New WFH laws in Victoria and the changes ahead for employers

The Victorian government has announced plans to introduce legislation that would give private and public sector employees a legal right to work from home at least two days per week.

According to Premier Jacinta Allan, the proposed reforms aim to protect flexible working arrangements. The government has described the proposal as a “world-first” legislative right to work from home.

For employers in Victoria, the reforms could significantly change how requests for remote work are assessed and managed.

When the laws are expected to start

The Victorian government has indicated the following timeline:

  • July 2026 – Legislation expected to be introduced to Parliament
  • 1 September 2026 – Laws expected to commence for employers with 15 or more employees
  • 1 July 2027 – Laws expected to commence for small businesses with fewer than 15 employees

The later start date for smaller employers is intended to give those businesses additional time to prepare.

A statutory right to work from home

Under the proposal, employees whose roles can reasonably be performed from home would have the right to do so for at least two days each week.

The Fair Work Act 2009 (Cth) currently allows employees to request flexible working arrangements though it does not create a right to such arrangements. Employers may refuse these requests on reasonable business grounds.

As the proposed legislation has not yet been released, it remains unclear how the requirement that work be reasonably capable of being performed from home will be interpreted or what circumstances it will ultimately cover. Questions also remain regarding validity and enforceability of the proposed provisions.

The right will be enshrined into the Equal Opportunity Act 2010 (Vic). This means the issue will sit within Victoria’s anti-discrimination framework rather than being governed solely by workplace policies.

Although the full details of the legislation have not yet been released, employers are still expected to be able to refuse requests in certain circumstances. For example, this may be possible where there are genuine operational reasons why the role cannot be performed remotely.

How disputes may be resolved

The proposal also includes a formal dispute resolution pathway for disagreements about working from home.

Under the current proposal:

  • Disputes would first go to the Victorian Equal Opportunity and Human Rights Commission for conciliation.
  • If conciliation does not resolve the issue, the matter may proceed to determination before the Victorian Civil and Administrative Tribunal.

This means disputes about working from home could ultimately lead to formal legal proceedings, making it important for employers to carefully consider and document  decisions.

What this means for employers outside Victoria

Although the legislation will apply only in Victoria, employers in other Australian states should still monitor these developments closely.

Victoria has historically been a policy leader in employment related reforms, and workplace laws introduced in one jurisdiction can sometimes influence broader regulatory trends across Australia.

Employers that operate nationally, particularly those with staff in multiple states, may wish to consider consistent flexible work frameworks that could accommodate potential future reforms.

Even if other states do not adopt the same laws immediately, employee expectations around hybrid work continue to evolve. Businesses may face increasing pressure to offer clear and structured flexible work arrangements.

Preparing for the changes

Although the legislation has not yet passed Parliament, employers should begin thinking about how a statutory right to work from home could affect their operations.

Practical steps may include:

  • Reviewing existing flexible work or hybrid work policies
  • Assessing which roles can reasonably be performed remotely
  • Developing clear criteria for assessing WFH requests
  • Training managers to respond to requests consistently and lawfully
  • Documenting operational reasons where requests cannot be accommodated

Key takeaway

If enacted, the proposed reforms will represent a significant shift in workplace regulation in Victoria, creating a legally enforceable right for employees to work from home in certain circumstances.

Businesses should begin reviewing their policies and workplace practices now to ensure they are prepared for the changes and to monitor whether similar reforms may emerge in other jurisdictions across Australia.

If you would like to discuss this or other workplace issues, please contact Andrew Bland or call 02 9412 3077.

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