Victoria’s WFH Law Just Got Shelved. We Told You This Was Coming.

Well, that didn’t take long. Less than a month before Victoria’s world-first work from home law was due to start, new Premier Ben Carroll has pulled it. The right to work from home two days a week, originally set for 1 September 2026, is now delayed until 1 July 2027, conveniently landing after the November state election.

If your head is spinning, you are not alone. We have been telling clients for months that this legislation was rushed, poorly consulted, and never going to survive contact with the real world. Turns out we were right. Here is what actually happened and what you need to do about it.

What actually changed?

The proposed law would have given eligible full-time, part-time, and regular casual employees a statutory right to work from home at least two days a week, if their role could reasonably be done remotely. It was due to commence on 1 September 2026. Premier Carroll has now pushed back the start date to 1 July 2027, following direct conversations with the Victorian Chamber of Commerce and Industry and the Australian Industry Group.

Carroll is framing this as a reset of the relationship with business. Read between the lines, and it is a government trying to avoid walking into an election with angry employers at its back.

Why did we call this rushed from day one?

This policy was launched at a Labor state conference with a headline number attached, a claim that it could save the average worker $110 a week. Nice soundbite. Thin on detail. A one-size-fits-all statutory right, applied across every industry and role type in the state, was always going to run into the reality that flexible work is not the same job everywhere.

Industry groups pointed out something we have been saying to clients for a long time. Most Victorian businesses already offer flexible work where it makes sense. You do not need a blanket law to force good management practice. What you need is a clear policy, a consistent process, and managers who know how to have the conversation properly under the existing Fair Work flexible work request framework.

Was business ever going to accept this?

No, and the pushback was immediate and loud. Business groups argued the law would increase regulatory costs, make hiring harder, and give employers a reason to shift jobs and investment to other states. The Victorian Chamber went so far as to call it a profound risk to the state economy and is still pushing for the whole thing to be scrapped, not just delayed.

The state opposition was not planning to block the bill outright, but had amendments ready. None of that reads like a policy that was properly tested with the people who actually have to implement it.

We had clients actively looking at moving their Victorian offices interstate to dodge this one. That is not businesses being precious, that is how seriously small business owners were taking a law that made no sense operationally. And it points to a much bigger problem than one delayed bill. National employers already have to stay across workers’ compensation schemes that differ state by state, separate insurance requirements in every jurisdiction, WHS laws that are not harmonised, LSL leave schemes that are state based and now a patchwork of WFH entitlements depending on which side of a border your office sits. This is not one country with one set of workplace rules. It is eight different systems duct taped together, and the red tape is real. What Australia actually needs is a government prepared to harmonise IR law nationally instead of every state running its own experiment. Until that happens, do not be surprised when more business owners decide it is easier to move the business, and sometimes the whole family, somewhere with a lot less friction and a lot less tax.

What should employers do right now?

Do not tear up any work you have already done on your flexible work policy. Here is the practical bit.

• Keep managing flexible work under the current Fair Work request and refuse process. That has not changed and is not going anywhere.
• Do not assume this law is dead. Delayed is not scrapped. Carroll intends to push it through parliament before the election, using the extra time for more consultation.
• Hold off on any major rewrite of WFH policy until closer to mid 2027, and watch for amendments coming out of the consultation period.
• Keep documenting how flexible work actually operates in your business now. That evidence base will matter, whatever the final law looks like.

What happens next?

Expect more consultation between now and the November election, more noise from both sides, and a government trying to land a version of this law that will not cost it votes. Whatever comes out the other side, it is unlikely to look exactly like the original plan. We will keep watching this one and update you the moment there is a firm shape to it.

FAQs

Is Victoria’s work from home law dead?

No. It has been delayed, not scrapped. The new start date is 1 July 2027, and the government intends to push it through parliament before the November 2026 election.

Do Victorian employees still have any right to request work from home?

Yes. The existing Fair Work flexible working arrangement request and refuse process still applies and has not been affected by this delay.

Should employers change their WFH policy now?

Not yet. Keep your current policy and process running as is, and revisit it once the shape of the final legislation becomes clearer closer to mid 2027.

Could the law change further before it starts?

Very likely. The government is using this extra time for more consultation with business groups, so the final version could look different to what was originally proposed.

Whiplash policy is exhausting to manage on your own.

HR Gurus tracks every twist and turn in employment law so you don’t have to. We cut through the BS and tell you what actually matters for your business, not just what made the headlines. Get in touch and we’ll make sure your policies are ready for whatever version of this law actually lands.