When can an employer say no to full-time remote work?

Published 4 Jul 2025 | 2 min read

Flexible work has become a normal part of operations. But how far should that flexibility stretch?

When an employee quietly relocates two and a half hours away, expecting to keep the same job under the same conditions, employers are left with tough questions.

The balance between accommodating remote work and maintaining team effectiveness is becoming a growing challenge.

An NZ digital agency, recently faced this very dilemma. One of their developers, had been working mostly remotely as part of a flexible arrangement during the Covid period.

After unexpectedly purchasing a home 200km from the office, he asked to work remotely full-time. But when the employer declined to support ongoing full-time remote work, the disagreement spiralled into a personal grievance claim for constructive dismissal.

The case turned on communication and expectation.

The Employment Relations Authority found the employer had been clear from the outset: staff were expected to be in the office at least three days per week. While temporary exceptions had been made during the pandemic, they were never intended to become permanent.

The employee believed his arrangement had morphed into a right but the Authority ruled otherwise, backing the employer's position that the remote setup was limited and client-specific.

This case offers several insights for New Zealand employers.

First, even in a flexible work environment, it’s essential to document any changes to work arrangements. Second, where exceptions are made, clarify if they’re temporary, project-based, or role-specific.

Most importantly, businesses are not required to agree to remote work simply because it once occurred under exceptional circumstances. Employment expectations still rely heavily on mutual agreement and operational needs, not just personal convenience.

For employers across Aotearoa, this is a clear reminder: flexibility doesn’t mean uncertainty. To avoid misunderstandings, set consistent expectations around remote work and revisit those expectations as circumstances shift.

If your team is remote-friendly, that's great but make sure that friendliness doesn't lead to confusion or legal disputes down the line.

Use Employment New Zealand’s official resources to ensure your processes are fully up to date.

Or speak to our friendly consulting team if you have an HR related question.