Flexible Working Arrangement Response Letter

What Is a Flexible Working Arrangement Response Letter?

A Flexible Working Arrangement Response Letter is a formal document used by employers to accept or refuse an employee's request to change their working conditions. In Australia, this is not just standard administrative correspondence. It is a legal requirement under the Fair Work Act 2009. When an employee who is eligible to make a request asks for flexible work, the employer must reply in writing.

The response letter serves as the official record of the employer's decision. It outlines whether the business will support the change, the specific terms of the new arrangement, or the detailed reasons why the request cannot be approved. For small business owners, tradies, and incorporated companies, this letter protects the business if a dispute arises later. It proves that the decision was made within the legal timeframe and based on valid business reasons.

This document is distinct from other employment letters because it carries strict procedural rules. You cannot accept or refuse a request over a casual chat or via a text message. The law requires a formal written response to ensure clarity and fairness for both parties.

When to Use This Document

You must use this document whenever you receive a written request for flexible work from an eligible employee. It is important to know that not every employee can ask for this arrangement. To be eligible, an employee must meet specific criteria, such as being a parent or carer, having a disability, being pregnant, or experiencing family violence.

When you receive such a request, the 21-day clock starts ticking immediately. You should use the Response Letter immediately after you have made your decision. Even if you intend to say yes, putting it in writing is essential. It confirms the new hours, location, or duties and prevents misunderstandings about pay rates or availability.

You also need this letter when you want to negotiate. You might not be able to agree to the exact request the employee submitted. For example, a receptionist might ask to work every day from home, but you need them in the office two days a week. You would use this letter to propose a compromise. This letter is the appropriate place to offer a trial period or alternative hours. It is a practical tool for finding a middle ground without stepping outside the law.

Key Sections and Required Elements

A compliant response letter needs specific parts to satisfy the Fair Work Act. Missing one of these elements can render the response invalid, which could lead to a claim against the business.

Header and Reference Details

Start with the date, the employee's name, and the date of their original request. This section establishes that you are responding within the mandatory 21-day window. Reference the specific clause of the Fair Work Act if you wish to be formal, but ensure the timeline is clear.

The Decision Statement

You must state your decision clearly. Ambiguity causes problems. Use plain language to say you grant the request, refuse it, or offer an alternative. Phrases like "we think this might be okay" are not helpful. State clearly that the request is approved or refused. If you are approving it, confirm that it will become a permanent change unless otherwise specified.

Statement of Reasons

If you refuse the request, this section is the most critical part of the letter. The law requires you to provide "reasonable business grounds" for the refusal. You cannot simply say you do not like the idea. You must cite specific reasons found in the Fair Work Regulations. These might include the impact on customer service, the inability to reorganise work among other staff, or a detrimental effect on productivity. If you do not list these reasons in writing, the refusal may be considered unlawful.

Details of the Arrangement

When you grant the request, you need to outline exactly what the new working conditions look like. This includes the start and finish times, the days of the week, and the location of work. If the employee is moving to remote work, you should outline any equipment provisions. For example, you might list that the company will provide a laptop and monitor. You should also specify if the arrangement is for a set period or ongoing. Many businesses include a clause noting that the arrangement will be reviewed after three or six months.

Sign-off

The letter must be signed by a person with authority, such as a business owner, manager, or director. This validates the document as an official company response.

How to Write a Flexible Working Arrangement Response Letter (Step by Step)

Writing this letter does not require you to be a lawyer, but it does require attention to detail. Follow these steps to ensure your response is legally sound and practical for your business.

Step 1: Check Eligibility and Timing

Before you write, confirm the employee is actually eligible to request flexible work. If they are not, you can write back stating that the statutory right to request does not apply. If they are eligible, mark your calendar. You have 21 days from the date you received their request to respond.

Step 2: Discuss the Request

Do not write the letter immediately upon receiving the request. Meet with the employee first. Discuss their needs and how the arrangement might work for the business. This is a legal requirement known as consultation. Use this meeting to explore solutions. If you run a trade business, discuss how a shifted schedule affects onsite jobs. If you run an office, discuss how remote work impacts team collaboration. Make notes during this meeting. You can refer to these notes in your letter to show you genuinely considered the request.

Step 3: Determine Your Decision

Decide if you can grant the request as is, grant it with changes, or refuse it. If you are refusing, ensure your reasons are solid. Ask yourself if the refusal is based on reasonable business grounds. For instance, will the arrangement cost too much money? Will it make it impossible to roster other staff fairly? If the answer is yes to these questions, you have grounds for refusal.

Step 4: Draft the Response

Start writing. Address the employee directly. State clearly that you are responding to their request dated [Date].

If granting:

• Clearly state you approve the request.
• List the new hours and days.
• Mention any trial period. A common practice is to say, "We will trial this arrangement for three months, ending on [Date]."
• Include instructions for timesheets or payroll if hours change.

If refusing:

• State clearly that you cannot grant the request.
• List the specific reasons from Regulation 2.42. Be detailed. Instead of saying "It affects the business," say "The requested changes mean we would not have enough staff available to answer customer calls on Friday afternoons."
• If possible, suggest an alternative. "We cannot support a five-day remote work week, but we can support two days."

