Home Sweet Home
Victoria is considering introducing one of the most significant workplace legislation reforms in recent years: a legally protected right to work from home.
The amendment to the Equal Opportunity Act 2010 (Vic) would mean a major cultural and operational change for workplaces throughout the state.
The legislation change, proposed by former premier Jacinta Allan, was to commence on Tuesday 1 September 2026 for businesses with 15 or more employees, and 1 July 2027 for small businesses.
The new premier of Victoria, Ben Carroll, has chosen to push back the government's proposed work-from-home laws for nearly 12 months, as the government seeks further consultation with business leaders and groups. This means the new law would come in to place on 1 July 2027. There may also be amendments to the proposed law change following consultation with the business community and opposition government.
At its core, the new law would require employers to approve work‑from‑home (WFH) requests if the role can reasonably be performed remotely. This includes all public and private sectors across corporate, administrative and professional roles, and now extends to regular casual and part‑time workers.
Refusals must be based on genuine operational grounds not preference, convenience or managerial style.
If a WFH request is unreasonably denied, disputes will be handled by the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for conciliation. If unresolved, the dispute can be escalated to the Victorian Civil and Administrative Tribunal (VCAT).
The benefits for employees
Based on data from the Australian Bureau of Statistics, there is more than 3.7 million Victorians currently employed, with one third already regularly working from home.
- Employees can save on commuting and related costs
- Working from home helps support parents and carers juggling work and family responsibilities.
- Increased job satisfaction and productivity
- More inclusive workplaces for people with disabilities, chronic illness or caring responsibilities
- For many, the right to work from home is not just a convenience, it’s a lifeline.
The benefits for employers
- Lower office leasing and utilities costs.
- Improved attraction and retention of talent.
- Access to a broader talent pool, including regional workers.
- Higher productivity in roles suited to remote work.
The business challenges
- Pressure from employees who cannot work remotely, leading to demands for alternative benefits
- Operational inconsistency for companies operating across states
- Small businesses, in particular, may lack the infrastructure, technology, or robust cyber security to support remote work effectively.
- Many struggle with motivation, prioritisation and boundaries
- Career stagnation, ambiguity around performance expectations can increase emotional exhaustion
- Some fear offshoring of remote‑capable roles.
The importance of a work‑from‑home policy
With the introduction of this legislation having a specific work from home policy is crucial. You need to provide clear instructions around employee performance.
How an employee works, where they work, the data and business-critical information they can access, the process of their daily check-ins, etc should all be mentioned in your work from home (WFH) policy.
- Remote‑work eligibility criteria
- WHS checklists
- Data security rules
- Clear performance expectations
- Procedures for submitting WFH requests
- A well‑designed policy protects both the employer and the employee.
- Assess WHS and supervision obligations
- Update performance management frameworks
Workplace health and safety at home
When an employee works from home, their home becomes their workplace. You as their employer may be liable if an employee is injured while working from home. You should develop robust WHS policy for employees working from home.
These should include:
- A checklist to confirm remote working set-ups meet WHS standards
- Security guidelines (storage of company data, accessing company data, using public WI-FI)
- A site inspection to identify potential hazards or areas where an incident could occur.
Working from home and mental health
Remote workers report increased burnout from constantly being accessible and using digital communication tools. It leads to mental fatigue, due to a lack of clear boundaries. Remote employees report they have trouble separating themselves from work at the end of the day.
Other common risks include:
- Unable to stay motivated
- Unable to prioritise workload
- Unsure about performance and career growth
- Inability to take mind off work
- Anxiety, stress, depression
Time theft
Time theft is consciously choosing to do other things unrelated to your job during paid work hours.
Types of time theft when working from home can include:
Unauthorised absence: Taking multiple or extra-long breaks, starting late or finishing early without notice or permission.
Side hustle: Working on personal projects during paid work hours.
Simulating work activity: Periodically replying to emails or chat messages to appear to be working while completing personal tasks such as going to the supermarket or if an employee is renovating their house pick up supplies from a hardware store or paint a room.
The Fair Work Commission has ruled time theft constitutes serious misconduct, which can justify dismissal, however, it’s vital you still follow fair disciplinary procedures.
What should you do now?
Although the implementation of the new law has been postponed, if you're a large business (more than 15 employees), you should start preparing for the changes now so you’re ready for the implementation on 1 July 2027. Start by identifying roles that are genuinely capable (or not capable) of being performed remotely;
Small businesses have more time, but early planning will reduce future disruption.
As a business owner, you have a legal responsibility towards workplace health and safety, even for employees working remotely or from home. The expert Peninsula HR and WHS team are available 24/7 to answer your questions.
This article is for general information purposes only and does not constitute as business or legal advice and should not be relied upon as such. It does not take into consideration your specific business, industry or circumstances. You should seek legal or other professional advice regarding matters as they relate to you or your business. To the maximum extent permitted by law, Peninsula Group disclaim all liability for any errors or omissions contained in this information or any failure to update or correct this information. It is your responsibility to assess and verify the accuracy, completeness, and reliability of the information in this article.