Victoria Passes World-First Law Giving Workers Two WFH Days a Week

Premier Jacinta Allan confirmed on Wednesday that Victoria's work-from-home legislation will take effect on September 1, 2026. The law gives any Victorian employee whose role can reasonably be performed remotely a legal right to work from home at least two days per week.

"Work from home works for families. It saves time and money and it gets more parents working," Allan said. "Only Labor has new solutions to make life easier, safer and more affordable."

Industrial Relations Minister Jaclyn Symes said the law means "no boss or Liberal can take it away from our workers." The government will introduce the bill to the Victorian Parliament in July.

How the law works

Victoria's approach creates a presumed right rather than a request mechanism. Under the federal Fair Work Act, employees must apply for flexible work and meet qualifying criteria such as being a carer or parent. Victoria's law covers all employees whose roles can reasonably be done remotely, regardless of personal circumstances.

Employers who want to refuse must demonstrate the role requires physical presence. Preferring in-office attendance is not enough. Disputes go to the Victorian Equal Opportunity and Human Rights Commission for conciliation. Unresolved cases proceed to VCAT.

Premier Allan chose the Equal Opportunity Act rather than industrial relations legislation, which Canberra controls under the Fair Work Act. The WFH right now sits alongside protections against discrimination on the basis of race, sex, disability, and age.

Small business timeline

Jacinta Allan ruled out a small business exemption entirely. Businesses with 15 or more employees must comply from September 1, 2026. Smaller workplaces with fewer than 15 employees get until July 1, 2027. "If you can work from home for a small business, you deserve the same rights as someone working for a big bank," Allan told reporters.

Engage Victoria ran consultation from August 2025, with industry roundtables through September. Victorian Chamber of Commerce and Industry pushed for broader exemptions and longer transition periods. They did not get them.

The Westpac ruling that changed the calculus

Tom Roberts, Fair Work Deputy President, ruled in October 2025 that Westpac could not force a Sydney mortgage team worker back to the office when her role could be "performed completely remotely." Roberts found her deadlines were "met or exceeded" while working from home and that "a loss of productivity or efficiency or a negative impact on customer service hasn't materialised."

The Westpac decision was not isolated. In Kent Aoyama v FLSA Holdings, Fair Work found the employer "had not provided compelling proof" of material impact. In Anthony May v Paper Australia, the refusal was found "not based on reasonable business grounds." Three rulings in quick succession sent the same message: blanket return-to-office mandates without evidence won't survive legal challenge.

Economic impact

The Victorian government says WFH saves workers $110 per week on average, or $5,308 annually, through reduced commuting costs. Workforce participation is 4.4 per cent higher than pre-pandemic levels. More than a third of all workers and 60 per cent of professionals regularly work from home.

Bloomberg and the Japan Times reported this week that Melbourne small businesses fear the law will further hollow out CBD foot traffic. Cafe and retail operators in the central city have already lost trade from reduced weekday office attendance since 2020.

Victorians are now saving more than three hours a week on average commuting.

— Victorian Government, March 2026

The bigger picture

The Australian Services Union has separately applied to Fair Work to insert a WFH term into the Clerks Private Sector Award, which covers 1.8 million clerical and administrative workers. If granted, employers would need to give 26 weeks' notice before enforcing a return to office. Three-quarters of workers under that award are women.

Victoria's legislation and the ASU application run on parallel tracks. One is state law. One is a federal award variation. Both point the same direction: the legal default on remote work in Australia is shifting from employer discretion to employee right.