The Victorian Government has announced plans to introduce a statutory right for eligible employees to work from home for up to two days each week, signalling one of the most significant workplace reforms since the widespread adoption of hybrid work during the pandemic.
If implemented, the reforms will require many employers to rethink how they organise work, manage employees and respond to requests for remote working.
While the legislation has not yet been introduced into Parliament, the proposed changes provide an opportunity for employers to review their existing workplace arrangements before the new framework takes effect.
Key dates
- Announcement: April 2026
- Bill expected: July 2026
- Proposed commencement: 1 September 2026
- Small business commencement: 1 July 2027
What is being proposed?
The Victorian Government has announced its intention to amend the Equal Opportunity Act 2010 (Vic) to introduce a statutory entitlement allowing employees whose work can reasonably be performed remotely to work from home for up to two days each week.
If enacted, the proposal would apply broadly across both the public and private sectors and would represent a significant departure from the current position under the Fair Work Act 2009 (Cth).
At present, employees may only request flexible working arrangements if they meet prescribed eligibility criteria, such as having caring responsibilities, a disability or experiencing family and domestic violence. Employers may refuse those requests where there are reasonable business grounds.
The proposed Victorian model instead focuses on the nature of the role itself, rather than the personal circumstances of the employee, creating what would be a much broader entitlement to work remotely.
Why does this matter?
Although the legislation is yet to be released, the announcement alone signals a substantial policy shift.
Rather than working from home being primarily a matter of employer discretion or negotiated flexibility, the Government proposes to establish a statutory right that employers will need to actively consider and justify limiting where appropriate.
For many organisations, this is likely to change employee expectations well before the legislation commences.
An unusual legal approach
The proposed reforms are expected to amend the Equal Opportunity Act 2010 (Vic) rather than industrial relations legislation.
This is an interesting legislative choice and appears designed to avoid constitutional issues arising from Victoria’s referral of industrial relations powers to the Commonwealth.
Whether the reforms ultimately withstand legal scrutiny remains to be seen. Questions may arise as to whether a broadly framed right to work from home could be characterised as regulating terms and conditions of employment, potentially creating inconsistency with the federal workplace relations framework.
Regardless of any future legal challenge, employers should expect increased scrutiny of decisions refusing remote work requests and a greater focus on transparent decision-making.
How disputes may be resolved
Based on the Government’s announcement, disputes are expected to follow a different pathway from traditional Fair Work matters.
Complaints would first be conciliated through the Victorian Equal Opportunity and Human Rights Commission before, if necessary, proceeding to determination by the Victorian Civil and Administrative Tribunal.
This would introduce a new dispute resolution framework with different procedural considerations for employers.
Practical implications for employers
Health and safety obligations continue
Working from home does not reduce an employer’s health and safety obligations.
Employers will continue to owe duties under the Occupational Health and Safety Act 2004 (Vic) to ensure, so far as reasonably practicable, that employees working remotely have safe working environments. This includes considering ergonomic risks, psychosocial hazards, fatigue, isolation and appropriate systems of work.
Managing a national workforce
For employers operating across multiple States and Territories, the reforms may create additional complexity.
Questions are likely to arise where employees live in one jurisdiction but perform work in another, or regularly move between locations.
Employers will also need to consider how any Victorian entitlement interacts with enterprise agreements, existing hybrid work policies and nationally consistent workplace practices.
Performance management
A statutory right to work from home would not limit an employer’s ability to manage performance.
However, organisations should ensure that performance expectations are clearly documented, objectively measured and consistently applied regardless of where employees perform their work.
Managers should also receive training to ensure that decisions relating to performance, promotion or disciplinary action cannot be perceived as adverse treatment because an employee has exercised a statutory workplace right.
Increased complaints and compliance risk
A new statutory entitlement is likely to generate additional workplace complaints where employees believe requests have been refused or restricted without adequate justification.
Employers should ensure that any refusal is based on genuine operational reasons, supported by appropriate evidence and documented carefully.
Clear policies, consistent decision-making and well-trained managers will be critical in reducing legal risk.
What should employers be doing now?
Although the final legislation is yet to be released, employers should begin preparing now rather than waiting for the Bill to pass.
This is an ideal opportunity to review:
- flexible work and working-from-home policies;
- workplace health and safety procedures for remote work;
- equal opportunity and anti-discrimination policies;
- performance management frameworks;
- codes of conduct and expectations regarding availability and communication; and
- information security and technology policies.
Employers should also review employment contracts and enterprise agreements to identify any provisions that may need updating if the proposed reforms proceed.
Final thoughts
The proposed Victorian reforms represent another step in the continuing evolution of flexible work.
Whether the legislation ultimately passes in its current form or is amended during the parliamentary process, the direction of travel is clear. Hybrid work is becoming an increasingly important feature of modern employment, and employers should ensure their policies, management practices and workplace culture are equipped to respond.
*This article is intended to provide general information only and should not be relied upon as legal advice. Specific advice should be obtained for individual circumstances.*
