Business employers have branded a new federal public service work-from-home deal “nauseating”, claiming the public service, unions and the federal government are out of touch with workplace reality.

The comments from the small and medium business employer association, Ai Group, came after employees at the four largest federal agencies – more than half of the 180,000 strong Australian Public Service – voted overwhelmingly to back an 11.2 per cent sector-wide, three-year pay deal that removes all work from home restrictions.