A new work-from-home law set to be enacted in Victoria, Australia, could significantly shift employee rights across the country, with legal experts suggesting it may establish a national precedent. The legislation, championed by Victorian Premier Jacinta Allan, will allow millions of Victorians to work from home up to two days per week.
The Equal Opportunity Amendment (Work from Home) Bill 2026 is slated to take effect for large businesses on September 1, 2026, and for small businesses on July 1, 2027. It applies to full-time, part-time, and casual employees.
Shifting Employer Responsibilities
Employment lawyers have indicated that the implementation of this law in Victoria could make it more challenging for employers to reject remote work requests elsewhere. Under the federal Fair Work Act, employees can currently request to work from home, but employers have a more straightforward process to deny these requests by demonstrating "reasonable business grounds." The new Victorian law imposes stricter conditions on employers, requiring them to prove that remote work would significantly impact the business, including customer outcomes, productivity, and relationships.
Trent Sebbens, a partner at Ashurst, suggested that businesses operating in multiple states might find it difficult to reject similar requests in other jurisdictions if they have not been able to refuse them in Victoria. Brad Popple, a partner at Kingston Reid, echoed this sentiment, stating that factual examples of employees successfully working from home in Victoria are likely to be referenced and relied upon by workers in other states whose requests are denied under the federal system.
Questions of Jurisdiction
Concerns have also been raised regarding the extraterritorial reach of the Victorian law. Tamsin Lawrence, an associate director at Australian Business Lawyers & Advisors, questioned the extent to which Victorian law, and specifically the Victorian Civil and Administrative Tribunal (VCAT), could enforce its provisions against businesses based outside of Victoria, such as those in America. The clarity on when the conduct of a non-Victorian-based business would be considered a breach of these working-from-home rights remains unclear.
Business Concerns
Business leaders have voiced apprehension about the potential for inequity. Michael Schneider, the boss of Bunnings, previously warned that the new laws could create "structural inequity." He highlighted that while some employees, such as those in floor, distribution, or manufacturing roles, must be physically present to perform their duties, others in support teams would gain a legal right to work remotely. Schneider expressed a belief that such arrangements should be fair and equitable for all employees within a company.