Victoria's new WFH legislation to be introduced to Parliament in July
The Victorian government has announced that it will introduce its work-from-home legislation in July, and expects it to take effect in September.
In an announcement on Wednesday, the government said the legislation will enable Victorians who can work from home to have the legal right to do so two days a week.
The right, to be enshrined in the Equal Opportunity Act, will be introduced to the Victorian Parliament in July.
It is expected to take effect on September 1, with a delayed commencement of 1 July 2027, for workplaces with fewer than 15 employees to give them time to adjust their HR policies.
Work from home works for families, because it saves time and money and it gets more parents working, said Premier Jacinta Allanin a statement.
That's why we will protect work from home in law from 1 September.
WFH not based on headcount
The timeline's announcement comes a day after the Victorian government said work from home rights will not depend on headcount.
If you can do your job from home, you'll have the right to do so – no matter the size of your workplace, the government saidin a media release.
That means small business workers who can work from home will have that right protected two days a week.
The government issued the update after noting that flexibility is less common in smaller businesses, which employ more than 1.3 million Victorians.
While not all small business workers are able to work from home, those that can deserve the same rights as someone working for a Big Four or a big bank, the government said.
'Political opportunism' from government
But businesses slammed the government's WFH plans and the way it announced the legislation.
The Australian Industry Group, which represents more than 60,000 businesses in the country, called the government's staggered announcement on the legislation political game-playing.
The intent of the legislation and the way the Government is announcing it suggests political opportunism, said Tim Piper, Ai Group Victorian Head,in a statement.
It will cost Victorian jobs and impact on the Victorian economy.
Piper accused the Allan Labor government of using the legislation as a cynical exercise aimed squarely at the state election in November.
And the Government seems unfazed by the burden on business, the 'us and them' approach this will create and the fact that unions have already said they will push for extra pay because some people have to attend work, Piper added.
The State Government would be much better showing support for local businesses rather than treating them in this manner and removing this important employment flexibility.
Businesses in Victoriahave previously expressed oppositionto the state's plans to legislate working from home, a benefit that seems to be in demand among employees.
Findings from the state's largest-ever poll with over 37,000 respondents found three-quarters of employees saying that the right to work from homewas extremely importantto them.
What the law means for employers
The introduction of the legislation in Victoria shifts working from home from a perk to a business expectation.
Alex Cass, human capital client leader at Aon, said large employers will need to introduce clear role definitions, expectations, and outcomes.
Organisations operating in Australia will also need to ensure they understand and meet local legislative requirements, Cass said.
Larger organisations are generally better placed to manage this through systems, structure, and policy.
For smaller businesses, the challenge will be applying the principle in a practical way without adding unnecessary complexity or compliance burden.
Smaller businesses often rely on more informal arrangements, which can increase the risk of inconsistency, non compliance, or employee grievances linked to work from home decisions, she added.
According to Cass, the policy highlights that flexibility can look different depending on scale, even when the intent is the same.
The real issue is not flexibility itself, but how it is applied. Not every role can be done remotely, and a one size fits all approach will not work, she said.
Employees will be looking for fair and transparent decisions. Employers, particularly small businesses, will need room to define what is reasonable in practice, so performance, customer needs, and team cohesion are not compromised.
