The Victorian Government’s proposed Equal Opportunity Amendment (Work from Home) Bill 2026 could significantly change how employers manage flexible work arrangements. If passed, eligible employees whose roles can reasonably be performed remotely would have a legal right to work from home from 1 September 2026 for up to two days per week, moving work from home arrangements from a discretionary benefit to a statutory entitlement. For small businesses, this entitlement will commence on 1 July 2027.
Key legal risks
For employers, the key legal risk is that a refusal to permit working from home may become subject to challenge. The Bill proposes that employers will need to justify why a requested arrangement is not reasonable and provide written reasons for any refusal. This creates potential exposure to disputes, regulatory scrutiny and litigation where decisions are not supported by clear evidence or where businesses rely on broad return-to-office policies without considering individual circumstances.
There are also practical compliance risks. Employers should expect increased requirements around documentation, decision-making processes and manager training. Organisations that do not have clear policies or consistently apply their work from home arrangements may face allegations that decisions are arbitrary, unreasonable or inconsistent with their legal obligations.
Getting your business ready
Although the Bill is still before Parliament, employers should start reviewing flexible work policies, identifying roles that may be suitable for remote work, and documenting the operational reasons why particular roles require office attendance. Taking these steps now will help minimise legal risk and place businesses in a stronger position if the proposed reforms become law.
Written by: Caroline Mostafa and Greg Doran
