The Victorian Working From Home Bill has been introduced to Parliament: What employers need to know

Key takeaways

• WFH rights will extend to a broad range of full-time, part-time and some casual employees in Victoria.
• Eligible full-time employees (who work 38 or more hours per week) will be entitled to work from home two days per week.
• Although part-time and casual employees will also be entitled to work from home, the pro rata calculations to assess their entitlements are yet to be determined.
• Employers will be required to permit WFH requests made by employees unless they are unreasonable, with the threshold of unreasonableness being considerably high.
• VEOHRC and VCAT will deal with disputes over refusals to allow WFH requests.
• VCAT will have the power to make orders requiring an employer to permit a WFH arrangement and pay compensation where they have prevented employees reasonably exercising their right to WFH.
• Employers will bear the burden of reasonable costs associated with employees’ WFH arrangements.

Introduction

On Tuesday 16 June 2026, the Government introduced the long-awaited Equal Opportunity Amendment (Work from Home) Bill 2026 (WFH Bill) to Parliament. It passed its first reading and moved to a second reading on 17 June 2026, and it remains to be debated.

If it passes, the proposed reforms will come into effect on 1 September 2026 for most workplaces, or 1 July 2027 for businesses with fewer than 15 employees.

Who is covered?

The Bill considerably expands the range of employees who are or will be entitled to work from home. The proposed right to work from home would apply to “eligible employees”, which excludes employees who are:

• on probation;
• undertaking an apprenticeship, traineeship, internship, graduate program, work experience program, or similar program;
• casuals who are not regular or systematic;
• eligible to request flexible working arrangements under section 65 of the Fair Work Act (due to specified personal circumstances such as pregnancy, parental or carer responsibilities, disability, age, or family/domestic violence contexts)
• contractors;
• gig workers; or
• road transport contractors.

What is the proposed entitlement? 

Eligible employees who work 38 or more hours per week will be entitled to work from home up to two days per week, where it is reasonable for them to do so. Employees who work fewer than 38 hours per week will be entitled to work from home for a period calculated on a pro rata basis, where it is reasonable to do so. At present, the pro rata basis for calculating part-time and casual employees’ work from home entitlements is yet to be finalised, with the current draft of the proposed Bill deferring calculations to the regulations.

When considering whether it is reasonable for the employee to work from home, the only matters to be considered are:

• the inherent requirements of the role, including whether those requirements can be satisfied:
  • without the employee being present at their regular workplace; or
  • without the employee using equipment at their regular workplace; or
  • without in person interactions between the employee and members of the public, clients or customers;
• the impact that the employee working from home would have on the employer, including;
  • significant decreases in productivity or efficiency; or
  • adverse impacts on safety; or
  • significant adverse impact on staff supervision, training or professional development; or
  • significant adverse impact on capacity to build relationships between the employee and stakeholders,
  • clients, or customers; or
  • significant adverse impacts on customer service outcomes; or
  • significant adverse impact on confidentiality or data protection; or
  • excessive financial costs for the employer; or
  • impracticable changes to the working arrangements of the employee or any other employee; or
  • impractical new hirings.

If an employer considers that the requested arrangement is not reasonable, they must consider allowing a different working from home arrangement unless there are no arrangements which would be reasonable. Given the matters outlined above, it will be difficult for many employers to establish that it is reasonable to reject a request outright.

In addition, where it is reasonable for an employee to work from home, employers will be required to pay any reasonable costs necessary to enable the employee to work from home, which will include the cost of essential hardware, software, and secure access to the employer’s information systems.

Process

Employees will be required to make formal written requests outlining the days in which they request to work from home, and identifying any other location from which they intend to work. The employer will then be required to provide a written response to the request within 21 days, explaining its determination on the reasonableness of the request, and whether or not it is approved, or whether an alternative arrangement is proposed.

What employers should do now

Although Parliament has not yet voted on the WFH Bill, it is possible that some variation of it will be passed, resulting in significant implications for Victorian employers from as soon as 1 September 2026. To prepare for the WFH laws, employers should:

• review which of their employees’ roles genuinely require in-person attendance at the workplace;
• begin an assessment of equipment available to assist in facilitating employees to work from home;
• begin an assessment of IT and cyber security systems in place to ensure secure access for employees working from home;
• consider cost implications for any deficits in equipment and systems necessary to facilitate employees working from home;
• consider what additional measures will need to be implemented to maintain connection and culture in the workplace; and
• train management staff on effective remote supervision and management of employees.

How we can help

Russell Kennedy’s Employment team advises organisations across all sectors on meeting their obligations under Australia’s employment laws and related instruments, preparing for emerging regulatory reforms, and navigating workplace disputes.

We can assist by:

• assessing whether your employees are likely to fall within the scope of the WFH Bill and identifying the practical implications for your business;
• reviewing and updating employment and flexible working policies to reflect the Bill’s proposed right to work from home; and
• assisting with putting systems in place to consider and assess the reasonableness of working from home requests.

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The information contained in this Insight is intended as general commentary and should not be regarded as legal advice. Should you require specific advice on the topics or areas discussed please contact the Russell Kennedy team.