
New Working-from-Home Rules Under the Clerks Award: What Does This Mean for Payroll?
Working from home has become a normal part of many Australian workplaces. But while flexible arrangements can benefit businesses and employees, it’s important that working hours, entitlements and payroll records remain accurate.
From the first full pay period starting on or after 26 October 2026, new working-from-home provisions apply under the Clerks – Private Sector Award 2020.
The changes introduce a formal process for requesting and documenting working-from-home arrangements. They also allow certain changes to working hours and breaks by agreement, which can have implications for payroll processing and record keeping.
For employers with clerical, administrative or accounts staff covered by the Clerks Award, it’s a timely reminder to check that existing arrangements are properly documented and reflected in payroll.
What’s Changing Under the Clerks Award?
The new provisions allow employees covered by the Clerks Award to request working-from-home arrangements in writing.
Employers are not automatically required to approve these requests. However, where an arrangement is agreed upon, it must be documented in writing.
The provisions also allow certain Award arrangements concerning ordinary working hours, breaks and flexibility to be modified by agreement.
From a payroll perspective, the key consideration is ensuring that the employee’s agreed working arrangements align with how their hours and entitlements are recorded and processed.
How Could the Changes Affect Payroll?
Working from home does not automatically change an employee’s pay rate or entitlements.
However, where an arrangement changes when or how an employee works, there may be payroll implications.
1. Ordinary Working Hours
Employees working from home may have different start and finish times compared with their usual office schedule.
Depending on the arrangement, employers and employees may agree to changes affecting when ordinary hours are worked.
What this means for payroll: Employers should ensure timesheets, employee schedules and payroll settings reflect the agreed working hours. Any hours worked outside the applicable ordinary hours provisions must be assessed for overtime or penalty rate entitlements.
2. Meal Breaks and Rest Breaks
Working remotely can change how employees structure their working day, particularly where flexible start and finish times are agreed.
The updated Award permits certain modifications to break arrangements as part of an agreed working-from-home arrangement.
What this means for payroll: Meal and rest breaks should be managed in accordance with the applicable Award provisions. Where unpaid meal breaks affect paid hours, timesheets and payroll calculations must remain accurate.
3. Written Agreements and Payroll Records
One of the most important changes is the requirement to document agreed working-from-home arrangements.
Written agreements must include:
The agreed days or pattern of working from home.
The location where the employee will work.
Any relevant Award terms modified by agreement.
Any facilitative agreements made under the Award.
The commencement date.
How the arrangement can be varied or ended.
Employers must provide a copy of the agreement to the employee and retain it as a time and wages record.
What this means for payroll: Working-from-home agreements should be readily accessible as part of the business’s employment and payroll record-keeping processes.
What Should Employers Check?
If your business employs staff covered by the Clerks Award, now is a good time to review the following areas.
| Payroll Area | What to Check |
|---|---|
| Award coverage | Confirm which employees are covered by the Clerks Award. |
| Ordinary hours | Ensure agreed hours align with employee schedules and payroll settings. |
| Overtime | Confirm additional hours are correctly recorded and paid. |
| Breaks | Check that break arrangements are consistent with Award requirements. |
| Timesheets | Ensure employees accurately record hours worked remotely. |
| Record keeping | Retain written WFH agreements as time and wages records. |
The new provisions apply specifically to employees covered by the Clerks Award. Other modern awards and enterprise agreements may have different requirements.
What About Existing Working-from-Home Arrangements?
Businesses with employees already working from home should review their current arrangements.
For example, an employee may have an informal agreement to work from home two days per week, with different start and finish times on those days.
Employers should check whether these arrangements need to be formally documented and whether the hours being worked are accurately reflected in payroll records.
The new provisions allow employers and employees to formalise existing working-from-home arrangements.
This is also an opportunity to identify any differences between agreed hours, actual working hours and payroll calculations.
What Should Businesses Do Now?
Employers with staff covered by the Clerks Award should consider five practical steps:
- Confirm Award coverage: Identify which employees are covered by the Clerks Award.
- Review existing arrangements: Check whether working-from-home arrangements are properly documented.
- Check payroll settings: Ensure ordinary hours, breaks and overtime arrangements are correctly reflected.
- Review timekeeping: Confirm that employees working remotely accurately record their hours.
- Maintain employee records: Retain written working-from-home agreements with the appropriate employment records.
Even where working-from-home arrangements do not change employee pay, maintaining accurate documentation remains important.
Keeping Your Payroll Compliant
Working-from-home arrangements provide valuable flexibility, but they shouldn’t create uncertainty around employee hours, entitlements or payroll records.
The new Clerks Award provisions are a timely reminder that agreed working arrangements need to be documented and payroll processes should accurately reflect how employees work.
At Beam Bookkeeping, we support businesses with payroll processing, employee record keeping and ongoing payroll administration.
If your business has changed employee working arrangements, or you’re unsure whether your payroll settings reflect agreed working hours and entitlements, our team can help review the payroll implications and identify areas that may need attention.
Need help keeping your payroll on track?
Visit www.beambk.com.au or call (02) 4957 3174 to speak with the Beam Bookkeeping team.
This article provides general information and does not constitute legal, HR or workplace relations advice. Employers should seek professional advice appropriate to their circumstances.