Work-from-home policies for Australian SMEs: A practical guide

The way we work has changed dramatically. For many Australian SMEs, remote or hybrid work is no longer a perk — it’s an expectation. A clear work-from-home (WFH) policy isn’t just a nice-to-have; it’s essential for keeping your team productive, compliant, and happy.

In this guide, we explain why WFH policies matter, what they should include, and how your small or medium business can implement them effectively with the help of HR software.

Why Australian SMEs need a work-from-home policy

Even if your business has never allowed remote work before, there are compelling reasons to consider a WFH policy: 

• Attract and retain talent: Flexibility is increasingly important for employees. Offering remote options can help you compete for skilled staff. 

• Boost productivity: Studies show employees often work more efficiently at home when expectations are clear. 

• Support business continuity: A WFH policy ensures your business can operate smoothly during disruptions such as extreme weather, public health concerns, or transport strikes. 

• Stay compliant: Australian employers have legal obligations around occupational health and safety (OHS), employee rights, and privacy — even for remote workers. 

Key benefits for SMEs

A well-crafted WFH policy can deliver real advantages: 

1. Flexibility: Employees can better balance work and life commitments. 

2. Reduced overheads: Less need for office space and on-site resources. 

3. Employee retention: Flexible work arrangements improve job satisfaction and loyalty. 

4. Access to a wider talent pool: Location is less of a barrier, enabling you to hire the best candidates. 

Potential challenges & risks 

While there are many benefits, WFH policies must address key challenges: 

• Data security: Company information must remain protected outside the office. 

• Workplace health & safety: Employers are still responsible for OHS in a home environment. 

• Communication & collaboration: Remote teams need clear guidelines for meetings, reporting, and availability. 

• Performance management: Monitoring productivity without micromanaging requires clear goals and accountability. 

What a WFH policy should include 

A comprehensive WFH policy gives employees clarity while protecting your business. Here’s what SMEs should cover: 

1. Eligibility: Specify which roles can work remotely and under what circumstances. 

2. Work hours & availability: Set expectations for core hours, breaks, and responsiveness. 

3. Equipment & technology: Outline what the company will provide (laptops, software, VPN) and employee responsibilities. 

4. Data security & privacy: Include rules for secure networks, password protection, and confidential information. 

5. Health & safety: Guide employees on setting up ergonomic home workspaces and reporting incidents. 

6. Communication & reporting: Define channels for team communication, check-ins, and meeting expectations. 

7. Performance management: Establish clear deliverables, deadlines, and accountability measures. 

8. Hybrid or flexible options: Clarify how remote and in-office arrangements work together. 

9. Policy review & updates: Ensure the policy is reviewed regularly to reflect legal and operational changes. 

Steps to Implement a WFH Policy

1. Consult your team: Ask employees about their needs and potential challenges. 

2. Draft your policy: Include clear language and practical guidance. 

3. Train managers & staff: Ensure everyone understands expectations and procedures. 

4. Provide technology & support: Make remote work feasible with the right tools. 

5. Monitor & review: Collect feedback and adjust your policy as needed. 

Quick Checklist for SMEs

• Define which roles are eligible for WFH 

• Outline work hours and availability requirements 

• Specify equipment & technology responsibilities 

• Include OHS & ergonomic guidance 

• Set clear communication protocols 

• Establish performance monitoring measures 

• Review policy regularly for compliance & effectiveness 

How BrightHR can help

BrightHR offers SMEs a full range of HR solutions designed for modern workplaces. Our platform includes: 

• Customisable policy templates, including WFH policies 

• 24/7 HR advice and support for compliance with Australian laws 

• Tools for tracking employee attendance, performance, and communication 

With BrightHR, creating and managing a WFH policy is simple, practical, and tailored for small and medium businesses.

Book a free product demo or call 1 300 029 198 today.