The Council of Small Business Organisations Australia (COSBOA) has welcomed the decision of the Senate not to adopt recently proposed amendments to the Fair Work Act seeking to federally mandate work from home entitlements for employees.

COSBOA Chair Matthew Addison said whilst there has been a lot of discussion around mandating work from home in recent months, these changes would have created a blanket obligation that disregards the operational realities of many industries, adding compliance pressure and complexity for small business employers.

“Small businesses make up more than 97 per cent of all Australian businesses, yet too often they are treated as though they have the same capacity as large corporates,” said Mr Addison.

“Mandating remote work in circumstances described as ‘practical’ – without clear, real-world guidance – risks exposing small employers to legal disputes and absolutely undermines their capacity to meet customer and client expectations. We are satisfied that the Senate recognised these risks and did not proceed with the amendments.”

Mr Addison said small business employers remain concerned at the cumulative impact of ongoing workplace reform.

“Since 2022 there have been 35 major changes to the Fair Work Act, with all but one applying equally to small businesses. A business with five staff is treated the same as a corporation with 10,000. That imbalance must be addressed.”

COSBOA’s position is that workplace laws must support genuine flexibility while remaining practical and proportionate for small business.

COSBOA also raised concerns that expanded flexible work requests without requiring employees to provide reasons, would weaken good faith dialogue and make it harder to balance workplace operational needs.

In addition, COSBOA has also highlighted broader risks such as competitive disadvantages for businesses unable to offer remote work, workforce disruption in frontline sectors, and increased compliance and liability if employers were required to monitor or insure home environments.

Mr Addison said the Senate’s decision avoided an outcome that would have delivered more rigidity and red tape, but the wider challenge remains.

“Small businesses want workplace laws that are fair, balanced and workable in practice. They already go to great lengths to accommodate flexibility where possible. What we need now are reforms that genuinely support cooperation and productivity, not blanket rules that small businesses cannot realistically implement.”