Victoria Work from Home Laws, A World-First Reform

Victoria Work from Home Laws, A World-First Reform

Victoria has introduced a world-first reform to recognise working from home as a legal right. From September first, eligible employees will be entitled to work remotely for up to two days per week (or pro rata for part-time staff), provided the arrangement is reasonable. It is the first legislation of its kind globally, signaling a structural shift in the understanding of modern work.

Before the pandemic, remote work was an anomaly as only 5% of Victorians worked from home on a consistent basis. Today, the landscape has changed. Victoria has become Australia’s work from home capital, with more than 64% of employees logging in from home at least once a week. What was initially a crisis response has become a highly valued behavioral norm.

Employee Impacts

While the comfort and convenience of working from home has high appeal, the deeper impacts of remote work on workforce participation, wellbeing, and equity are far more significant.

For many women, carers, and people with disabilities, remote work has been transformative. Post pandemic data from the Australian Productivity Commission shows that WFH has increased labour force participation for women with young children by 9 percentage points, and by 4.4 percentage points for people with a disability or chronic health condition.

The implications for the not-for-profit sector are even more pronounced. With 75% of the NFP workforce being female and 8.5% identifying as having a disability, Victoria’s reform will improve access, retention, and wellbeing across the sector. Evidence from the Household, Income and Labour Dynamics in Australia Survey reinforces this as respondents with a disability reported that remote work helped them feel less stressed, more productive, and better able to manage their health needs.

The reform also addresses a clear gap between employee expectations and employer decisions. Among the 36,000 Victorians who participated in the government’s consultation, 6% had been denied WFH despite requesting it, and 97% felt that refusal was unreasonable. A striking 74% described WFH as “extremely important” and a major factor in job choice, further signaling the importance of remote work flexibility.

There are financial benefits for employees too. The Victorian Government estimates that the reform could save the average worker around $5,000 per year, reflecting reduced commuting costs, lower incidental expenses, and improved work-life efficiency.

These impacts suggest that remote work is a critical lever for participation and workforce resilience across Victoria’s workforce specifically within the NFP sector.

Employer Impacts

The reforms have introduced considerable uncertainty for employers, and with implementation beginning on 1 September 2026 (or 1 July 2027 for organisations with fewer than 15 employees), preparation needs to start now. Employers will need to revise their work from home policies, particularly given the detailed criteria used to assess whether remote work is “reasonable.” These criteria span productivity, safety, supervision, customer service, confidentiality, data protection, and the specific requirements of each role.

Clear, role-specific expectations for how remote work will be performed should be embedded into updated policies to ensure consistency and compliance. In the lead-up to the reforms, employers should also prioritise individual discussions with staff to understand preferred arrangements and operational implications. Conducting an internal survey will be valuable to gauge likely uptake and identify areas where resourcing or other adjustments may be required.

Financial responsibilities must also be considered, as employers will be required to cover any “reasonable costs” associated with remote work, including hardware, software, and secure access to organisational systems. The scope of these obligations is still being finalised, making it important for organisations to define their internal position early to avoid confusion once the memorandum is confirmed.

Despite the challenges, the reforms present meaningful opportunities. Employers will be able to access broader talent pools across regional and outer-suburban Victoria, optimize office space, reduce overheads, and benefit from improved morale and retention driven by greater flexibility. Organisations that approach the transition with clear policies, proactive communication, and thoughtful planning will be best positioned to navigate the changes and realise the full benefits of Victoria’s WFH landscape.

How We Can Assist

At The Breakthrough Office, we support not-for-profit organisations to navigate reforms like this with clarity and confidence. Our team can assist you in many ways from developing or updating remote-work policies to ensure compliance, to creating tools that help you assess staff interest in WFH arrangements, to reviewing your current budget and identifying the financial implications of the new requirements. Get in touch to find out more as we’d love to partner with you.