Banks have been put on notice over employees' work-from-home rights after one wrongly denied the request of a mother seeking to care for her children.

The Fair Work Commission in late October found Westpac acted unlawfully in knocking back the woman's request to work from home, a move the sector's union said highlighted that flexible arrangements were a legal right.

The Finance Sector Union has written to Australia's bank bosses to ask they review their work-from-home policies, reminding them they could be breaking the law by rejecting requests without proper justification.

"Westpac broke the law when it ignored its own worker's rights and we're putting every other bank on notice that they can't do the same," the union's national assistant secretary Nicole McPherson said on Thursday.

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