Australian firm Clayton Utz told lawyers and staff they could return to work at the firm's Sydney office on Friday afternoon after the wife of an employee tested negative to the coronavirus.

On Thursday, the firm sent all employees in Sydney home after the grandmother of an employee's wife was found to have contracted COVID-19, sparking fears that the wife and the employee may also have contracted the virus.

However, in an email to staff on Friday, Clayton Utz managing partner Rob Cutler stated: "I'm pleased to report that our employee's wife has returned a negative result to COVID-19. This means our employee will not need to be tested for the virus (although it's likely he will as a further precaution in any case)."