Victoria is set to become the first jurisdiction in Australia to legislate a right to work from home. This is a significant shift that will have real implications for employers across the State.

Key Takeaways 

• Work from home is expected to become a statutory right in Victoria from 1 September 2026 for employees who can perform their role from home, up to two days per week, subject to the final form of the legislation. This change will commence on 1 July 2027 for small businesses.
• The intention is for the right to be contained in the Equal Opportunity Act 2010 (Vic) rather than industrial relations legislation.
• Workplace disputes about the new right are expected to proceed through VEOHRC conciliation and, if unresolved, through VCAT.

From 1 September 2026, the Victorian Government is proposing that employees in Victoria who can perform their role from home will have a statutory entitlement to do so for up to two days per week (subject to the final form of the legislation). For small businesses (fewer than 15 employees), the changes will apply from 1 July 2027.

While the legislation has not yet been introduced into Parliament, the Victorian Government has confirmed several key features of the proposed reforms.

What's changing? 

The Victorian Government has announced that: 

• Employees who can perform their role from home will have a legal right to do so for up to two days per week.
• The reforms will apply broadly across the Victorian workforce, including:
  • private and public sector employers;
  • organisations with existing hybrid or office-based models; and
  • small businesses.

Importantly, this represents a move away from employer discretion around remote based working.  Currently, employers generally have a right to decide who can and who cannot work remotely, subject to the employee’s ability to make a request under the flexible working arrangements regime.

While the Victorian Government had previously flagged that small businesses may be exempt from the reforms, it has now confirmed that the right to work from home will apply regardless of employer size. A delayed commencement will apply for employers with fewer than 15 employees.

How does this differ from existing flexible work laws?

Under the Fair Work Act 2009 (Cth), employees can request flexible working arrangements, including working from home, if they meet specified eligibility criteria (such as having caring responsibilities, a disability, being aged 55 or over, or experiencing family or domestic violence). Employers may refuse those requests on reasonable business grounds.

The proposed Victorian reforms go further. The right to work from home would not be dependent on an employee establishing a qualifying ground, apart from whether the role itself can be performed from home. 

Where will disputes be heard? 

The Victorian Government has confirmed the new right will be included in the Equal Opportunity Act 2010 (Vic).

Disputes are expected to:

• proceed first to conciliation at the Victorian Equal Opportunity and Human Rights Commission (VEOHRC); and
• if unresolved, be determined by VCAT.

What remains unclear? 

Several critical issues are still to be worked through, including:

• what constitutes work that "can" be performed from home;
• the extent of any exceptions, for example, whether performance, productivity, supervision and workplace, health and safety concerns may be relied upon; and
• the interaction with modern awards, enterprise agreements and contractual terms.

The reforms could face constitutional challenge, given Victoria’s referral of industrial relations powers to the Commonwealth and the potential inconsistency with the Fair Work Act 2009. The Victorian Government’s position is that including the right in the Equal Opportunity Act 2010 (Vic) will minimise the chances of such a challenge being successful.

While the proposed reforms are specific to Victoria, they may have broader implications for national employers seeking to take a consistent approach across their organisation.

What should employers do now? 

While we are still awaiting draft legislation (set to be introduced in July 2026), employers can start preparing by:

• reviewing return to office and hybrid work policies to assess how this legislation might impact them;
• identifying roles that are genuinely capable (or not capable) of being performed remotely; and
• considering how performance management, supervision and OHS/WHS obligations are addressed in a remote setting.

Once the draft legislation has been introduced, we will provide a further update as well as more information on how employers can prepare for the changes.