WFH as a legal right? The Allan Labor Government’s push to legislate remote work in Victoria
Victoria Set to Guarantee Work-from-Home Rights: What Employers Need to Know
Premier Jacinta Allan has announced a bold move to make Victoria the first Australian state to enshrine the right to work from home into law, guaranteeing at least two days of remote work per week where a role permits it.
Unveiled at a recent Victorian Labor conference, the proposed legislation is designed to modernise how we work, promote workforce participation, and support employees with caring responsibilities, which may allow for more of the workforce to be employed and curb congestion - the idea is particularly attractive to women with children, carers and people with disability.
What’s Being Proposed?
Right now, the proposal is still in the consultation phase; but if it goes ahead, it would give Victorian employees the legal right to request two work-from-home days each week, as long as their role can reasonably be done remotely. This would apply to both public and private sector workers, with the bill expected to be introduced before the 2026 state election.
The Allan Government is framing it as a move towards “fairness, flexibility, and futureproofing the workforce.” They’re pointing to growing research showing that remote and hybrid work can lift productivity, improve work-life balance, and even ease things like traffic and transport costs.
Premier Jacinta Allan summed it up by saying, “Flexible work helps people stay connected to their jobs, their families, and their communities and we want to make sure those benefits are protected.”
That said, many small and medium businesses feel strongly that the choice of where and how a role is performed should sit with the employer - not be decided by legislation. There’s growing concern that this type of policy, while well-intentioned, may not be practical across all industries or roles.
What Does This Mean for Businesses?
If passed, this legislation would require employers to assess which roles can be performed remotely and accommodate a minimum of two WFH days where reasonable. This will likely involve:
Reviewing position descriptions and job functions
Updating workplace policies to define “reasonable” WFH arrangements
Consulting with staff on flexible work preferences
Adjusting management, performance, and communication frameworks
While this change could offer real benefits for a range of workers, what does it actually mean for businesses and how they operate?
Plenty of industry groups have voiced serious concerns, from legal to practical to ethical. Some even going as far as saying, “it just can’t happen.”
One of the big worries is around staff productivity. Some businesses have already banned WFH in certain roles to make sure employees are staying on task during company time. There are also concerns around mental health, with less time in the office potentially leading to feelings of isolation and disconnection from the team.
And then there’s the issue of fairness. In some workplaces, only a small number of roles can realistically support two days of remote work each week. That could create a divide between employees who get the flexibility and those who don’t, potentially impacting team culture and morale.
The Victorian Chamber of Commerce has warned that a “one-size-fits-all” mandate could drive businesses interstate, reduce productivity, and create inequity between job types. It also raises potential constitutional clashes with federal industrial relations laws and existing enterprise agreements, not to mention much of workplace law sits at a federal level.
Employers may also need legal guidance to navigate overlapping obligations if federal frameworks don't align with state legislation. For businesses already embracing flexible work, this may simply formalise existing practices and offer a competitive advantage in attracting and retaining staff.
The pandemic showed us that plenty of jobs can be done from home. Since then, hybrid work has become a must-have for many employees - it's no longer just a perk. In fact, surveys show that over 60% of Australians would consider quitting if they were told to return to the office full-time.
While the Victorian government is shining a light on the positives for working parents, carers, and people with disabilities, it’s fair to ask: what will a shift like this really mean for businesses?
On one hand, it could reshape how we think about work. On the other, it feels like a strategic move in the lead-up to the 2026 election, positioning the government as progressive and worker-focused to gain favour with voters.
This proposed law could seriously reshape the future of work in Victoria sparking national debate and possibly setting the tone for other states to follow. Whether you see it as progress or an overreach of power, one thing’s for sure: the way we work is changing, and businesses need to be ready.
On paper, it sounds like a win for flexibility. But for many businesses, it might not be so simple. What looks like a great idea in theory could bring some real challenges in practice from managing productivity to keeping teams connected and ensuring fairness across different roles.
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