New work-from-home laws: what employers need to know

A major new workplace reform in Victoria is likely to signal the direction of future workplace regulation across Australia.

Victoria plans to introduce “world first” legislation enshrining the right to work from home two days per week for jobs that can reasonably be performed remotely. The new right will amend the Equal Opportunity Act 2010 (Vic) and will apply to Victorian businesses from 2 September 2026 (1 July 2027 for small businesses).

Following implementation of the new provisions, any work-from-home disputes that cannot be resolved internally will be dealt with first by conciliation at the Victorian Equal Opportunity and Human Rights Commission and then via tribunal processes.

Are the proposed changes really “world-first”?

Under the Fair Work Act 2009 (Cth) (Fair Work Act), certain employees in Australia (often those with carer responsibilities) already have the right to request flexible working arrangements, including working from home. Currently, employers can refuse such requests on reasonable business grounds.

The Victorian proposal would go further by creating a statutory entitlement for all employees to work from home two days per week providing their job can reasonably be performed remotely. This marks a significant shift from the current request-based framework which extends only to limited categories of employees.

While many jurisdictions in Europe currently recognise a right to request flexible or remote work, no jurisdiction currently guarantees a minimum number of remote working days by law.

Part of a broader workplace trend

The new work-from-home legislation is part of a broader shift towards flexibility in Australian labour practices. This focus on flexibility has been gaining momentum since COVID and is set to continue.

In particular, the Australian Council of Trade Unions’ has been lobbying for additional paid annual leave for Australian employees, stronger flexible work rights, and better work-life balance protections.

There have already been relatively recent changes in these areas, including the expansion of flexible work requests, the introduction of the “right to disconnect” and most recently, the proposed introduction of a four-day work week (with no reduction in pay) for employees of Launceston City Council.

We anticipate there will be further significant changes in legislation in all these areas and across Australia over the coming few years.

Implications for employers

The Committee for Melbourne warned that the new legislation could deter investment or encourage businesses to move interstate. Meanwhile, the Victorian Government argues that flexible work improves productivity and helps attract and retain talent.

Remote working legislation will place additional obligations on employers to ensure legal compliance. In light of any new legislation, employers should review, at least:

• their current working practices and how best to accommodate flexible working;
• their employment contracts;
• hybrid work/flexible work policies;
• work health and safety obligations for home offices;
• dispute resolution processes; and
• productivity management.

Key takeaways for businesses

It is likely that the Victorian proposals will be just the start of widespread changes throughout Australia, including, possibly changes to the Fair Work Act and National Employment Standards.  

Employers should begin to consider hybrid work options now and seek advice on best practice and legal obligations arising from the expected changes.

If you require assistance in relation to any of the information provided above, Pragma’s employment team can provide advice to you and your business to minimise your future risk. Contact us today by clicking here or call us on (08) 6188 3340.