Victoria is on track to become the first Australian state to introduce a legislated right to work from home, a move that signals a major shift in how workplaces will operate. While the legislation is not yet final, the direction is clear: flexible work is moving from a discretionary benefit to a legal entitlement. For business owners, this is a change worth preparing for now.
What’s being proposed?
The Victorian Government has indicated that, from 1 September 2026, eligible employees will have the right to work from home for up to two days per week, provided their role can be performed remotely. For small businesses (fewer than 15 employees), the proposed start date is 1 July 2027.
Unlike current arrangements, this right is expected to apply broadly across the workforce, including
- Private and public sector organisations
- Businesses with existing office-based or hybrid models
- Small businesses (with a delayed start date)
A shift away from employer discretion
At present, working from home is typically managed at the employer’s discretion, with employees able to request flexibility under the Fair Work Act 2009. Under that framework, employers can refuse requests on reasonable business grounds.
The proposed Victorian reforms go further. They introduce a default right to work from home, removing the need for employees to justify their request based on personal circumstances. Instead, the key test becomes whether the job itself can be done remotely. This represents a fundamental shift in workplace power dynamics.
Where will this sit legally?
Rather than being placed within industrial relations legislation, the new right is expected to be included in the Equal Opportunity Act 2010. This means disputes will likely follow a different pathway.
1. Initial conciliation through the Victorian Equal Opportunity and Human Rights Commission
2. Escalation, if needed, to the Victorian Civil and Administrative Tribunal
For employers, this introduces a new legal lens, framing remote work as an equality and access issue, not just a workplace policy matter.
What’s still unclear?
Several important details are yet to be confirmed, including
- How to determine whether a role “can” be performed from home
- What exceptions will apply (e.g. performance, supervision, or safety concerns)
- How the new laws will interact with awards, enterprise agreements, and employment contracts
There is also the possibility of legal challenges, particularly given the overlap with federal workplace laws.
What this means for the future of work
Even though these reforms apply specifically to Victoria, their impact is likely to extend far beyond the state. For national employers, maintaining different policies across jurisdictions may become impractical, meaning this could effectively set a new benchmark across Australia. More broadly, this change reinforces a long-term trend; flexible work is becoming embedded in workplace expectations, not treated as an exception.
How employers should prepare now
With draft legislation expected in July 2026, businesses have a window to get ahead. Key steps include
1. Review your current policies Assess return to office and hybrid work arrangements to identify gaps or risks.
2. Map role suitability Determine which roles can realistically be performed remotely and document your reasoning.
3. Strengthen management frameworks Ensure performance management, supervision, and communication systems work effectively in remote settings.
4. Address health and safety obligations Review how workplace health and safety responsibilities will be managed outside the traditional office.
A critical call to action for WA and interstate businesses
If your business is based in Western Australia or another state but employs staff who live or work in Victoria, these changes are still highly relevant. Employment obligations are often influenced by where the employee is physically working, not just where the business is headquartered. This means Victorian based employees in your workforce may be entitled to these new rights once the legislation takes effect.
Now is the time to
- Identify any employees working remotely from Victoria
- Review employment contracts and policies for cross-jurisdiction consistency
- Consider whether a national approach to flexible work is more practical than state-by-state policies
This proposed legislation is more than a policy update; it’s a structural shift in how work is defined and managed. Businesses that prepare early will be better positioned to adapt smoothly, maintain compliance, and remain competitive in attracting and retaining talent.
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