The public sector union says mediation has failed to resolve its conflict with the government over working from home.
The union headed into mediation with the government on Tuesday to try to stop restrictions to flexible work practices.
At the end of last year guidelines were sent out to public sector chief executives to tighten up on flexible working arrangements.
The government said working from home arrangements should only be by agreement, should not compromise performance, and departments and agencies must regularly report on the number and nature of agreements in place.
In December the PSA filed action against the move with the Employment Relations Authority (ERA).
PSA national secretary Fleur Fitzsimons told Morning Report she wanted the government to step away from the idea, similar to Australian opposition leader Peter Dutton did during this year's Australian election, to say "we got this wrong, we are sorry".
But Fitzsimons said after mediation failed the case was now heading to the ERA for resolution.
She said the union was dismayed to have not settled the matter quickly for public sector workers.
Fitzsimons said not being able to work from home disadvantaged women who make up 62 percent of the public service workforce.
She said flexible working conditions helped women access career opportunities, while maintaining family commitments as well.
"It's good for employers, people are more productive, they concentrate better, so it is common sense as well."
Public Service Commission deputy chief executive workforce Alex Chadwick said the new guidance on 12 December did not change the fact that public service could work from home.
"The changes to the guidance make it clear that working from home is not an entitlement and all flexible work arrangements must be agreed and managed to support a high-performance culture.
"In short, there is now more oversight of working from home arrangements.
"But working from home remains one of a number of flexible working options for public servants."
