Fair Work Commission puts banks under pressure after landmark work-from-home ruling in Westpac case

Bosses in the financial sector across Australia are under pressure to overhaul their work-from-home policies after a landmark Fair Work Commission ruling found Westpac broke the law when it denied a mother’s remote work request.

The Finance Sector Union (FSU) has warned that excuses like “collaboration” and “culture” will no longer justify rejecting flexible work.

The union says it has written to all the major banks, urging them to review their policies or risk breaching workplace law.

“We’ve told every major bank to get their own house in order. Fix rejected work-from-home requests, comply with the law, and stop acting like flexibility is a privilege,” FSU National Assistant Secretary Nicole McPherson said.

The ruling centred on Karlene Chandler, a Westpac employee who asked to work from home so she could care for her two six-year-old children, including taking them to and from school.

Westpac knocked back her request, along with a proposal to work two days a week from the bank’s Bowral branch instead of its Sydney office.

The Commission found Westpac failed to respond to Ms Chandler within 21 days, did not genuinely engage with her, and gave no clear reason for its decision.

“Westpac broke the law when it ignored its own worker’s rights and we’re putting every other bank on notice that they can’t do the same,” Ms McPherson said.

“While the big banks cut thousands of jobs, offshore work and replace people with AI, they’re still trying to force remaining staff back into offices under the guise of teamwork. It’s hypocrisy at its worst.

“Our members have proven they can deliver from home. Flexibility is not a perk, it’s a legal right and we’ll keep fighting to make sure every worker in finance can exercise it.

“This ruling makes clear that employers can’t hide behind buzzwords like ‘collaboration’ or ‘culture’ to deny flexible work,” she added.

Westpac chief executive Anthony Miller defended the bank’s approach earlier in the week, telling investors the company had one of the most flexible work-from-home policies in the sector.

But the FSU says it will use the Westpac decision to support other finance workers who face rejected remote-work requests, warning banks that the era of vague justifications is over.