Before the law lands: how to prepare for Victoria’s work from home legislation

Update: As of 11 August 2026, this legislation has been delayed until 1 July 2027. The postponement follows concerns from Victorian business groups over cost and implementation timeframes, and new Premier Ben Carroll’s efforts to reset relations with the business community – though the government maintains the laws will still pass before the November state election. The article below has been edited to reflect these changes.

Victoria is on the verge of a significant shift in workplace legislation. In this article, we break down what’s been proposed, what it means for employers, and the practical steps organisations can take now – before any law is passed – to make sure they’re ready. 

What’s being proposed? 

The Victorian Government has announced its intention to give eligible employees a legal right to work from home two days per week. If passed, the legislation would represent a world-first workplace entitlement – and one that carries real implications for how Victorian businesses manage their people. 

Legislation was introduced to Parliament in June 2026. If it passes, the right would commence on 1 July 2027. 

The proposal has political dimensions – it faces opposition, and its passage through Parliament isn’t guaranteed, as shown by the recent delay to allow further consultation with business. But employers would be wise not to wait on the outcome before taking stock of their current position. 

This initiative operates solely within Victoria and is distinct from the federal Fair Work Act. It also provides a far broader entitlement than the existing Fair Work Act right to request flexible working arrangements.

How will it work in practice? 

Under the announcement, Victorians who can work from home would have the right to do so two days per week. The right would apply regardless of workplace size, and it would be enshrined in the Equal Opportunity Act – giving it considerably more weight than a contractual or policy-based entitlement. 

The proposed dispute resolution pathway is formal and structured. Unresolved disputes would go first to the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for conciliation. If conciliation fails, matters would proceed to the Victorian Civil and Administrative Tribunal (VCAT). This is an enforceable mechanism with real consequences for organisations that can’t demonstrate they’ve handled requests fairly and consistently. 

The landscape this law responds to 

More than a third of workers already work from home regularly, including 60 per cent of professionals. The Government points to workforce participation being 4.4 per cent higher than pre-pandemic levels as evidence that flexible work has brought more people – particularly parents and carers – into employment. The proposed law isn’t attempting to introduce a new norm; it’s seeking to protect one that’s already well embedded in many workplaces. 

That context is useful for employers thinking about how to position themselves ahead of any legislative outcome. Organisations that have already built genuine, well-considered flexible work frameworks are in a strong position. Employers who haven’t should use this moment as a prompt to act – regardless of whether the law ultimately passes. 

What employers should be doing now 

There are four areas worth addressing in the months ahead. 

1. Policy review and development: Existing flexible work policies should be assessed for clarity and consistency. Where no formal policy exists, developing one now is a sensible step. A sound policy sets out how requests are made and assessed, what criteria apply, and how decisions are communicated and documented. Informal arrangements leave organisations exposed if a dispute arises. 
2. Manager capability. Managers are the first point of contact for flexible work requests, and inconsistent decision-making is one of the most common sources of workplace disputes. Managers need a clear understanding of the framework they’re operating within and how to apply it fairly across their teams. 
3. Assessment. Employers will be required to address each specific role as part of their eligibility assessment of employees’ right to work remotely. Employers who can show real, evidence-based reasons for needing people on–site — such as work that truly requires in‑person collaboration, direct client interaction, or access to specialised equipment — may still require office attendance. However, employers whose justification is merely a preference for visible presence, without meaningful evidence that remote work negatively affects performance or operations, are facing growing legal vulnerability. 
4. Documentation and record-keeping. If a request is declined or modified, the reasoning needs to be documented clearly. Should a matter ever reach VCAT, the quality of that record-keeping will matter. Good documentation protects both the organisation and the employee. 

The broader opportunity 

Whether or not this legislation passes in its current form, the direction of travel is clear. Flexible work is increasingly a baseline expectation for employees, not a perk. Organisations that build the right frameworks now won’t just be better placed for compliance – they’ll be stronger on attraction, retention, and employee trust. 

Citation HR helps businesses develop compliant, practical HR policies and supports managers to apply them consistently. If Victoria’s proposed work-from-home legislation raises questions for your organisation, our team is ready to help. We’re offering complimentary workplace compliance consultations to ensure your business is up to date with current legislation and prepared for future changes. Request a call today.