The Victorian Government has announced it will introduce “world-first” legislation giving Victorian workers a legal right to work from home two days per week. The right will be enshrined in the Equal Opportunity Act 2010 (Vic) — not industrial relations legislation — meaning refusals may be treated as discrimination-style issues.

This is relevant if your business is based in states other than Victoria as these laws will apply to any employees you have working in Victoria.

What We Know So Far

Entitlement: A legal right (not merely a right to request) to work from home two days each week for employees whose roles can reasonably be performed remotely.

Coverage: All Victorian employers with employees in Victoria, regardless of size. Small businesses are not exempt.

Commencement: 1 September 2026 (businesses with 15+ employees); 1 July 2027 (businesses with fewer than 15 employees).

Disputes: Disputes will be conciliated in the first instance by the Victorian Equal Opportunity and Human Rights Commission, then escalated to the Victorian Civil and Administrative Tribunal if unresolved. Disputes will not go to the Fair Work Commission.

Scope: Applies only to roles that can “reasonably” be performed remotely. Roles requiring physical attendance or on-site equipment are expected to be excluded. Employees on probation may also be excluded, though this is unconfirmed.

Why This Matters

This goes well beyond the existing right to request flexible work under the Fair Work Act 2009 (Cth) (FW Act). As the right sits in anti-discrimination legislation, employers who refuse without clear, documented operational reasons risk being the subject of discrimination-style claims and legal proceedings.

There are also open constitutional questions — the legislation may face challenge on the basis that it is, in substance, regulating terms and conditions of employment in a way that is inconsistent with the FW Act. However, the Victorian Government maintains it has received legal advice that the proposal is constitutionally valid.

Implications for Employers based in states other than Victoria

If your business has any employees based in or performing work in Victoria, you will likely be subject to these obligations. Multi-state employers will need to consider how these rights interact with existing enterprise agreements, contracts and national policies. You should also consider whether to adopt a consistent national approach or maintain jurisdiction-specific policies. These reforms may also signal the direction of future regulation nationally.

Recommended Actions

We recommend that affected employers begin preparing now by reviewing existing WFH and flexible work policies, identifying which Victorian roles can reasonably be performed remotely and documenting operational reasons for any limitations, training managers on how to assess requests and document decisions, addressing WHS obligations for home-based workers and developing clear internal dispute resolution procedures.

Blanket “return to office” mandates that do not consider whether roles can be performed remotely are unlikely to be sustainable under this framework.

Next Steps

The Bill has not yet been introduced and the final terms may differ from the Government’s announcements. We will provide a further update once the Bill is tabled in July. In the meantime, we encourage our readers to begin preparatory work now — the proposed 1 September 2026 commencement date is fast approaching.

Please contact us if you would like assistance reviewing your workplace policies or preparing for these changes.

How we can help

If you wish to discuss any aspect of this newsflash or require specialist advice or assistance in relation to an employment law issue, please do not hesitate to contact us.

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This article is for general information purposes only and does not constitute legal or professional advice.  It should not be used as a substitute for legal advice relating to your particular circumstances.  Please also note that the law may have changed since the date of this article.