In a recent decision of the Fair Work Commission, an employer has had its reasons for refusing a flexible working arrangement request upheld on the basis that the employee’s primary caring responsibilities created a risk to the accurate and efficient performance of his duties.
In a recent decision of the Fair Work Commission (FWC), an employer has had its reasons for refusing a flexible working arrangement request upheld on the basis that the employee’s primary caring responsibilities created a risk to the accurate and efficient performance of his duties.
The matter of Gurung v Knauf Gypsum Pty Ltd [2026] FWC 2371 was an application brought by a full-time Payroll Officer in relation to a dispute about a request for a flexible working arrangement made under s 65 of the Fair Work Act 2009 (Cth) (the FW Act).
The FWC heard that the employee had requested to work from home on Mondays and Fridays on the basis that he had family responsibilities. The children did not attend daycare on these days and the employee’s wife was pregnant with their third child and also suffering from a pregnancy-related medical condition, which meant that the employee was the primary carer of his two children (aged two and four) on those days.
The employer ultimately issued a formal refusal of the request, after a number of unsuccessful discussions with the employee about alternative options. The reasons for the refusal were:
- Concerns about the employee’s ability to perform his role with “uninterrupted focus” – In particular, the employer was of the view that this was critical for his role to ensure that there were minimum to no errors while carrying out processing of payroll. It had concerns that the employee could do this whilst simultaneously being the primary carer for his two young children.
- Concerns about the employee’s performance and accuracy – Specifically, the employer had noticed a marked drop in the employee’s performance and attention to detail on days that the employee was working from home under his previous hybrid work arrangement. These concerns had been raised in his most recent performance review.
- Development target areas for the employee had not progressed to a satisfactory stage – In particular, the employee was expected to be able to own and manage end-to-end complex payroll processes without close supervision. However, the employee had not met these target areas and the employer needed to see more initiative taken by the employee given his experience and tenure.
The employee did not agree with these reasons. He was of the view that the employer’s concerns were based on assumptions it had made about caring responsibilities rather than specific evidence and examples. He also submitted that, while there were areas identified for development, these did not equate to serious or sustained issues with his performance and he was consistently performing the core responsibilities of his role. Overall, he felt the employer lacked any specific evidence that showed he was incapable of performing his role while working remotely.
The FWC was of the view that the employer’s concerns were not misplaced, considering that the children required a high level of care and attention, as they were not yet at an age where they would be considered self-sufficient.
The FWC stated that it was not feasible for the employee to take on the role of primary carer for the children whilst also carrying out payroll duties in which uninterrupted focus was required. It considered there to be a “real risk of error and inefficiency when performing an important and complex function”.
The FWC accepted the employer’s concerns about the employee’s performance and found that, on the balance of probabilities, his responsibilities as a primary carer had contributed to this issue, such that the employee had been deemed as only “partially meeting expectations” in his most recent performance review.
Finally, the FWC considered the employee’s submission that he would not be the “sole” carer of the children on the days he was working from home. However, the FWC found there was little detail provided about his wife’s capacity to provide support. In any event, it noted that his wife’s condition had also prevented him from accepting the alternative arrangements that had been proposed by the employer.
In all, the FWC found that the employer had reasonable business grounds to refuse the employee’s request for a flexible working arrangement and declined to make any orders granting the request.
Lessons for employers
Employers may only refuse a validly made request for flexible working arrangements if such refusal is on “reasonable business grounds” (s 65A of the FW Act).
This decision is helpful to employers when considering what has now become a very common request in workplaces – a request to work from home to assist employees who have caring responsibilities for young children.
Where there are reasonable concerns about an employee’s ability to accurately and efficiently perform their role while caring for young children at home, this may form reasonable business grounds for a refusal.
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