On 16 June 2026, the Victorian government introduced the Equal Opportunity Amendment (Work from Home) Bill 2026 (Vic) (the WFH Bill). The WFH Bill proposes a significant shift in workplace arrangements by embedding a statutory right for eligible employees to work from home for up to two days per week, where it is reasonable to do so. 

Date of Commencement

The WFH Bill is expected to take effect on 1 September 2026. However, small businesses (employers with fewer than 15 employees) will have a deferred commencement date of 1 July 2027.  

Right to Work From Home

The proposed reform moves working from home from a discretionary arrangement to a statutory entitlement. Employees will have a right to work from home where their role can reasonably be performed remotely as follows:

• Up to two days per week for full-time employees; and
• A pro-rata entitlement for part-time employees (with the calculation method to be set by the regulations).

This places the onus on employers to justify any refusal, similar to flexible working arrangements for employees with certain protected attributes under the Fair Work Act 2009 (Cth) (the FW Act). 

Eligible Employees

Many employees will be considered “eligible” to exercise the right, with limited exclusions that include:

• Employees on probation;
• Employees undertaking an apprenticeship, traineeship, internship, graduate program, work experience program or similar program; 
• Certain ‘regulated workers’ within the meaning of the FW Act (e.g. gig workers); or
• Casual employees not employed on a regular and systematic basis. 

Most significantly, any employees to whom the existing flexible working provisions in the FW Act apply (such as those with parental or caring responsibilities, with a disability, who are pregnant, who are over 55 years, or are experiencing or supporting somebody experiencing family and domestic violence) and who are seeking flexibility because of those circumstances are not eligible under the new WFH Bill. Generally, these individuals would make a request under the federal flexible working arrangements provision.

Practical Operation

The WFH Bill proposes that to exercise the right, an employee must provide written notice specifying their proposed working from home arrangements, including the days on which they propose to work from home and the intended place of work (if not their home). Employers will then be required to respond within 21 days.

If an employer does not agree to the requested arrangement, the response must:

• Confirm whether alternative working from home arrangements can be offered; and
• Set out reasons why the requested arrangement is not considered reasonable.

Grounds for Refusal

An employer may refuse a request only where it is not reasonable for the employee to work from home. While there are some similarities to the FW Act flexible working arrangements, the WFH Bill prescribes a closed set of factors that must be considered, focussing on:

• The inherent requirements of the role;
• The operational impact that working from home would have on the employer; and 
• Any prescribed matters. 

Relevant considerations include productivity, supervision, safety, customer impact, confidentiality, cost, and the practicality of altering working arrangements. Employers must assess these factors on an evidence-based basis.

Additional Employer Obligations

Where an employer is required to allow working from home under the WFH Bill, they will also be required to meet “reasonable costs” associated with the arrangement. This may include essential equipment and secure access to systems.

Pro-Rata Arrangements

For employees not working 38 hours per week, the entitlement is pro-rated. However, the method of calculation is left to the regulations, which have yet to be released.

Dispute Resolution

Notably, this right is to be introduced via an amendment to the Equal Opportunity Act 2010 (Vic) and will sit within its framework. Disputes between employees and employers may be brought to the Victorian Equal Opportunity and Human Rights Commission. Should conciliation between the employer and employee fail, the matter may then proceed to the Victorian Civil and Administrative Tribunal who may order that the employer permit the employee to work from home. 

Takeaways for Employers

The WFH Bill represents a material change to how flexible work arrangements are managed in Victoria. In particular, if it passes:

• Refusals of working from home will be constrained and subject to a structured statutory test;
• Decision-making will need to be clearly documented, reasoned and evidence-based; and
• There is an increased risk of employee claims where requests are not appropriately assessed.

We recommend that employers pay close attention to the WFH Bill’s passage and begin reviewing their policies, role design, and decision-making frameworks to ensure they are positioned to respond to requests consistently and in accordance with the proposed legislation. 

The authors would like to thank graduate Tom Denovan for his contributions to this alert.