Victoria’s Work From Home Law 2026: What Employers Must Do Before September

Quick Answer: What Victorian Employers Need to Know

From 1 September 2026, Victorian employees gain a legal right to work from home two days per week if their role can reasonably be performed remotely. This applies to all businesses with 15+ employees from September 2026, and businesses under 15 employees from July 2027. Employers can refuse requests only if the role genuinely requires physical presence or there are legitimate business reasons. Disputes go to VEOHRC, not Fair Work, and refusals without solid justification may be treated as discrimination.

What’s Changing?

From 1 September 2026, Victorians will have a legal right to work from home two days per week if their role can reasonably be done remotely. This isn’t a request. It’s a legal entitlement, enshrined in the Equal Opportunity Act.

Here’s the quick version:

• Who: All Victorian employees whose roles can reasonably be done from home
• When: 1 September 2026 for businesses with 15+ employees, 1 July 2027 for smaller businesses
• How much: Two days per week
• Where disputes go: Victorian Equal Opportunity and Human Rights Commission (VEOHRC), then VCAT if conciliation fails

This is Australia’s first legislated right to work from home. Love it or hate it, it’s happening.

Who Does This Apply To?

Pretty much everyone in Victoria.

The Victorian Government initially floated exempting small businesses. That got shut down fast. If you’re a Victorian employer, you’re in. The only difference is timing.

Large Businesses (15+ Employees)

• Law starts: 1 September 2026
• You’ve got about five months to get your policies, systems, and manager training sorted

Small Businesses (Under 15 Employees)

• Law starts: 1 July 2027
• You get an extra 10 months to “get your HR policies and procedures in order”

But here’s the catch: just because you have more time doesn’t mean you should wait. The disputes are already coming.

What Does “Can Reasonably Be Done From Home” Actually Mean?

This is where it gets messy.

The law covers roles that can “reasonably” be performed remotely. But what’s reasonable?

• Definitely covered: Office workers, knowledge workers, accountants, marketers, IT staff, customer service roles that don’t need face-to-face contact
• Probably not covered: Retail workers, hospitality staff, tradespeople, factory workers, anyone whose job requires physical presence by its nature
• Grey area: Managers, team leaders, roles that involve some in-person collaboration but could theoretically be done remotely

The government says 36% of workers already work from home at least part-time, and 60% of professionals do. So if your competitors are letting people WFH, you’re going to have a hard time arguing it’s not reasonable for your business.

What If You Refuse a WFH Request?

You can refuse. But you’ll need a reason that sticks.

Under the law, disputes go to VEOHRC for conciliation. If that fails, it goes to VCAT. And because this is now in the Equal Opportunity Act, refusing a WFH request without a solid reason could be treated like discrimination.

Reasons that might fly:

• The role genuinely requires physical presence (operating machinery, face-to-face customer service, on-site safety requirements)
• You’ve got legitimate business reasons (team collaboration needs, client-facing requirements, confidentiality or security concerns)
• The employee doesn’t have a suitable home setup (though this one’s tricky, because they can argue they’ll fix it)

Reasons that won’t fly:

• “We don’t do that here”
• “I want everyone in the office”
• “It’s not our culture”
• “I can’t manage people I can’t see”

If your refusal sounds like a preference rather than a requirement, you’re going to lose at VEOHRC.

What Should Businesses Do Now?

Whether you’ve got until September or mid-2027, here’s what you need to lock down before the law kicks in.

1. Audit Your Roles

Go through every role in your business and categorise it:

• Remote-capable: Can do the job from home with no issues
• Hybrid-capable: Can do some work from home, but not all
• On-site only: Job requires physical presence

Document why each role sits where it does. If you can’t explain it, VEOHRC will assume it’s a preference.

2. Update Your Policies

You need a clear, written WFH policy that covers:

• Who’s eligible
• How requests are made
• What equipment the business provides (if any)
• WHS obligations when working from home
• How disputes are handled internally before they hit VEOHRC

If your policy is “we’ll deal with it case by case”, that’s not good enough anymore.

3. Train Your Managers

Your managers need to know:

• How to assess WFH requests fairly
• What reasons are legally defensible
• How to document their decisions
• What to do if someone’s performance drops while WFH

Because if a manager refuses a request because “I just think they should be here”, you’re the one defending it at VCAT.

4. Lock Down Your Position Descriptions

If a role is genuinely on-site only, your position description needs to say so. Clearly. With reasons.

✅ This works: “This role requires physical presence in our South Melbourne office five days per week due to client-facing responsibilities and secure data access requirements.”

❌ This doesn’t: “This role is based in our South Melbourne office.”

The first one is defensible. The second one is vague and won’t hold up.

5. Think About Your Real Concerns (And Address Them)

If you’re worried about productivity, collaboration, or team culture with WFH, that’s fair. But you can’t just say no because of vibes.

What you can do:

• Set clear performance metrics so you know if WFH is working
• Schedule in-office days for team collaboration (you still get three days a week)
• Use trial periods to test whether WFH works for specific roles

What you can’t do:

• Refuse WFH because you don’t trust people
• Use “culture” as a blanket reason when the role is clearly remote-capable

What About Costs?

