Nation-first right to work from home set to redefine employer obligations

Flexible working arrangements have become a defining battleground for employee satisfaction and retention, particularly as organisations have accelerated the return to in-office attendance over the past two years. Against this backdrop, Victoria’s landmark move to legislate a formal right to work from home signals a profound shift in workplace regulation, with far-reaching consequences for employers.

Over 6.7 million Australians, representing 46% of the workforce, work from home at least some of the time. The remaining 54% work exclusively in-person.

VIC Premier Jacinta Allan emphasised the benefits, noting that “work from home works for families, because it saves time and money and it gets more parents working.”

Under the draft legislation, from 1 September 2026, employees in Victoria whose roles can be performed remotely will have a statutory entitlement to work from home for at least two days per week. For small businesses with fewer than 15 employees, the changes are scheduled to take effect from 1 July 2027.

The reforms are intended to operate broadly across the Victorian workforce, capturing both private and public sector employers, organisations that already operate hybrid or office-based models, and small businesses. In doing so, the framework signals a clear departure from the current position, where remote work arrangements largely sit within employer discretion.

At present, employers generally retain the authority to determine who may work remotely, tempered only by an employee’s capacity to request flexibility under existing workplace laws. Under the Fair Work Act 2009 (Cth), employees can request flexible working arrangements, including working from home, if they meet specified eligibility criteria such as having caring responsibilities, a disability, being aged 55 or over, or experiencing family or domestic violence. Employers may refuse those requests on reasonable business grounds.

The proposed Victorian legislation will extend beyond this framework. The right to work from home would no longer hinge on an employee demonstrating a qualifying personal circumstance, but instead on whether the inherent nature of the role allows it to be performed remotely.

While the proposal appears straightforward, several key questions remain unanswered, including how the “nature of work” and the “feasibility” of work from home will be defined. The scope of any exemptions and how the new entitlement will interact with modern awards, enterprise agreements and existing contractual arrangements will also require clarification.

Although the reforms are confined to Victoria, they are likely to create ripple effects for national employers seeking consistency across jurisdictions.

With draft legislation expected to be introduced into Parliament in July 2026, organisations are being encouraged to prepare by reassessing return-to-office and hybrid work policies, identifying roles that are genuinely suitable for remote work, and evaluating how performance management, supervision and Work Health and Safety (WHS) obligations can be effectively maintained in a remote working environment.

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