Victoria’s Work from Home Laws: A Game-Changer for Employers

Victoria is set to introduce Australia’s first legislated right to work from home, marking a major shift in how flexible work is regulated and significantly increasing compliance risk for employers.

For many businesses, this represents a move from policy-driven flexibility to legal obligation.

What’s Actually Changing?

From 1 September 2026, eligible Victorian employees will have a legal right to work from home up to two days per week, provided their role can reasonably be performed remotely.

Key features include:

• Applies to all employees whose roles can be done remotely
• Covers both public and private sector employers
• Small businesses are not exempt (but get extra time to comply until July 2027)
• The right will be embedded in the Equal Opportunity Act (Vic), not industrial relations law

This is a significant departure from the current system, where employees only have a right to request flexible work, not an automatic entitlement.

From “Request” to “Right”: Why This Matters

Under the existing framework (via the Fair Work Act), employers can refuse flexible work requests on reasonable business grounds.

The Victorian model goes further.

Instead of:

“You can ask and we may say no”

It becomes:

“You are entitled, unless we can justify why not”

This flips the burden of proof onto employers and introduces new legal exposure.

A New Legal Risk: Discrimination-Based Claims

Because the law will sit within the Equal Opportunity framework, work-from-home decisions may be treated as potential discrimination issues, not just workplace relations matters.

This has major implications:

• Employees may challenge refusals as unfair or inconsistent treatment
• Disputes will likely go through the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) (source: Victorian Equal Opportunity and Human Rights Commission).
• Matters may escalate to VCAT, rather than the Fair Work Commission

In practical terms, this raises the stakes significantly for poor or inconsistent decision-making.

What Employers Can (and Can’t) Do

Importantly, this is not an unlimited right.

Employers can still refuse work-from-home arrangements but only where:

• The role genuinely requires physical presence
• There are clear and defensible operational reasons
• The decision is applied consistently across the workforce

What will no longer be acceptable:

• Blanket “return to office” policies
• Decisions based on preference rather than evidence
• Inconsistent approvals between employees in similar roles

Why This Is Controversial

The legislation has sparked strong debate.

Supporters argue it:

• Improves work-life balance
• Increases workforce participation (especially for parents and carers)
• Reflects modern workplace expectations

Critics warn it:

• Adds regulatory burden, particularly for SMEs
• May reduce operational flexibility
• Creates legal uncertainty and compliance complexity

Regardless of where businesses sit, the direction is clear:
flexible work is becoming a regulated right, not a discretionary benefit.

What Employers Should Do Now

Even though the legislation is still being finalised, organisations should act early.

1. Review Your Flexible Work Policy

Ensure policies move beyond “manager discretion” and include:

• Clear criteria for assessing roles
• Defined approval/refusal processes
• Documentation requirements

2. Audit Roles for Remote Suitability

You will need to justify decisions. That means:

• Identifying which roles can/cannot be performed remotely
• Documenting the reasons behind those decisions

3. Train Managers

Line managers will be on the frontline of compliance.

They must be able to:

• Assess requests objectively
• Communicate decisions clearly
• Avoid inconsistent or biased outcomes

4. Prepare for Disputes

Expect an increase in:

• Internal grievances
• Formal complaints
• Escalation where decisions are poorly handled

The Bigger Shift: Flexibility as a Legal Standard

This reform is part of a broader trend across Australia:

• AI is increasing employee access to claims
• Flexible work is becoming enforceable
• Employer discretion is narrowing

The message for businesses is clear:

Workplace flexibility is no longer just a cultural issue; it’s a compliance obligation.

Conclusion

Victoria’s work-from-home legislation will fundamentally reshape how employers manage flexibility.

For some organisations, this will require only minor adjustments.
For others, it will expose gaps in policy, leadership capability, and decision-making consistency.

Either way, the organisations that succeed will be those that treat flexibility not as a perk, but as a structured, defensible business practice.