On 16 June 2026, the Victorian Government introduced the Equal Opportunity Amendment (Work from Home) Bill 2026 (Bill) into Parliament.
In this update, we outline what the proposed changes to work from home laws may mean for your business, and what to expect if and when the Bill becomes law.
What law is proposed to change?
The Bill introduces amendments to the Equal Opportunity Act 2010 (Act).
Why is the law changing?
The Victorian Government has stated that the ability for employees to work from home (WFH) is at risk and that everyday, unions tell it that workers are being denied reasonable WFH requests.1
However, a systemic issue of WFH requests being denied by employers is not evident in the statistics published by the Fair Work Commission (FWC). During the 2024/2025 financial year, out of a total of 36,228 lodgements, the FWC only received 306 applications for it to deal with a dispute about requests for flexible work arrangements (noting these applications also deal with other matters aside from WFH requests).2
When is the law changing?
If passed, the amendments are expected to take effect on 1 September 2026, except for small businesses (defined as employing 15 people or less) where the amendments would take effect on 1 July 2027. It is possible the amendments might be delayed in the Upper House.
What would be the new rights for employees?
The amendments would entitle eligible (full-time) employees to WFH (or any other place that is agreed to by the employer and employee) for two days each week (part-time and casual employees will be given pro-rata entitlements).
Who would be an eligible employee?
An eligible employee would be any employee, excluding an employee who is:
- on probation or is undertaking an apprenticeship, traineeship, graduate program, internship, work experience or similar program;
- a regulated worker or is employed by a regulated business;3
- a party to a service contract;
- eligible to make a flexible working arrangement application and wants to WFH due to that reason4 (noting, an employee will be an eligible employee if the reason they wish to WFH is not one of the reasons listed in section 65 of the Fair Work Act); or
- a casual employee who is not employed regularly or on a systemic basis.
What would be the process for an eligible employee to be able to WFH?
The steps would be as follows:
- The employee must lodge a written ‘Work from Home Notice’ (Notice) with the employer. The Notice should include, if practicable for the employee to do so:
- the specific days the employee intends to WFH;
- the specific times the employee intends to WFH; and
- if the employee intends to work from another place that is not their home.
- The employer must provide a written response to the Notice within 21 days.
Can a business refuse a WFH request in the Notice?
Yes, a business will be able to refuse a WFH request but only if it deems that it is not ‘reasonable’ to allow the employee to WFH, as set out in the Notice.
However, the business must also consider if it would be reasonable for the employee to WFH on a different day or at different times to those set out in the Notice.
When would a refusal be ‘reasonable’?
When considering a request, a business would be limited to consider the following matters:
- the inherent requirements of the employee’s role and if those requirements can be satisfied on specific days and times without the employee’s attendance at the workplace, without using equipment at workplace or without in person interactions with coworkers, clients, customers or stakeholders;
- the impact on the business from the employee working from home and if this would:
- be likely to cause a significant decrease in productivity or efficiency;
- have an adverse impact on any person’s safety;
- have a significant adverse impact on supervision, training or professional development of the employer’s employees;
- have a significant adverse impact on the capacity to build relationships between the employee and stakeholders, clients or customers; or have a significant adverse impact on customer service outcomes;
- have a significant adverse impact on confidentiality or data protection;
- impose excessive financial costs on the employer;
- require the employer to make changes to the working arrangements of the employee or any other employee that are impractical;
- require the employer to make new hirings that are impractical; and
- any matters that may be prescribed in the regulations made under section 190 of the Act.
A business must provide the reasons for a refusal to the employee.
Will businesses need to supply employees with equipment to WFH?
Yes, employers would need to pay for all reasonable but not excessive costs that would allow an employee to WFH, such as essential equipment or secure access into IT systems.
What happens if there is a dispute between an employee and employer?
An employee would be able to take a dispute to either the Equal Opportunity Commission or the Victorian Civil and Administrative Tribunal (VCAT).
What orders will VCAT be empowered make?
VCAT will have the power to order:
- the prevention of any further contraventions of the Act (e.g. require the employee to be permitted to WFH); and
- compensation or redress due to loss, damage or injury of an employee (e.g. a payment by an employer to an employee for any loss caused from the refusal of a WFH request).
The Act would also allow VCAT to make interim orders before a dispute is heard. This could include allowing an employee to WFH before any hearing.
What should business do now?
It is reasonable to anticipate that the amendments will be passed, and the law will come into effect (subject to the Upper House) for employers (other than small businesses) from 1 September 2026. Employers should begin considering what impacts the new WFH laws may have on their operations and how they would respond to WFH requests from employees who are currently working exclusively at the employer’s premises.
Contact us
If you have any questions arising from the Victorian Government’s proposed changes to WFH laws, please contact a member of our Workplace Relations team.
References
1. https://www.premier.vic.gov.au/labor-locks-your-right-work-home
2. Fair Work Commission Annual Report 2024-2025
3. As defined in the Fair Work Act 2009 (Cth) sections 15G-15F.
4. As set out in the Fair work Act 2009 (Cth) section 65.
| Disclaimer: This publication contains comments of a general nature only and is provided as an information service. It is not intended to be relied upon, nor is it a substitute for specific professional advice. No responsibility can be accepted by Rigby Cooke Lawyers or the authors for loss occasioned to any person doing anything as a result of any material in this publication.
Liability limited by a scheme approved under Professional Standards Legislation.© 2026 Rigby Cooke Lawyers |