Victoria is set to become the first Australian state to introduce a legislated right to work from home, marking a significant shift in the way employers manage workplace attendance and flexible work arrangements.

The proposed Equal Opportunity Amendment (Work from Home) Bill 2026 (Vic) will give eligible employees a legal entitlement to perform their duties remotely for part of the working week in circumstances where the employee can reasonably fulfil their duties at home.

The details

The legislation will provide employees with the ability to work from home for up to two days each week, provided that the inherent requirements and nature of their role are compatible with home-based work. The entitlement will apply to full-time employees, with proportionate arrangements for eligible part-time and regular casual employees.

This legislation goes considerably further than the current Fair Work Act framework, which provides that only certain categories of employees may request flexible working arrangements. The new Victorian framework removes the need for employees to seek approval to work from home and instead creates a presumptive entitlement to work from home in qualifying circumstances.

Some categories of employees are excluded from being able to work from home, including employees on probation, apprentices and trainees, and casual employees who are not employed on a regular and systematic basis.

Eligible employees who intend to work from home must give written notice to their employer. This written notice must set out the days and any specific times the employee intends to work from home and specify the place the employee intends to work from (if it is a place other than their private residence).

If an employer receives a written work from home notice, it must allow the employee to work from home unless it is not reasonable for the employee to do so. In determining whether it is reasonable for an eligible employee to work from home, there are a limited number of matters that an employer can consider, including the inherent requirements of the role and the impact of the arrangement on the employer. An employer must respond to the work from home notice within 21 days.

Irrespective of whether employers prefer employees to be physically present in the workplace, this alone may not be sufficient grounds for refusing a work from home arrangement. Decisions will need to be supported by legitimate and reasonable business grounds that are consistent with the legislative framework.

It is proposed that the legislation will commence on:

• 1 September 2026 for organisations employing 15 or more employees; and
• 1 July 2027 for employers with fewer than 15 employees.

What employers need to consider

In preparation for the proposed legislation, employers should consider whether existing workplace policies and procedures need to be reassessed. As part of that reassessment, employers should carefully consider:

• whether particular roles can be performed effectively from home;
• how business needs and operational requirements will be assessed;
• the process for responding to work from home notices;
• workplace health and safety obligations for remote workers; and
• the adequacy of existing flexible work and hybrid work policies.

Employers are also responsible for paying “reasonable costs” for eligible employees to work from home. This includes providing essential equipment (such as hardware and software) and secure access to the employer’s systems.

Unlike existing flexible working arrangement disputes, which are typically dealt with through the Fair Work Commission, disputes relating to the new work from home entitlement will be addressed under Victoria’s equal opportunity framework. Employers and employees will first participate in conciliation through the Victorian Equal Opportunity and Human Rights Commission, with unresolved matters potentially progressing to the Victorian Civil and Administrative Tribunal.

Key takeaways for employers

The proposed work from home reforms represent a significant shift in Victoria’s employment landscape and reflect the continuing evolution of flexible working arrangements. Employers should begin reviewing their workforce arrangements, workplace policies and operational requirements now to ensure they are prepared for the proposed changes. Taking proactive steps now will help organisations adapt to the changes, minimise compliance risks and ensure they are well positioned for the commencement of the legislation.