Managing Flexible Work Requests: What If My Employee Wants To Work From Home?

Working from home seems like a simple request for an employee to make. But for employers, flexible working requests can quickly become complicated if they are not handled properly.  As a business owner, you are already juggling staff, customers, deadlines, compliance, and cashflow. The last thing you need is uncertainty around employment law or team conflict because one employee wants different working arrangements.

The good news? With the right process, you can handle flexible work requests fairly, legally, and confidently while still protecting your business operations.

What Is Flexible Working?

Flexible working means any change to the usual way an employee works.  This could include:

• Working from home

• Hybrid working (part office, part home)

• Different start and finish times

• Compressed work weeks

• Reduced hours

• Changing workdays

• Job sharing

• Flexible rostering

Some requests are temporary. Others are permanent.  Since COVID-19, working from home has become more common across New Zealand workplaces. But flexibility does not automatically mean every request must be approved.

What Does New Zealand Law Require?

Under the Employment Relations Act 2000, all employees in New Zealand have the legal right to request flexible working arrangements.  This applies to:

• Full-time employees

• Part-time employees

• Casual employees

• Employees with caregiving responsibilities

• Employees without children or dependants

An employee can request changes to hours of work, days of work, and place of work.  That includes working from home.

Do I Have to Say Yes?

Employers do not have to approve every request.  However, employers must:

• Consider the request properly, 

• Respond within one month, 

• Base decisions on genuine business reasons, and

• Act in good faith

A rushed or emotional decision can create legal risk.  If an employee believes their request was not fairly considered, it could damage trust, morale, or even lead to a personal grievance.

There are a number of key factors to consider when deciding whether to approve a request for flexible working conditions, particularly in relation to remote working.  

Can the Job Actually Be Done Remotely?

Not every role is suitable for working from home.  Consider:

• Does the employee need physical equipment?

• Are they customer-facing?

• Do they supervise others in person?

• Is confidentiality an issue?

• Does the role require collaboration onsite?

The key question is can the employee still perform the role effectively?

What Impact Will It Have On Productivity?

Some employees thrive working from home.  Others may struggle with distractions, motivation, communication, or time management.  You will need to consider their previous performance history, reliability, ability to work independently, communication skills, and output expectations.  This should be based on evidence, not assumptions.

What Impact Will It Have On Health and Safety Obligations?

If an employee works from home, employers still have health and safety responsibilities under the Health and Safety at Work Act.  That means considering:

• Safe workstation setup

• Ergonomics

• Electrical safety

• Mental wellbeing

• Fatigue and isolation risks

You may need a work-from-home assessment, a checklist for employees, photos of the workspace, and relevant health and safety policies.  Working from home does not remove your obligations for providing a safe working environment.  

What Impact Will It Have On Other Employees?

One flexible arrangement can affect everyone else.  Ask yourself:

• Will others need to pick up extra work?

• Could this create resentment?

• Will communication suffer?

• Does this affect customer service?

• Is it fair and consistent with similar situations?

Consistency also matters.  If you approve one employee but decline another similar request, you need a genuine reason for the difference.

What Impact Will It Have On Business Costs?

Flexible work can create additional costs, such as technology, equipment, software, security systems, and internet or phone allowances.  Employers will need to decide what the business will provide, what the employee will supply, and how any incurred expenses are handled.  This should be put in writing to ensure clarity..

What Impact Will it Have On Cybersecurity and Confidentiality?

Working remotely can increase privacy and data risks.  Consider the need for secure logins, password protection, use of personal devices, keeping client information confidential, and storage of documents at home.  This is especially important for businesses handling sensitive customer or employee data.

How Should Flexible Working Arrangements Be Documented?

Documentation is critical. If it is not written down properly, misunderstandings can happen.  Whether you approve or decline the request, keep records of:

• The employee’s request,

• Meetings and discussions,

• Factors considered,

• Final decision, and

• Reasons for the decision.  

This protects both the business and the employee.

If the request is approved, do not rely on verbal agreements.  Create a written flexible working agreement or variation to the employment agreement.  This should include:

• Workdays and hours

• Location of work

• Trial period (if applicable)

• Communication expectations

• Availability requirements

• Equipment responsibilities

• Health and safety expectations

• Review dates

• Performance expectations

• Confidentiality obligations

A trial period of a few months can be very helpful to assess whether the flexible arrangements work for the employer and the employee.  It is also beneficial to include ongoing reviews to the arrangement should the situation change in the future.  This gives both sides flexibility if things are not working.

If you decline the request, you must explain why.  The law allows employers to refuse requests for genuine business reasons, including:

• Inability to reorganise work,

• Negative impact on quality or performance,

• Additional cost burden,

• Lack of capacity,

• Health and safety concerns,

• Impact on customer service, or

• Insufficient work during requested hours.  

The key is showing the request was genuinely considered.  Avoid vague responses and, instead give clear business-based reasoning.  Professional, respectful communication matters.

There are some common mistakes employers can make when considering flexible working requests:

Saying Yes Too Quickly

Many employers approve requests informally without considering long-term impacts.  Then problems appear later around performance, fairness, or availability.

Treating Everyone the Same

Flexible work should be considered individually.  Different roles have different operational needs.

Forgetting Health and Safety

Home offices still create employer obligations.  Ignoring this can create risk.

Not Updating Employment Agreements

If working arrangements change permanently, documentation should change too.

Letting Temporary Arrangements Drift

A temporary arrangement can quietly become permanent if not reviewed properly.  Always set review dates and adhere to them.  

If you approve flexible work, set clear expectations early.  Successful arrangements usually include:

• Clear communication rules,

• Regular check-ins,

• Measurable performance expectations,

• Defined availability,

• Team connection, and

• Good systems and processes.  

FAQs

Can an employee demand to work from home?

Employees can request flexible work, but employers do not have to approve it if there are genuine business reasons not to.

Does the request have to be in writing?

It is best practice for both the request and response to be documented in writing.

How long does an employer have to respond?

Employers must respond within one month.

Can flexible work be temporary?

Absolutely.  Many employers use trial periods or temporary arrangements successfully.

Can employers monitor remote workers?

Yes, within reason.  Employers can manage performance, communication, and productivity expectations, provided monitoring is lawful and transparent.

What if working from home stops working?

Employers should review the arrangement and discuss concerns early.  This is why written agreements and review periods are important.

Do employers have to provide equipment?

Not always.  This should be agreed between both parties and documented clearly.

Flexible working can be a great tool for attracting and retaining good staff. It can improve morale, productivity, and work-life balance when managed well.  But flexibility without structure creates problems.  As an employer, your job is to balance legal obligations, business needs, team fairness, and employee wellbeing.  The safest approach is to have a clear process, good documentation, consistent decision-making, and strong communication.  Because when HR processes are simple and structured, your business runs smoother and you can spend less time worrying about employment issues.

If your business needs help creating flexible work policies, employment agreement variations, or handling difficult employee requests, Employer Direct can help you put practical systems in place that protect both your people and your business. 

Contact us today for more information.  Employer-Direct.co.nz | 0800 612 355

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