Victoria is set to become the first jurisdiction in Australia to give workers a legal right to work from home for two days a week, after the Allan Labor Government introduced new legislation to Parliament on 16 June, according to an Instagram post by the Victorian Government.
The proposed law will amend the Equal Opportunity Act 2010 (Vic), giving eligible employees the right to work remotely two days each week if their role can reasonably be performed from home.
If passed, the legislation will take effect from 1 September 2026.
Small businesses with fewer than 15 employees will have until 1 July 2027 to comply, giving them more time to update workplace policies and procedures.
The reforms will apply to full-time, part-time and regular casual employees across Victoria.
Protecting workplace flexibility
Premier Jacinta Allan said the legislation aims to protect arrangements that many workers have come to rely on since the pandemic.
"Work from home works for families, it saves time and money and it gets more parents working. That's why we're protecting work from home in law," Allan said.
Minister for Industrial Relations Jaclyn Symes said, "Enshrining the right in law will mean more workers can benefit from work from home.”
Equal opportunity framework
Unlike existing federal workplace laws, the Victorian proposal places the right to work from home within the state's anti-discrimination framework.
The reform does not create a right to request remote work. Instead, it establishes a legal entitlement for eligible employees.
Workers who believe their rights have been denied will first take their complaints to the Victorian Equal Opportunity and Human Rights Commission for conciliation. If a resolution cannot be reached, the matter can be referred to the Victorian Civil and Administrative Tribunal.
The move means disputes will be handled through Victoria's equal opportunity system rather than the Fair Work Commission.
Economic benefits highlighted
The Victorian Government says the legislation will deliver financial and lifestyle benefits for workers.
According to government estimates, employees who work from home save more than A$5,000 a year through lower commuting and related costs. Workers are also saving more than three hours each week by avoiding travel to and from work.
The government also linked flexible work arrangements to higher workforce participation, particularly among parents and carers.
Victoria's workforce participation rate is now 4.4% higher than before the COVID-19 pandemic, with the government crediting workplace flexibility as one of the contributing factors.
New responsibilities for employers
HR leaders and employers across Victoria are being urged to prepare for the new requirements before they come into force.
Businesses will need to review workplace policies, assess which roles can be performed remotely and ensure they have clear processes for managing requests and disputes.
Because the right sits within the Equal Opportunity Act, employers may face greater scrutiny when refusing remote work arrangements.
HR teams are expected to maintain strong documentation and evidence if they decide a role cannot reasonably be performed from home.
The Victorian Government estimates that up to 1.3 million workers employed by small businesses could be affected by the reform.
Business groups oppose bill
According to various media reports, the legislation has drawn immediate criticism from employers and industry groups.
The Victorian Congress of Employer Associations, representing several major business organisations, called on the government to withdraw the bill, arguing that most Victorian businesses already offer flexible work arrangements.
The group said many employers have adopted hybrid work models and warned that the legislation would add unnecessary regulation and compliance obligations.
The Victorian Chamber of Commerce and Industry, the Business Council of Australia and the Property Council also raised concerns, arguing that a single statewide approach does not reflect the needs of different industries and workplaces.
Employer groups further warned that businesses are already dealing with rising costs, including energy, freight and insurance expenses, and said the additional requirements could place further pressure on employers during a period of weak business confidence and slow productivity growth.