The Fair Work Commission (FWC) continues to reshape the modern award landscape, with a number of significant developments announced in recent weeks and months. From a new working from home provision in the Clerks Award to temporary increases in vehicle allowances for SCHADS and Aged Care employees, employers should review their payroll practices, policies and award compliance processes to ensure they remain up to date.
In a major development, the FWC has decided to introduce a dedicated working from home (WFH) provision into the Clerks – Private Sector Award 2020 (Clerks Award). The decision follows a review commenced by the FWC in 2024 as part of the Modern Awards Review process. A draft determination has now been issued for consultation, with submissions due by 17 September 2026.
While the final wording has not yet been settled, the decision reflects the FWC’s recognition that modern awards need to better accommodate contemporary hybrid and remote working arrangements. Employers covered by the Clerks Award should monitor the final determination closely and consider whether existing:
will need to be updated once the new provision takes effect.
Importantly, the decision does not create an unrestricted right for employees to work from home. Rather, it establishes an award framework governing how WFH arrangements operate under the Clerks Award.
The FWC has also delivered a significant decision concerning award vehicle allowances.
Following applications by a number of unions, the FWC has temporarily increased the vehicle-related allowance in the:
The allowance will increase from $1.01 per kilometre to $1.05 per kilometre from the first full pay period on or after 1 September 2026 and will remain in place until 28 February 2027.
The FWC accepted that exceptional fuel price volatility arising from global events had substantially increased operating costs for employees who are required to use their own vehicles in the performance of their duties. However, the FWC declined similar applications affecting a further 39 modern awards.
Employers in the aged care, home care and disability sectors should ensure payroll systems are updated to apply the revised allowance from September.
There have been number of other major award changes that employers should be aware of, including:
These amendments may have sector-specific implications and employers should review any award changes applicable to their workforce.
With award modernisation continuing at pace, employers should consider:
The volume and complexity of award changes continues to increase. HR Legal is assisting employers across Australia to review award coverage, update employment contracts and policies, audit payroll compliance, and prepare for emerging developments such as the new Clerks Award WFH provisions.
If you would like assistance assessing how recent award changes affect your organisation, please contact a member of the HR Legal team.
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This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.
This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.
