WFH in Victoria: What’s Proposed to Change from 1 September 2026
From 1 September 2026, a new right to work from home is set to be introduced in Victoria, with the State Government planning to enshrine the right in the Equal Opportunity Act 2010 (Vic) (EO Act). Pitched as a world-first reform, the laws are designed to protect flexibility for employees while providing a clear pathway for businesses and dispute resolution.
Why It Matters
In essence, if it is passed, eligible Victorian employees who can perform their role from home will have a legal right to do so two days per week. This will apply regardless of workplace size - although businesses with fewer than 15 employees will have a delayed commencement until 1 July 2027 to allow more time to update HR policies and procedures.
For employers with employees in Victoria, this means flexibility will likely no longer just be a workplace policy preference - it is becoming an assumed right.
What We Know So Far
The draft legislation has not yet been released and it is due to be introduced as a Bill to Parliament in July 2026, with the key features expected to include:
a right to work from home two days per week for employees whose roles can reasonably be performed remotely;
the right being enshrined in the EO Act, alongside other protected attributes and rights; and
a tiered commencement date (1 September 2026 for most employers, 1 July 2027 for those with fewer than 15 employees).
Are There Exceptions?
We are yet to see the full detail, but it will likely include an ability for employers to not provide the two day entitlement if it has reasonable business grounds. For example, if it would be unreasonable to allow the employee to work from home.
If we were to look at the factors the Fair Work Commission consider under the current flexible work arrangement framework, and assume they will be copied under the EO Act, this will include aspects such as:
the requested arrangements are too costly;
other employees’ working arrangements can’t be changed to accommodate the request;
it would be impractical to change other employees’ working arrangements or hire new employees to accommodate the request; and
the request
is likely to result in significant loss in efficiency or productivity; or
would have a significant negative impact on customer service
We will know more in July 2026 on whether other factors are considered here.
What Happens if a Business is Based in Another State (i.e. Queensland, NSW etc.) But Has Some Employees in Victoria?
The entitlement will likely be based on the physical location of the employee, and not where the business is officially based.
How Will Disputes Be Resolved?
If a dispute arises - for example, where an employee’s work from home entitlement is refused - the matter will likely first go to the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for a conciliation.
Where conciliation fails, the dispute can be escalated to the Victoria Civil and Administrative Tribunal (VCAT) for determination. This sets up a familiar enforcement pathway for employers already used to discrimination-style complaints under the EO Act.
I Thought The States Gave Up Constitutional Powers To The Commonwealth?
That is correct, and it is why the State Government has likely tried to include it in the EO Act (which it can legislate) and not the Fair Work Act 2009 (Cth) (which it can’t legislate).
There is the chance of a constitutional challenge, however those likely take a long time and hence we recommend proceeding at this stage on the assumption that it will pass (and be upheld).
What Should Businesses With Victorian Employees Do Now?
It is definitely not too early to start thinking about the changes - but we are still a little in the dark until the draft legislation is released and we can see how the State Government proposes to navigate the detail.
Our recommendation is to hold off on preparing or reviewing a Flexible Work Policy or WFH Policy until the legislation actually drops (likely July 2026).
In the meantime however, it would be useful to:
start discussions with managers on which Victoria roles are mandatory 5 days in the office, and why - for example, what inherent requirements of the role cannot be performed at home, and what additional costs would be incurred by the business if they were;
if any roles do require 4 or 5 days in the office, consider reflecting this in the relevant position descriptions for new employees or when offering promotions to existing employees, and in your job advertisements (NB: This will help put your case forward later); and
ensure your employment contract precedent specifically sets out that the role is performed at your workplace (i.e. it doesn’t refer to hybrid or solely remote arrangements unless you are very happy to lock the business in).
All of the above can wait until after the legislation is released, but if you and your team have capacity, starting early on these aspects will reduce the pressure later.
What if My Bussiness Has No Employees in Victoria?
These proposed changes won’t directly apply.
Employees nationally already have a right to request flexible working arrangements under the Fair Work Act 2009 (Cth) in certain circumstances, and refusing such requests requires reasonable business grounds and a proper procedural response - so if you don’t have Victorian employees - we still recommend you have a good flexible work arrangements policy. We also recommend keeping an eye on your own State or Territory as they may copy Victoria in the year ahead.
Need Help?
Our Employment + Workplace Relations team can provide you with practical guidance on how to navigate these and other looming changes to ensure you meet your obligations under the new laws - including reviewing position descriptions, job advertisements and employment contract precedents now, and preparing tailored Flexible Work or WFH Policies once the legislation is released.
Please reach out to the team via [email protected]