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When Employers Refuse Flexibility, They May Be Writing Their Own Downfall

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The recent ruling by the Fair Work Commission in favour of Karlene Chandler, a long-time Westpac employee, has sent shockwaves through the Australian labour market. It’s a powerful reminder that rigid return-to-office mandates are not only outdated but also risky.

The Case That Sparked a National Conversation

Karlene Chandler, a 23-year Westpac veteran, requested to work from home full-time so she could care for her young twins and avoid a gruelling two-hour commute from Wilton (NSW) to the bank’s Kogarah office.

Westpac refused, insisting that she attend in person for two days a week under its hybrid policy. Chandler took the matter to the Fair Work Commission, which found the bank had failed to genuinely consider her request and lacked reasonable business grounds to deny it.

Deputy President Tom Roberts ruled there was no doubt she could perform her role remotely; she’d done so successfully for four years.

This ruling has become a flashpoint in Australia’s work-from-home debate, raising tough questions about what “flexibility” really means in 2025.

“While a return mandate is generally valid … some workers are successfully challenging their bosses, clearing a path for more employees to secure work-from-home arrangements.” — The Guardian

Why This Matters for Employers

Employers who cling to outdated attendance mandates risk being left behind — both legally and competitively.

  • Talent retention: One in two Australian workers is thinking about leaving or actively job-hunting, with a lack of flexibility among the top reasons. (Korn Ferry)
  • Workplace cost: The Australian HR Institute (AHRI) found that 31% of employers who tightened office requirements experienced negative hiring or retention outcomes.
  • Legal exposure: The Fair Work Ombudsman encourages open, good-faith consultation on flexible arrangements; failure to do so can trigger disputes or brand damage.

Hybrid work isn’t a passing trend; it’s now a core part of the employee value proposition.

“Hybrid work is a win-win for employees and employers … better focus, fewer distractions and improved work-life balance, all of which translate into meaningful productivity gains.” — Information Age (ACS)

Why It Matters for Employees

For parents, carers, and anyone seeking balance, this decision underscores that flexibility is not just a perk — it’s a right for many under the Fair Work Act 2009.

However, the ruling doesn’t grant automatic entitlement. Employees must still show they can perform effectively and propose reasonable arrangements.

If your employer resists and your wellbeing, career progression, or family life suffers, it may be time to rethink where you work. Some industries and employers are more progressive than others.

The Bigger Picture: Hybrid Isn’t Optional

Research consistently shows the direction of travel: more than 80 % of Australian employers expect hybrid working to remain or grow in the coming years.

Yet, some companies still demand full-time attendance, even where they lack adequate facilities, forcing staff to hot-desk or share desks. For what gain? If employees are delivering results remotely, why fight a losing battle?

The next shift may already be here: the four-day work week movement is gathering pace. Flexibility is no longer just about location; it’s about rethinking productivity and trust.

A Call to Action for Employees and Employers

If you’re an employee:

  • Know your rights under the Fair Work Act.
  • Document your performance and show how flexibility supports productivity.
  • If your employer won’t adapt, consider finding one that values work-life balance, or explore a career portfolio that gives you control over when and how you work.

If you’re an employer:

  • Stop equating “presence” with performance.
  • Build evidence-based hybrid policies, not blanket mandates.
  • Recognise that flexible work is a competitive advantage, one that drives loyalty, wellbeing, and retention.

The Bottom Line

The Chandler v Westpac ruling may well become a defining moment in Australia’s evolving world of work. Employers who embrace flexibility will thrive. Those who resist will lose their best people and their reputation.

It’s time to stop fighting the future and start designing it.

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