Victorian Parliament introduces proposed right to work from home

In August last year, the Victorian Labor Government announced plans to introduce legislation enshrining the right to work from home in Victoria two days per week. The announcement was not without controversy, with Bran Black of the Business Council of Australia commenting that "legislating work from home is exactly the sort of top down, government-knows-best approach that reduces flexibility and keeps productivity at six-decade lows".

Following consultation, the Equal Opportunity Amendment (Work from Home) Bill 2026 (Bill) was introduced to the Victorian Parliament on 16 June 2026.

If passed, the Bill will amend the Equal Opportunity Act 2010 (Vic) to create a statutory right for Victorian employees to work from home from 1 September 2026 (other than for small businesses for which the commencement date is 1 July 2027). The proposed entitlement is significant because it is framed as a right to work from home, not merely a right to request flexible working arrangements, as is the case under the Fair Work Act 2009 (Cth) (Fair Work Act).

What is the proposed right?

Eligible employees would have a right to work from home for up to:

• two days per week for full-time employees; or
• an equivalent pro rata period for part-time and casual employees.

When would it be considered “reasonable” to work from home?

An employer who receives a notice from an eligible employee must allow them to work from home, unless it is not reasonable to do so.

When assessing reasonableness, relevant factors include whether working from home would:

• prevent the employee from performing the inherent requirements of their role;
• require equipment that is only available at the workplace;
• affect in-person client, customer or stakeholder interactions;
• significantly reduce productivity or efficiency;
• adversely affect safety;
• significantly affect supervision, training or professional development;
• significantly affect relationship-building, customer service, confidentiality or data protection;
• impose excessive costs on the employer; or
• require impractical changes to working arrangements or new hiring.

The Bill makes it clear that significant impacts are required in order to prevent an employee from working from home, indicating that there will be a high bar for employers to establish unreasonableness.

Employers must also consider relevant legal requirements relating to safety, security, welfare and supervision.

Who is eligible?

The proposed right would apply to eligible full-time and part-time employees, and casual employees employed on a regular and systematic basis.

Employees excluded from the proposed right include probationary employees, non-regular casuals, employees undertaking training or entry-level programs, certain Fair Work Act-regulated workers or contractors, and any prescribed employees or classes of employees.

Importantly, employees who are already eligible to request flexible working arrangements under section 65 of the Fair Work Act will be excluded from the new provisions in Victoria. What this means in practice is that any employee who has completed 12 months of continuous service and who is seeking to work from home because of their:

• parental or carer's responsibilities;
• disability;
• age (being 55 or older);
• pregnancy; or
• family and domestic violence,

will continue to be covered by the right to request flexible work under the Fair Work Act and will not be eligible to issue a notice under the proposed new Victorian law.

We anticipate there will need to be test cases about this exclusion, as its practical operation remains unclear. The Law Institute of Victoria has already expressed concern about duplication between the Bill and the Fair Work Act provisions, the potential for confusion for both employers and employees, and the prospect of a constitutional challenge.

How would the right be exercised?

For eligible employees, the process is similar to the existing right to request flexible working arrangements under the Fair Work Act. However, the Bill provides for an eligible employee to issue a work from home notice, rather than make a request.

The notice must be in writing and must set out:

• the proposed days and times the employee intends to work from home; and
• any proposed work location other than the employee’s private residence.

However, an employee does not need to specify days or times if it is not practicable to do so.

Employers must respond in writing within 21 days. If the employer does not consider the proposed arrangement reasonable, it must explain why and state whether it will allow the employee to work from home for an equivalent period, a lesser period, or not at all.

Who pays the costs?

Under the Bill, Employers will be required to pay any reasonable costs necessary to enable eligible employees to work from home, including the costs associated with:

• essential equipment, such as hardware and software; and
• secure access to the employer’s information systems.

This will be a key practical issue for employers, particularly in relation to home office equipment, technology, cyber security, data protection and systems access.

Disputes

Work from home disputes would fall within the existing dispute framework under the Equal Opportunity Act 2010 (Vic).

Disputes may be lodged with the Victorian Equal Opportunity and Human Rights Commission for conciliation or may proceed to the Victorian Civil and Administrative Tribunal (VCAT) for determination.

VCAT would have power to make orders, including requiring an employer to allow an employee to work from home for a specified period or to take steps to comply with the proposed work from home provisions.

Key takeaways

If passed, the Bill will significantly change the regulation of work from home arrangements in Victoria.

As the Bill has only recently been introduced, employers should monitor its progress and be prepared for possible amendments before the legislation is finalised.

For more information on how the Bill may impact your organisation, please contact our Workplace Relations & Safety team.