National Australia Bank (NAB) has reached a deal that grants its employees the right to work from home.

According to the Finance Sector Union (FSU), the new agreement not only ensures pay rises for 80 per cent of NAB's 32,000 staff but also secures legal protection for remote work arrangements, setting a new benchmark for the country and putting pressure on other major Australian banks to follow suit.

While the deal does not explicitly state whether employees can work from home full-time, it introduces measures that limit the grounds for the employer to refuse such requests. 

This move comes at a crucial juncture as private sector companies worldwide attempt to transition away from remote work arrangements initiated during the COVID-19 pandemic.

In contrast to NAB's progressive stance, some of Australia's leading companies, including its main competitor, Commonwealth Bank of Australia (CBA), have imposed minimum office attendance requirements. 

However, this approach seems out of touch with the current reality, as office vacancies in the country's capital cities remain at approximately one-sixth, significantly higher than pre-pandemic levels.

The FSU hailed the NAB agreement as a significant victory for bank workers, with expectations that it will catalyse similar changes in other large Australian banks. 

The union's move comes in the wake of a recent complaint to the Fair Work Commission against CBA, which instructed its employees to return to the office at least 50 per cent of the time. 

The FSU argued that this directive would burden staff with increased commuting costs, childcare expenses, and lengthy travel times.