Flexible working arrangements are employment practices that provide employees with greater control over when, where, and how they perform their work duties. These arrangements move away from traditional fixed schedules and office-based work models to accommodate diverse employee needs while maintaining productivity and business outcomes.

Types of flexible working arrangements

Time-based flexibility

Flexible hours (flextime)

Employees can vary their start and finish times within agreed parameters, often maintaining core hours when everyone must be present (e.g., 10 AM – 3 PM core hours with flexibility around them).

Compressed work weeks

Full-time hours condensed into fewer days, such as four 10-hour days instead of five 8-hour days, providing employees with additional days off.

Part-time work

Reduced hours with proportional pay and benefits, allowing employees to work fewer than standard full-time hours on a permanent basis.

Job sharing

Two or more employees share the responsibilities, hours, and benefits of one full-time position, dividing duties by time, task, or client.

Annualised hours

Employees work a set number of hours over a year rather than weekly, allowing for seasonal variations and personal needs.

Location-based flexibility

Remote work (telecommuting)

Employees work from home or other locations outside the traditional office environment on a regular basis.

Hybrid work models

Combination of office-based and remote work, typically involving specific days in the office and days working remotely.

Hot-desking

Shared workspace arrangements where employees don’t have assigned desks, supporting flexible office attendance.

Satellite offices

Smaller office locations closer to employees’ homes, reducing commute times while maintaining some office-based collaboration.

Role-based flexibility

Results-only work environment (ROWE)

Focus on outcomes and deliverables rather than hours worked or location, giving employees complete autonomy over how they achieve results.

Project-based work

Employment structured around specific projects with defined start and end dates rather than ongoing roles.

Phased retirement

Gradual reduction in working hours or responsibilities as employees transition toward retirement.

Career breaks

Extended unpaid leave for personal reasons such as study, travel, or family care, with job security guarantees.

Flexible working arrangements legal framework

National employment standards

The Fair Work Act 2009 provides employees with the right to request flexible working arrangements if they:

• Have completed at least 12 months of continuous service
• Are not casual employees
• Meet specific circumstances such as caring responsibilities, disability, age over 55, or experiencing family violence

Employer obligations

Consideration requirement

Employers must genuinely consider flexible work requests and can only refuse on reasonable business grounds.

Response timeframe

Employers must respond to requests within 21 days, providing written reasons if the request is refused.

Reasonable business grounds

Valid reasons for refusal include inability to reorganise work, detrimental impact on efficiency, increased costs, lack of replacement staff, or loss of productivity.

Consultation process

Employers should discuss alternatives if the initial request cannot be accommodated in its original form.

Flexible working benefits for employees

Work-life balance

Better integration of personal and professional responsibilities, reducing stress and improving overall wellbeing.

Reduced commuting

Saves time and money while reducing environmental impact through decreased travel requirements.

Increased autonomy

Greater control over work environment and schedule enhances job satisfaction and sense of ownership.

Career continuity

Enables employees to maintain employment during life changes such as parenthood, caring responsibilities, or health issues.

Improved productivity

Many employees report higher productivity when working in their preferred environment and schedule.

Cost savings

Reduced expenses for commuting, work clothing, and meals can provide significant financial benefits.

Flexible working benefits for employers

Talent attraction and retention

Flexible arrangements help attract diverse candidates and retain valuable employees who might otherwise leave.

Increased productivity

Studies consistently show productivity improvements when employees have control over their work arrangements.

Reduced overhead costs

Less office space, utilities, and facilities expenses when employees work remotely or share workspaces.

Extended operating hours

Flexible schedules can provide customer service coverage across different time zones or extended business hours.

Enhanced employee engagement

Flexible arrangements demonstrate trust and respect, leading to higher engagement and loyalty.

Diversity and inclusion

Accommodates employees with various needs, backgrounds, and life circumstances, improving organisational diversity.

Flexible working implementation considerations

Technology requirements

Communication tools

Video conferencing, instant messaging, and collaboration platforms to maintain team connectivity.

Cloud-based systems

Access to files, applications, and systems from any location with appropriate security measures.

Performance monitoring

Tools to track productivity, project progress, and goal achievement without micromanaging.

Cybersecurity

Robust security protocols to protect company data when employees work from various locations.

Policy development

Clear guidelines

Written policies outlining eligibility criteria, application processes, and expectations for flexible arrangements.

Performance standards

Defined metrics for measuring success and productivity in flexible work environments.

Communication protocols

Established methods for staying connected, scheduling meetings, and maintaining team collaboration.

Equipment and support

Policies regarding provision of technology, ergonomic equipment, and technical support for remote workers.

Management training

Leadership development

Training managers to lead remote and flexible teams effectively, focusing on outcomes rather than presence.

Trust building

Developing skills to manage by results and maintain team cohesion without constant supervision.

Communication skills

Enhanced techniques for virtual meetings, feedback delivery, and team building in flexible environments.

Flexible working common challenges and solutions

Communication and collaboration

Challenge: Reduced face-to-face interaction may impact team dynamics and information sharing.

Solution: Implement regular check-ins, virtual team-building activities, and structured communication schedules.

Performance management

Challenge: Difficulty monitoring productivity and ensuring accountability in flexible arrangements.

Solution: Focus on output-based performance metrics and establish clear deliverables and deadlines.

Workplace culture

Challenge: Risk of creating “two-tier” culture between office-based and remote employees.

Solution: Ensure equal opportunities, recognition, and career development for all employees regardless of work arrangement.

Technology and security

Challenge: Maintaining data security and providing technical support for distributed workforce.

Solution: Invest in robust cybersecurity measures, provide appropriate equipment, and establish clear IT support protocols.

Flexible working arrangements best practices

Start with pilot programmes

Test flexible arrangements with small groups before organisation-wide implementation.

Regular review and adjustment

Continuously evaluate effectiveness and make improvements based on feedback and results.

Inclusive implementation

Ensure flexible options are available to all eligible employees, not just certain roles or levels.

Clear boundaries

Establish expectations about availability, response times, and work-life separation.

Investment in relationships

Prioritise team building and relationship maintenance in flexible work environments.

Outcome-focused culture

Shift from time-based to results-based performance evaluation and recognition.

Flexible working arrangements future trends

Hybrid-first models

Organisations designing work models that assume flexibility as the default rather than exception.

AI and automation

Technology enabling more sophisticated remote work capabilities and productivity monitoring.

Global talent access

Flexible arrangements allowing companies to hire talent regardless of geographic location.

Personalised flexibility

Customised arrangements tailored to individual employee needs and preferences rather than one-size-fits-all approaches.

Wellbeing integration

Flexible arrangements increasingly designed around employee mental health and overall wellbeing outcomes.

Strategic considerations for HR professionals

Change management

Implementing flexible working arrangements requires careful change management to address resistance and ensure smooth transitions.

Cultural transformation

Moving to flexible work models often requires fundamental shifts in organisational culture and management philosophy.

Measurement and evaluation

Developing appropriate metrics to assess the success of flexible working initiatives and their impact on business outcomes.

Legal compliance

Ensuring flexible arrangements comply with relevant employment legislation, workplace health and safety requirements, and taxation obligations.

Equity and fairness

Maintaining fairness across all employee groups and ensuring flexible arrangements don’t inadvertently create disadvantages for certain employees.

Flexible working arrangements have evolved from nice-to-have benefits to essential components of modern employment strategies. Success requires thoughtful implementation, appropriate technology, clear policies, and a culture that values results over traditional measures of work.