tailored guidance that aligns with your specific industry requirements and organisational needs.

Can businesses request overtime hours for their staff?

Yes, Australian businesses can request overtime, but must follow specific guidelines to remain compliant. The rules vary based on employment categories and applicable agreements.

Most awards and enterprise agreements clearly define overtime pay rates, typically time-and-a-half for initial hours and double-time thereafter. 

Employers can request reasonable additional hours beyond the standard 38-hour week, with what is reasonable depending on:

• Business operational requirements
• Employee’s personal circumstances and family responsibilities
• Whether adequate notice was provided
• Health and safety considerations
• Agreed compensation arrangements

A comprehensive workplace policy around working hours should clearly define overtime procedures, including the approval chain, documentation requirements, and compensation methods.

The policy should specify when standard office working hours end and overtime hours begin, how overtime should be requested, who has the authority to approve it, and whether compensation comes as overtime pay or time-in-lieu arrangements. This structured approach prevents grievances, supports a healthy work-life balance, and ensures compliance with relevant legislation while maintaining operational flexibility.Plus, you also need to comply with the right to disconnect law, which adds another layer of complexity to managing overtime and working hours.

Need personalised guidance on managing overtime, flexible working hours and the new right to disconnect legislation for your organisation? Download our template or get in touch with our team of business specialists to see how our Employment Operating System can support your compliance needs.