Victoria's Proposed Work From Home Laws: What Employers Need to Know

"The biggest challenge for many employers won't be deciding whether employees can work from home. It will be explaining the reasons behind those decisions."

Background

The Victorian Government has introduced the Equal Opportunity Amendment (Work From Home) Bill 2026, proposing a new legal framework for employees to work from home.

If passed in its current form, the legislation is expected to commence on 1 September 2026 for employers with 15 or more employees, with businesses employing fewer than 15 employees having until 1 July 2027 to comply. At the time of writing, the Bill is still before Parliament and may be amended before becoming law.

While there has been considerable debate about the proposed reforms, employers should be thinking now about what the legislation could mean for their workplace if the proposed commencement dates remain unchanged.

What is being proposed?

The Bill would introduce a statutory right for eligible employees to work from home for up to two days each week where their role can reasonably be performed remotely.

Some of the key features of the proposed legislation include:

• Eligible employees whose role can reasonably be performed remotely may work from home for up to two days per week.

• The legislation is proposed to apply to full-time, part-time and regular casual employees, with guidance to be released on how pro-rata arrangements will operate.

• Employees must provide written notice of their proposed work from home arrangement.

• Employers will have 21 days to respond in writing.

• Where an employer refuses a request or proposes alternative arrangements, they must provide reasons.

Does this mean employees can simply decide to work from home?

No. The proposed legislation does not create an unrestricted entitlement for every employee to work from home.

The starting point remains whether the role can reasonably be performed remotely. Some positions clearly require employees to be physically present, while others may involve a combination of duties that can be performed both on-site and remotely.

The legislation also recognises that there will be circumstances where working from home is not reasonable. Employers will still be able to refuse requests in certain situations, however those decisions will need to be supported by the criteria set out in the legislation rather than simply relying on workplace preference or historical practice.

More information (including circumstances employers can rely on to dispute a WFH request) can be found here: https://www.vgso.vic.gov.au/proposed-new-victorian-work-home-wfh-laws

Why employers should start preparing now

One of the concerns raised by employer groups is the relatively short timeframe between Parliament considering the Bill and the proposed commencement date of 1 September. If the legislation passes close to that date, many organisations will have limited time to review policies, assess roles, train managers and communicate any changes to employees.

In my view, there is little downside to starting that work now.

Regardless of whether the legislation is amended before it passes, reviewing your approach to flexible work is unlikely to be wasted effort. Most organisations already have some form of hybrid or flexible work arrangement in place. For some, those arrangements are supported by well-developed policies and consistent decision-making. For others, they have evolved over time through individual manager discretion or informal agreements.

This legislation provides a good opportunity to step back and review whether your current approach is clear, consistent and aligned with the operational requirements of your business.

What should employers be considering?

Rather than waiting until the legislation is passed, I'd encourage employers to start asking some practical questions now.

• Which roles can reasonably be performed remotely?

• Which roles genuinely require employees to be in the workplace, and why?

• Do your position descriptions accurately reflect the inherent requirements of each role?

• Are your Flexible Work or Work From Home Policies up to date?

• Would different managers make consistent decisions if they received similar requests?

• Are managers equipped to explain and document the reasons behind their decisions?

These are all worthwhile conversations to have regardless of whether the legislation changes before commencement.

Final thoughts

The proposed Work From Home legislation is still making its way through Parliament, so there may yet be amendments before it becomes law.

However, employers who wait until the legislation is passed may find themselves working to very tight timeframes.

Whether the Bill ultimately passes in its current form or with amendments, reviewing your approach to flexible work, updating policies and ensuring managers are making consistent, well-reasoned decisions are all worthwhile exercises.

Need further support?

If your business needs support implementing these changes or you have questions, please reach out to discuss at [email protected].