What the Westpac flexible work ruling means for healthcare employers

The decision that’s changing flexible work

In Karlene Chandler v Westpac Banking Corporation [2025] FWC 3115, the Fair Work Commission found Westpac did not meet its obligations when it refused a part-time employee’s flexible work request to work remotely so she could manage school drop-offs and pick-ups. 

The ruling confirmed that Westpac:

• Failed to respond to the request within 21 days, as required by the Fair Work Act 2009 (Cth).
• Provided only cursory reasons for refusal, without showing evidence of genuine consultation.
• Relied on a blanket “return to site” policy rather than considering the employee’s personal circumstances.

The Commission also criticised an email sent to the employee stating that “working from home is no substitution for childcare,” noting it reflected a lack of understanding of the legislative process for flexible work requests.

What this means for healthcare employers

The decision has implications far beyond banking. For healthcare practices, where flexible hours, carer responsibilities and workforce shortages intersect daily, it’s a reminder that process is just as important as policy.

1. Meet the 21-day clock and consult properly – Employers must provide a written response within 21 days. Before refusing, you must discuss the request, consider its impact on the employee, and provide specific, evidence-based reasons.
2. Evidence beats policy – General hybrid or “onsite only” rules are not valid grounds for refusal. You must show evidence that the request would significantly impact patient care, operations or safety. 
3. Document your consultation – Keep clear records of discussions, alternative options offered, and reasons for any decision. The Commission expects to see a paper trail showing genuine consideration.
4. Enterprise agreements don’t override the law – Even if a workplace or enterprise agreement defines certain work arrangements, employees still have a legal right to make flexible work requests under the Act.
5. Train your leaders – Many practice managers and clinic owners aren’t aware of how prescriptive the FWC process is. A single poorly worded email can become evidence in a dispute.

Practical checklist for clinics and health businesses

The Fair Work Commission’s decision in Karlene Chandler v Westpac Banking Corporation [2025] FWC 3115 offers clear guidance on what compliance looks like in practice.

• Update your flexible work policy to mirror the Act’s required steps and documentation.
• Create a standard response template that captures consultation notes, considered consequences and detailed business grounds.
• Build an evidence pack for refusals, including workload distribution, service levels, clinical coverage and patient experience impacts.
• Offer reasonable alternatives and record why each was accepted or declined.
• Audit your rosters and hybrid rules to ensure they accommodate carers’ needs without compromising patient care.
• Brief your leadership team on why this ruling is considered a landmark by national media and what “reasonable business grounds” really means.

A turning point for hybrid healthcare work

The Westpac ruling marks a shift in how flexibility is viewed across Australian workplaces. For healthcare employers, it is both a compliance lesson and a culture check – flexibility is no longer optional, but a protected right.

The bottom line

This decision sends a clear message to healthcare employers: flexibility is here to stay, and compliance with the law is non-negotiable. By tightening your processes now, you’ll not only reduce legal risk but also strengthen retention, trust and culture across your workforce.

Reference

This article draws on findings from the Fair Work Commission decision Karlene Chandler v Westpac Banking Corporation [2025] FWC 3115, published October 2025, and accompanying FWC summaries and national media reporting.