Fair Work Commission ruling validates employer's return-to-office mandate despite contract language
A Fair Work Commission ruling on January 19, 2026 has given employers legal backing to enforce return-to-office policies, even when contracts reference working from home.
Richard Johnson thought his employment contract with PaperCut Software protected his right to work remotely. The contract stated he was "permitted to work from their personal residence in item 1 of Schedule 1 in line with relevant PaperCut policy." Johnson signed it in March 2022, started work in April, and worked predominantly from home for three years without issue.
But in August 2023, PaperCut introduced a hybrid workplace policy requiring employees to attend the office three days per week, with a staged transition to full implementation by January 2025. Johnson participated in the consultation process but refused to comply when the policy applied to him.
The dispute centered on those few crucial words in his contract. Johnson argued the phrase "permitted to work" gave him an unconditional right to remote work. He obtained legal advice supporting his interpretation and shared it with PaperCut. His position was clear: the direction to return to the office breached his contract, so he didn't have to follow it.
PaperCut saw it differently. The company argued the permission to work from home was always conditional on company policy, and the contract explicitly stated Johnson "may be required to work at other...
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