informal meeting - Insights - banner - 1900 x 500

Discrimination v Safety: Determining an Employee’s Capacity for Work

Libby Pallot, Anthony Massaro, Ben Tallboys, Abbey Burns and Caitlin Walsh

Our 8 March 2017 seminar raised a number of hot topics about dealing with employee injuries, illnesses and absences that are not work-related. In this Alert we explore one of those topics in more detail.

 
Discrimination v Safety: Determining an Employee’s Capacity for Work

The Fair Work Act 2009 (Cth) (FW Act) allows employees to request flexible work arrangements for a range of reasons, including if they have a disability.  Employers can only refuse a flexible work request on reasonable business grounds.  

However, an employee’s right to request flexible work arrangements is not enforceable under the FW Act.  If an employer refuses a request, an employee cannot challenge that decision unless they have a separate right to the arrangement under a contract or enterprise agreement.

Of course, employers need to remember that under State discrimination laws they may also have an obligation to make reasonable adjustments to accommodate ill and injured employees.  This obligation is separate to an employer’s obligations under workers’ compensation legislation, and applies unless the relevant employee cannot adequately perform the genuine and reasonable requirements of their role even after reasonable adjustments are made.

There are therefore four matters employers must consider when assessing if, and how, they may accommodate an ill or injured employee:

 

  1. Determine the genuine and reasonable requirements of the employee’s role.
  2. Identify the adjustments that are necessary to accommodate the ill or injured employee. 
  3. Determine whether the employee can adequately perform the role with the adjustments.
  4. If the employee would be able to perform the genuine requirements of the role if an adjustment was made, determine whether those adjustments are reasonable.

 

Each of the above steps involve a number of moving parts, and require a thorough analysis of an employee’s position and a clear understanding of the medical evidence about the employee’s condition. It is our experience that employers often find it difficult to make these assessments alone, and they will be criticised for making assumptions or drawing conclusions without a proper foundation.

For this reason, we recommend that employers seek legal advice when making a decision refusing a request for adjustments to an employee’s role, or when considering dismissing an employee due to incapacity. For advice when making these and other decisions, please contact Russell Kennedy’s Workplace Relations, Employment and Safety Team.

If you'd like to keep updated with Russell Kennedy's insights, please sign up here.

View related insights

working from home on a conference call

The Victorian Working From Home Bill has been introduced to Parliament: What employers need to know

2 Jul 2026

On Tuesday 16 June 2026, the Government introduced the long-awaited Equal Opportunity Amendment (Work from Home) Bill 2026 (WFH Bill) to Parliament. It passed its first reading and moved to a second ...

View
Fleet vehicle on the road

New Emergency Powers for Road Industry Contractual Chain Orders: The Potential Effects of MS2026/1

17 Apr 2026

On 10 April 2026, the Minister for Employment and Workplace Relations released the Fair Work (Emergency Application – MS2026/1) Determination 2026, declaring MS2026/1 to be an emergency applicat ...

View
Comparing two documents

A Significant Shift in Enterprise Agreement Approval Practices

31 Mar 2026

Earlier this year, Deputy President Slevin of the Fair Work Commission exercised, for the first time, the Commission’s new power to directly amend enterprise agreement provisions that do not sat ...

View