Australia’s leading banks are under pressure to reevaluate their stances on remote work refusals, following a significant ruling that could open the floodgates to numerous legal challenges.

The Finance Sector Union (FSU) announced it has reached out to high-level banking executives, urging a review of their flexible work arrangements in light of a pivotal decision against Westpac.

This landmark ruling determined that Westpac acted unlawfully by denying an employee’s request to work remotely.

In correspondence, the FSU cautioned that companies might be infringing on workplace laws if they dismiss flexible working requests without adequate consideration, discussion, or valid reasoning.

The Fair Work Commission concluded that Karlene Chandler was entitled to work entirely from home due to Westpac’s failure to fulfill its responsibilities under the Fair Work Act.

She sought to work remotely from her home south of Sydney to enable her to carry out school drop-offs and pick-ups for her two young children.

The bank’s failures included not responding within 21 days, not engaging genuinely with Chandler’s request and not providing her specific reasons for refusing it, the commission found.

The FSU says the ruling sets a precedent that will have far-reaching consequences across the finance sector.

It claims many employers have sought to impose blanket return-to-office mandates without consideration for workers’ personal circumstances.

The FSU has identified other examples of work-from-home arrangement by finance workers that have been rejected by managers.

“Our members have proven they can deliver from home,” said National Assistant Secretary Nicole McPherson.

“Flexibility is not a perk, it’s a legal right and we’ll keep fighting to make sure every worker in finance can exercise it.”

Westpac has been contacted for comment by 9news.com.au.

Australian Bankers Association Simon Birmingham said working from home arrangements were best left to individual banks and their staff.

“Australian banks employ around 180,000 people in a wide variety of roles.

“Work from home has become a valued part of employment arrangements for banks and many of their employees but isn’t possible in all circumstances all of the time.

“Flexible workplace arrangements are ideally matters for individual banks and their employees, who are best placed to together achieve outcomes that deliver the best for all parties.”