Step 5: Review and Send

Check the letter against the legal requirements. Did you sign it? Did you provide reasons for refusal? Is it within 21 days? Once satisfied, send it to the employee. It is best practice to send it via email so there is a digital timestamp, but provide a signed copy as well.

Common Mistakes to Avoid

Many Australian employers fall into traps when handling these requests. Avoiding these mistakes will save you time and money at the Fair Work Commission.

Missing the Deadline

The most common error is missing the 21-day deadline. The Fair Work Ombudsman is strict on this. If you get busy and forget to reply, you are in breach of the Act. Even if you intended to say yes, failing to reply in time gives the employee grounds to escalate the issue. Set a reminder for the day you receive a request.

Vague Reasons for Refusal

Saying "no" is allowed, but you must explain why properly. Simply stating "business needs" is not enough. You must be specific. A vague refusal makes it look like the decision was discriminatory or arbitrary. It also makes it very difficult for you to defend your position if the employee challenges the decision.

Verbal Responses Only

You might have a great relationship with your staff and prefer to talk things out. However, a verbal agreement is not legally sufficient for a flexible work request. Even if you say yes in a meeting, you must follow it up with the written letter. Without the letter, the terms of the arrangement are not clearly defined, and you have no proof that you met your legal obligations.

Ignoring Award or Agreement Requirements

Some Modern Awards and Enterprise Agreements have extra steps. They might require you to have a specific type of meeting or fill out a specific form. Check the relevant award for your industry before you send your letter. For example, the Medical Practitioners Award or the Building and Construction Award may have specific clauses regarding hours of work that you need to reference.

Forgetting WHS Obligations

If the request involves working from home, you must consider Work Health and Safety (WHS). A common mistake is approving remote work without checking the home workspace is safe. While you do not need to do a full home inspection, you should discuss ergonomics and safety with the employee. Your response letter can state that the approval is subject to the employee maintaining a safe home office environment.

Legal Considerations (AU)

Navigating the legal landscape of flexible work requires a solid understanding of federal and state laws.

The Fair Work Act 2009

This is the primary legislation. Section 65 of the Act grants eligible employees the right to request flexible work. Section 65(5) states that the employer must give the employee a written response to the request within 21 days. This is non-negotiable.

Reasonable Business Grounds

The Fair Work Regulations 2009, specifically Regulation 2.42, define the grounds on which you can refuse. These grounds are limited. You can refuse if the arrangement would be too costly, have a significant negative impact on productivity, make it difficult to recruit other staff, or significantly impact customer service. You cannot refuse just because you prefer staff in the office. Your response letter must link your refusal to one or more of these specific grounds.

General Protections and Discrimination

You must ensure your decision does not breach the General Protections provisions of the Fair Work Act. It is unlawful to take adverse action against an employee because they have a workplace right, which includes asking for flexible work. Furthermore, you must comply with anti-discrimination laws such as the Sex Discrimination Act 1984 (Cth). Refusing a request because an employee is pregnant or has carer responsibilities is illegal. If you refuse a request from a parent, ensure your reason is purely business-related and document it well.

State Variations: Western Australia

Most Australian businesses fall under the national system. However, if you operate in Western Australia as an unincorporated sole trader, partnership, or trust, you might be under the state Industrial Relations Act 1979 (WA). The rules are very similar, but the dispute resolution process differs. If you are a WA business not covered by the Fair Work Act, you should check with the WA Industrial Relations Commission to ensure your response letter meets their specific standards.

Privacy Act 1988

If you approve a remote work arrangement and your business has an annual turnover of more than $3 million, you must consider the Privacy Act 1988. Employees handling customer data from home creates privacy risks. Your response letter, or an accompanying policy, should remind the employee of their obligations regarding data security and confidential information. You might link to your Privacy Policy in the response letter.

Enterprise Agreements

Always check your Enterprise Agreement. Sometimes these agreements include better terms for employees than the Act. If your agreement has a specific process for flexible work, you must follow that process. The agreement might require a formal review meeting or a different dispute resolution process. Your response letter should confirm that you have followed the specific steps outlined in the agreement.

Frequently Asked Questions

Can I change my mind after sending the response letter?

If you have granted the request, it is difficult to revoke it unilaterally once the employee has started the new arrangement. You can generally only revoke it if you genuinely believe the arrangement is not working and you follow a proper process, often involving consultation. It is safer to use a trial period initially so you can review the arrangement before making it permanent.

What happens if the employee refuses to sign or accept the response?

The requirement is on you to provide the response, not on the employee to sign it. If they disagree with your refusal, they can take the matter to the Fair Work Commission. Ensure you keep a copy of the email or letter you sent as proof that you met your obligations within 21 days.

Do I have to provide equipment if I approve work from home?

There is no strict law that says you must provide equipment, but you must ensure the employee can do their job safely. Many modern awards have clauses about reimbursing expenses or providing equipment. Check the relevant award. If the employee cannot do the job without a laptop and internet, and you require them to use these tools, you generally need to provide them.

Is a casual employee eligible?

Casual employees can be eligible if they have been employed on a regular and systematic basis for at least 12 months and have a reasonable expectation of continuing employment. If a long-term casual asks for flexibility, treat it seriously and follow the same 21-day written response rule.