Victoria’s Work-From-Home Law Sparks Business Backlash, June 17

Victoria’s government introduced the Equal Opportunity Amendment (Work from Home) Bill 2026 on June 16, creating a legal right for employees to work from home two days per week starting September 1, 2026. The law applies to full-time, part-time, and casual workers on a pro rata basis. Business groups have attacked the legislation as unnecessary and economically damaging, warning it will trigger workplace disputes and push companies to relocate.

What the Law Requires

The bill amends the Equal Opportunity Act 2010 to give employees a statutory right to work from home, not just a right to request it. Full-time workers can work from home up to two days per week. Part-time and casual workers get an equivalent pro rata entitlement. Small businesses with fewer than 15 employees get until July 1, 2027 to comply. Employers can refuse only if working from home is not reasonable based on job requirements, equipment needs, client interactions, productivity, safety, supervision, training, or data protection.

Employers Warn of Legal Battles

Business groups predict the law will create a “lawyers’ picnic” as workers and employers dispute what is “reasonable.” Disputes go to the Victorian Equal Opportunity and Human Rights Commission for conciliation, then to the Victorian Civil and Administrative Tribunal if unresolved. Last financial year, the commission resolved only 42% of complaints within six months, well short of its 85% target. VCAT took eight months on average to finalise Equal Opportunity Act cases in 2024-25. Tim Piper of the Australian Industry Group called the legislation “unnecessary, burdensome, and politically motivated” ahead of the state election.

Industry Opposition Intensifies

The Housing Industry Association said the law uses anti-discrimination rules to bypass federal Fair Work laws. Keith Ryan, HIA Executive Director Victoria, warned the proposal fails to acknowledge how construction and small businesses operate. A recent HIA survey found 75% of small business members are considering scaling back, relocating, or closing due to Victoria’s regulatory burden. Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, said the law may be the “final straw” for businesses already struggling with high interest rates and red tape. A large European company has already indicated the law will influence its investment decisions in Australia.

Savings and Concerns for Workers

The government estimates the law will save employees up to AUD 5,300 per year in transport costs and commuting time. More than 3.7 million Victorians are employed, and more than one-third already work from home regularly. Employment experts warn workers to “be careful what you wish for,” noting that roles done from home can be done from anywhere, potentially moving jobs offshore. The law could create a two-tiered workforce where white-collar workers work from home while blue-collar workers cannot.

Final Thoughts

Victoria’s work-from-home law grants employees a legal right to two remote days per week but faces court challenges and business exodus warnings. Dispute resolution delays and offshore job risks create real uncertainty for workers and employers alike.

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