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

The Victorian Government has introduced legislation that would give eligible employees the legal right to work from home for up to two days per week where their role can reasonably be performed remotely. If passed, Victoria will become the first Australian state to introduce this type of legislation.

As expected, the announcement has generated plenty of discussion among both employers and employees. So, what does it actually mean for Victorian businesses?

The Headlines

Under the proposed changes, employees whose roles can reasonably be performed from home would have a legal right to work remotely for up to two days per week. The legislation is proposed to commence on 1 September 2026, with businesses employing fewer than 15 employees receiving additional time to prepare, with commencement delayed until 1 July 2027.

The proposed laws would apply to:

• Full-time employees

• Part-time employees

• Regular casual employees

Guidance is expected to be released regarding how the entitlement will apply to part-time and casual workers.

Before You Panic...

One of the biggest misconceptions is that every employee will automatically be entitled to work from home.

That is not the case.

The proposed legislation recognises that many roles require employees to be physically present at work. Industries such as hospitality, retail, manufacturing, disability services, healthcare and trades will continue to require many employees to attend their workplace to perform their role effectively.

The key question will be:

Can the role reasonably be performed from home?

What Does This Mean for Employers?

For many businesses, there may be very little practical change.

However, employers should start thinking about:

• Flexible work and work from home policies

• Position descriptions and role requirements

• Manager capability and decision-making

• Technology and equipment requirements

• Processes for responding to work from home requests

Having clear documentation and consistent decision-making processes will be more important than ever.

Disputes and Challenges

The proposed legislation includes a formal dispute resolution pathway. Where disagreements arise, matters may be referred to the Victorian Equal Opportunity and Human Rights Commission and, if unresolved, potentially to VCAT.

This means employers should be prepared to clearly explain and document the reasons behind any decision relating to work from home arrangements.

My Thoughts

As with most employment law changes, the detail matters more than the headline.

This is not about every employee working from home whenever they choose. It is about ensuring employers properly consider working from home arrangements where a role can reasonably be performed remotely.

For business owners, now is a great time to review your current policies, understand the inherent requirements of each role and ensure your managers are equipped to have meaningful conversations about flexible work.

The legislation is still making its way through Parliament, so there may be changes before it becomes law. However, it is certainly a development Victorian employers should keep on their radar.

If you're unsure how these proposed changes may impact your business, HR Collab can help you review your current arrangements and prepare for what's ahead.

💙 Let's build better teams, together.