Here’s a question no one’s answering yet: who pays for the home office setup?

The law doesn’t clarify:

• Whether you have to provide equipment (laptop, monitor, chair, desk)
• Whether you have to reimburse internet or electricity costs
• What happens if someone’s home setup doesn’t meet WHS requirements

This is going to be a minefield. Our advice: lock down your policy now on what you will and won’t provide, and make sure it’s in writing before September.

What Are Business Groups Saying?

They’re not happy.

The Victorian Chamber of Commerce and Industry, the Business Council of Australia, and the Property Council have all pushed back hard, arguing:

• It’s a one-size-fits-all mandate that doesn’t reflect how businesses actually operate
• It’ll drive investment and jobs out of Victoria
• Existing federal laws already cover flexible work requests
• Small businesses rely on in-person collaboration and mentoring

Even the Productivity Commission’s weighed in, saying Australia’s already at a “sensible middle ground” on WFH, and this law could make things harder, not easier.

But the Victorian Government isn’t budging. Premier Jacinta Allan says it’s about protecting families, saving money, and stopping bosses (and the Liberals) from taking WFH away.

So whether you agree or not, it’s happening.

The Real Issue: This Is Going to VEOHRC, Not Fair Work

Here’s the bit that should worry you.

This law isn’t going through Fair Work, where disputes are handled with workplace context and a bit of commercial sense. It’s going through VEOHRC and VCAT, where the framework is discrimination and human rights.

That means:

• The bar for proving your refusal was reasonable is higher
• You’re not just defending a business decision, you’re defending against a potential discrimination claim
• The process is slower, more formal, and more adversarial

And if you lose, you’re not just told to approve the WFH request. You could cop penalties, legal costs, and a public ruling that makes you look like the villain.

FAQ: Quick Answers to What Employers Are Asking

Do I have to let everyone WFH two days a week?

No. You only have to allow WFH if the role can reasonably be done from home. If the job genuinely requires physical presence (retail, hospitality, trades, on-site operations), you can refuse the request. However, you’ll need to document why the role requires physical presence, because disputes go to VEOHRC where you’ll need to prove it’s not just a preference.

Can I require people to be in the office more than three days a week?

Yes, if the role genuinely requires it. The two-day WFH entitlement means employees can work from home up to two days per week, but you can require them in the office for the remaining days if there are legitimate business reasons. Document why the role needs more than three days on-site, because if it goes to dispute, you’ll need to justify it.

What if someone’s performance drops while working from home?

You can manage performance issues the same way you would in the office. Set clear expectations, document performance concerns, and follow your normal performance management process. However, you can’t unilaterally revoke their WFH entitlement just because their performance has dropped. The right to WFH is separate from performance management, though serious ongoing performance issues could form part of a legitimate business reason for reviewing work arrangements.

Do I have to provide home office equipment?

The law doesn’t specify whether employers must provide home office equipment. However, you still have WHS obligations for employees working from home, which may include ensuring they have appropriate equipment to work safely. Create a clear policy now that outlines what equipment (if any) your business will provide, what employees are responsible for, and how WHS assessments will be conducted for home workspaces. Make sure this is documented before September 2026.

What if I run a small business and this is going to be a nightmare?

You’ve got until July 2027, which gives you 16 months to prepare. Use that time to get your policies tight, your position descriptions clear, and your managers trained. The extra time is meant to help small businesses get organised, but don’t wait until mid-2027 to start. The businesses that prepare early will handle this transition far more smoothly than those who scramble at the last minute.

Can I just make everyone’s role “on-site only”?

Not if the role can reasonably be done from home. VEOHRC will see right through blanket “on-site only” classifications that aren’t justified by the actual job requirements. If your accountant, marketing team, or customer service staff can do their work remotely (and especially if your competitors allow WFH for similar roles), you’ll lose any dispute. Each role needs to be assessed individually with documented reasons.

Key Takeaways for Victorian Employers

• ✅ The law starts 1 September 2026 for businesses with 15+ employees, 1 July 2027 for smaller businesses
• ✅ Employees get two days WFH per week if their role can reasonably be done remotely
• ✅ You can refuse, but only with documented, legitimate business reasons
• ✅ Disputes go to VEOHRC (not Fair Work), where the bar for proving reasonableness is higher
• ✅ Start now: audit roles, update policies, train managers, document everything

HR Gurus Top Tip: Get Ready, Because This Is Happening

Whether you think this law is brilliant or bonkers, it’s coming. And the businesses that get caught out will be the ones who ignore it until August and then panic.

Here’s what to do:

1. Audit your roles now
2. Update your WFH policy
3. Lock down your position descriptions
4. Train your managers
5. Document everything

Because the first dispute is going to set the tone for how VEOHRC interprets this law. And you don’t want to be the test case.

Need Help Getting Your Business Ready?

Don’t wait until August to panic.

We’re running free WFH Readiness Checks for Victorian businesses to get your policies, position descriptions, and manager training bulletproof before September.

[Book Your Free WFH Check]

Think this law is cooked? We’re also available for therapeutic venting sessions over coffee (virtually). Sometimes you just need to say it out loud to someone who gets it.

[Book a Vent Session] (We’ll bring the sympathy. You bring the frustration.)