New legislation introduced to Parliament today (16 June) will enshrine remote work entitlements in the state's equal opportunity framework, effective 1 September
Victoria has become the first Australian jurisdiction to give workers a legislated right to work from home, with the Allan Labor Government today introducing a bill that will amend the Equal Opportunity Act 2010 (Vic) to guarantee eligible employees two remote working days per week.
The law is set to come into effect from 1 September 2026, with a delayed commencement of 1 July 2027 for workplaces with fewer than 15 employees, to allow smaller employers more time to update their human resources policies and procedures.
The legislation applies to Victorians whose roles can reasonably be performed from home, and will cover regular casual and part-time workers. Guidance on how pro-rata entitlements will apply is expected ahead of the September commencement date.
The decision to enshrine the right within Victoria's anti-discrimination framework rather than through industrial legislation carries significant implications for how disputes will be resolved. Because the Victorian Government cannot amend Commonwealth legislation, it has instead proposed changes to the Equal Opportunity Act 2010 (Vic), which falls within state jurisdiction. As a result, disputes relating to the right to work from home will be addressed through the Victorian equal opportunity framework rather than by the Fair Work Commission.
Under the new laws, employees who believe their rights have been denied will first go to the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for conciliation. If conciliation fails, the dispute will proceed to the Victorian Civil and Administrative Tribunal (VCAT).
The significance of this reform is not the number of days – it is the enforcement architecture. By using this legislative framework, the Government is positioning working from home as an equal opportunity issue within the state's anti-discrimination regime.
The proposed reforms go further than the existing federal right to request flexible working arrangements under the Fair Work Act 2009 (Cth). Currently, certain eligible employees can request flexible work, including working from home, and employers must follow specific rules when responding. Employers can only refuse a valid request on reasonable business grounds. The Victorian proposal is different – it is framed as a legal right, not merely a right to request.
The case for reform
The government points to substantial economic and workforce benefits to support the legislation. According to a statement from the Victorian Government, working from home saves Victorian workers more than $5,000 a year (roughly $110 per week), largely through reduced commuting costs. Victorians are also saving more than three hours a week on average in commute time.
The release also cited workforce participation figures, noting that participation is now 4.4 per cent higher than before the COVID-19 pandemic, and attributed part of that growth to the flexibility remote work provides to parents and carers.
Premier Jacinta Allan said the laws were designed to protect arrangements that workers had already come to rely on. "Work from home works for families, it saves time and money and it gets more parents working," the Premier said. "That's why we're protecting work from home in law."
Minister for Industrial Relations Jaclyn Symes said the move would extend the benefits more broadly. "Enshrining the right in law will mean more workers can benefit from work from home," the Minister said.
What HR leaders need to prepare for
For businesses operating in Victoria, understanding these obligations is critical. Employers should begin reviewing their policies, role requirements, and decision-making processes now so they are prepared when the laws take effect.
Because the right is now in the Equal Opportunity Act, refusing a work from home request without a solid reason could be treated like discrimination under that framework. That is a materially higher bar than the existing federal "reasonable business grounds" test, and HR teams will need clear documentation trails to support any denials.
The Victorian Government has confirmed the laws will apply regardless of employer size. It estimates the policy will affect up to 1.3 million Victorians employed by small businesses.
Industry groups call for bill's withdrawal
Victoria's employer community has mounted a united front against the legislation on the same day it was introduced. The Victorian Congress of Employer Associations (VCEA), a coalition of the state's leading industry groups, issued a joint statement today calling on the Allan Government to immediately withdraw the bill, warning it will further undermine investment and economic confidence.
The VCEA argued the legislation creates a problem that does not exist, pointing to its own survey data showing that around three-quarters of Victorian businesses already provide flexible work arrangements, with many operating hybrid models that include minimum office attendance requirements. "The system is currently working," the statement said. "Instead of supporting practical conversations between employers and employees, this legislation introduces a new layer of regulation and positions VCAT as the ultimate arbiter of workplace arrangements."
The Victorian Chamber of Commerce and Industry, the Business Council of Australia, and the Property Council have all pushed back against the reforms, arguing the laws represent a one-size-fits-all mandate that does not reflect how businesses actually operate.
The VCEA statement also pointed to the broader economic backdrop, noting that businesses are already absorbing significant cost pressures across freight, energy, and insurance, and warning that the added compliance burden is the wrong priority at the wrong time.
"Victoria is already experiencing sluggish productivity growth and weakening business confidence," the statement read. "The state's economic competitiveness will not improve by adding more regulation or creating additional compliance obligations for employers who are already doing the right thing." The VCEA called on the Government to instead work collaboratively with employer groups on reforms that restore business confidence and strengthen the state's competitiveness.
