Victoria is on the verge of introducing one of Australia’s most significant workplace reforms in years, with the state government seeking to make working from home a legal right for eligible employees. If approved by parliament, the proposal would allow workers whose jobs can reasonably be performed remotely to work from home for up to two days each week.
The legislation, introduced by Premier Jacinta Allan, goes further than many existing flexible work policies by extending coverage to regular casual and part-time employees through a pro-rata entitlement system. The move is being closely watched across Australia because it could become a model for future workplace reforms in other states.
Under the proposal, the new rights would take effect on September 1, 2026. Small businesses employing fewer than 15 workers would have additional time to prepare, with compliance requirements beginning on July 1, 2027.
How Victoria’s work-from-home proposal would operate
The proposed legislation is not designed to give every employee an automatic right to work remotely. Instead, eligibility would depend on whether the role can reasonably be carried out away from the workplace without affecting essential business operations.
For many office-based, administrative and professional roles, remote work is already a routine part of daily operations. However, industries that rely on physical attendance, customer-facing services or specialised equipment may face different considerations when assessing eligibility.
A notable feature of the proposal is the inclusion of regular casual and part-time employees. Workplace reforms often focus on permanent full-time staff, but Victoria’s approach seeks to extend access to flexible work arrangements across a broader segment of the workforce.
The government has indicated that detailed guidance on how pro-rata entitlements will work will be released before the legislation comes into force.
Why the Victorian government is pursuing the change
The government argues that flexible work arrangements have become a permanent feature of modern employment rather than a temporary response to the pandemic. Officials believe stronger protections could help workers balance family responsibilities, reduce commuting burdens and improve workforce participation.
According to government estimates, workers who fully utilise the proposed two-day work-from-home entitlement could save more than A$5,000 annually through reduced transport, fuel, parking and daily work-related expenses.
The proposal also reflects existing workplace trends. The Victorian government says more than one-third of workers already work from home regularly, while approximately 60% of professionals continue to use hybrid working arrangements.
Supporters argue that creating legal certainty around flexible work could make it easier for employees to plan childcare, reduce commuting time and remain in the workforce during different stages of life.
What happens if employers and workers disagree?
One of the most important aspects of the legislation is the creation of a formal dispute resolution pathway.
The right would be embedded within Victoria’s Equal Opportunity Act, allowing disagreements over work-from-home requests to be reviewed through an established legal framework.
If disputes arise, the first step would involve conciliation through the Victorian Equal Opportunity and Human Rights Commission. If a resolution cannot be reached, the matter could then proceed to the Victorian Civil and Administrative Tribunal (VCAT).
For employers, this means decisions regarding remote work requests may require clearer documentation and justification. For employees, it provides a structured avenue to challenge decisions they believe are unreasonable.
Business groups warn of unintended consequences
While the proposal has attracted support from advocates of flexible work, business organisations remain concerned about its potential impact.
The Victorian Chamber of Commerce and Industry has called for a full Legislative Impact Assessment before the reforms proceed. The organisation wants further analysis of compliance costs, productivity outcomes, workforce implications and potential effects on small businesses.
Employer groups argue that many businesses already offer flexible arrangements where practical and believe workplace flexibility is often best managed through direct discussions between employers and staff rather than legislation.
The debate comes as companies continue adapting to changing workplace expectations and economic pressures, including recent workforce reductions at major technology companies as businesses review costs, productivity and long-term operating models.
What happens next?
The bill must still pass through the Victorian Parliament before becoming law. The Coalition has not yet announced whether it will support the legislation, making parliamentary negotiations an important part of the process.
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If approved, Victoria would become the first Australian state to introduce a legislated two-day work-from-home right for eligible employees. The outcome could influence future discussions around flexible work, employment law and workplace rights across the country.
Regardless of the final result, the proposal highlights how hybrid work has evolved from an employer benefit into one of the most important workplace policy debates in Australia.
Further details on the proposal and implementation timelines are available through the Victorian Government.
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