4 Reasonable Business Grounds in Flexible Work Arrangements - What does that mean?

Flexible work arrangements are another hot topic for human resources teams in workplaces.

Any request for a flexible work arrangement creates a workplace right for an employee.

However, Employers can refuse a request if there are reasonable business grounds to do so.

Michael Fogo v Boeing Aerostructures Australia Pty Limited [2024] FWC 3037 (8 November 2024)

Transitioning to retirement an employee of a manufacturer for components of commercial aircrafts made a flexible working arrangement request to work from home every Monday and Friday.

The recent Fair Work Commission case of Michael Fogo v Boeing Aerostructures Australia Pty Limited [2024] FWC 3037 (8 November 2024) is another interesting case that delved into dealing with a flexible working arrangement and reinforced what are reasonable business grounds to refuse a request.

Grouped together the Employer – Boeing Aerostructures Australia provided 4 reasonable business grounds to refuse the request.

Operational Efficiency:

1. Team Collaboration: Boeing emphasized that Mr Fogo's role required close collaboration with his team during standard working hours. They argued that altering his schedule would disrupt team dynamics and hinder effective communication.
2. Project Timelines: The company highlighted that their projects operated on strict timelines. Adjusting Mr Fogo's hours could delay project milestones, affecting overall productivity.

Customer Service Impact:

1. Client Meetings: Mr Fogo's position involved direct interaction with clients. Boeing contended that flexible hours might lead to missed meetings or delayed responses, negatively impacting client relationships.
2. Availability: The employer stressed the necessity for Mr Fogo to be available during core business hours to address client inquiries promptly.

Cost Implications:

1. Overtime Costs: Boeing argued that accommodating the flexible arrangement would require other staff to work overtime to cover gaps, leading to increased labour costs.
2. Training Expenses: They also mentioned potential costs associated with training additional staff to handle duties during Mr Fogo's adjusted hours.

Practicality of Accommodation:

1. Staffing Constraints: The company noted that their current staffing levels were optimised for existing schedules. Modifying one employee's hours would necessitate complex adjustments for others, which they deemed impractical.
2. Resource Allocation: Boeing expressed concerns about reallocating resources to accommodate the request, stating it would strain their operational capacity.

Outcome and decision from the Fair Work Commission

The Fair Work Commission found that Boeing Aerostructures Australia's refusal of Mr Fogo's flexible working arrangement request was based on reasonable business grounds.

·?????? Operational efficiency

·?????? Customer service impact

·?????? Cost implications

·?????? Practicality of accommodation of request

The Commission determined that the employer had adequately demonstrated that the proposed arrangement would have a negative impact on operational efficiency and productivity, and would incur significant costs. Therefore, the application was dismissed.

The Fair Work Commission provided several views which can be utilised as takeaways for Employers:

·?????? Employers should provide clear and reasonable business grounds when refusing a flexible work request

·?????? It is crucial for employers to engage in genuine discussions with employees regarding their requests and explore alternative accommodations

·?????? Employers must document all interactions and decisions related to flexible work requests

·?????? Employers should be aware that the Fair Work Commission will balance the employee's personal considerations against the business's operational needs

Our Employment Lawyers at?South Geldard Lawyers?have essential expertise in preventing these issues occurring in the first place and helping with the legal issues when they do occur. Feel free to reach out on 1800 329 448 or via email to?Jonathan Mamaril, Director at?[email protected].? All Employers receive an obligation free consultation.

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Written By

Jonathan Mamaril

Director

Head of Employment Law

South Geldard Lawyers

MCom GDLP LLB BA

[email protected]

07 4936 9100