Employee Terminated for Remote Work Despite Contractual Allowance

A recent ruling by the Fair Work Commission has highlighted a case involving a Melbourne employee, Richard Johnson, who was terminated for not adhering to a company’s return-to-office policy. Despite having a contract that initially allowed him to work from home, his dismissal was upheld as lawful and reasonable.

Case Background

Richard Johnson began his employment with PaperCut in April 2022. His contract permitted remote work but required him to comply with company policies, which included possible office attendance. The situation escalated when PaperCut decided to enforce a hybrid workplace model, mandating employees to work in the office for at least three days weekly by January 2025.

Policy Changes and Remote Work

Initially, Johnson’s contract allowed for a hybrid work arrangement. However, in August 2022, PaperCut sought to clarify his work location, stating that he must also report to the office. Johnson contested this change, claiming his employment terms permitted him to work from home.

• February 25, 2022: Victorian government eased work-from-home recommendations.
• August 2023: PaperCut introduced a formal return-to-hybrid work policy.
• December 2024: Johnson was mandated to change his work location from home to the office by January 1, 2025.
• May 20, 2025: Johnson received a final warning regarding non-compliance with office attendance.
• June 19, 2025: Johnson was dismissed for failing to comply with the hybrid work policy.

Fair Work Commission’s Ruling

The commission ruled in favor of PaperCut, emphasizing that Johnson had ample opportunity to understand the new directives. Commissioner Scott Connolly noted that the company’s request for in-office attendance was lawful and within the contract’s scope. This ruling aligns with recent trends as organizations shift back to office work post-pandemic.

Implications for Employees

Experts suggest that employees facing similar challenges should explore requesting flexible work arrangements, provided they meet specific criteria, such as caregiving responsibilities or age limitations. Joellen Riley, a professor emerita at Sydney University, advises that employment contracts often grant employers considerable flexibility, making these cases highly dependent on individual circumstances.

The situation highlights the importance of clear communication and understanding of employment contracts in the evolving landscape of work arrangements, particularly as organizations transition back to in-office policies.