Daylesford has become a magnet for people who can do their jobs from home, drawn by the lifestyle of the region while staying connected to employers in Melbourne and beyond. Now the State Government has introduced legislation aimed at making that easier — though the changes carry obligations for employers as well as new rights for staff.
Under the Equal Opportunity Amendment (Work from Home) Bill 2026, introduced to Parliament in July, eligible Victorian employees who can perform their role from home will have a legal right to do so two days per week, regardless of workplace size. Part-time and casual workers will be covered on a pro-rata basis, with details to be set out in regulations. The Government argues this makes flexibility fairer, since at present larger employers are far more likely to offer it than the smaller businesses where more than 1.3 million Victorians work.
It is not an automatic right for everyone
The entitlement applies only to roles that can reasonably be performed remotely, and employers retain significant grounds to say no. Employees can ask for up to two days a week work from home. Employers then decide whether that is reasonable for their circumstances. If it is reasonable, they must accept the claim. What counts as reasonable depends on a range of factors related to the employment. These include whether the role requires regular attendance to use on-site equipment or to deal with the public, clients or customers; whether working from home would significantly reduce productivity or efficiency; whether it would significantly affect customer service or the building of relationships with clients; whether it would impose excessive financial costs on the employer; and whether it would require impractical changes to working arrangements or new hires.Â
In short, an employer with a genuine operational reason — a café, a shopfront, a trades business, or any role that depends on being physically present — is on solid ground to require attendance.
What employers will need to do
The Bill does place new duties on businesses. Employers will be required to cover reasonable costs associated with home-based work, including essential equipment such as hardware, software and secure access to the employer’s systems. Certain workers are excluded, including those on probation, as well as apprentices, trainees and interns.
Recognising the pressure on smaller operators, the laws give them more time. The right will come into effect from 1 September 2026 for most workplaces, with a delayed commencement of 1 July 2027 for workplaces with fewer than 15 employees, to allow them time to get their HR policies and procedures in order.
How disputes will be handled
If a request is refused and the worker disagrees, there is a defined process rather than an immediate confrontation. Disputes will go to the Victorian Equal Opportunity and Human Rights Commission for conciliation, and where conciliation fails, the matter can be escalated to the Victorian Civil and Administrative Tribunal for determination. Importantly, while a dispute is unresolved the employee must abide by the employer’s lawful and reasonable directions about where to work, though they may apply for an interim order to work from home in the meantime.
The case the Government makes
The Government points to its largest-ever survey of 37,485 Victorians, which found three quarters of employees rated the right to work from home as “extremely” important, and that most of those who could work from home but currently don’t had asked and been refused. It argues the change saves families money — on average around $110 a week — cuts commuting time by more than three hours a week, and supports workforce participation now running 4.4 per cent above pre-pandemic levels.
The other view
Business groups have been sharply critical. The Victorian Chamber of Commerce and Industry and other industry bodies have called on the Government to withdraw the Bill, warning it adds regulatory complexity and risk. Employers operating across several states may face a particularly complex environment, having to manage different entitlements depending on where staff are located. Some legal commentators also warn of an unintended consequence: that businesses wary of inconsistency may standardise on exactly two days as the “safest” number, hardening arrangements that were previously handled flexibly case by case. Kennedys Law LLP
These proposals have not yet been legislated and the Bill in the parliament may be amended. But for Daylesford’s growing population of home-based workers, the proposed law offers clearer protection. For local employers, the message is to start reviewing which roles genuinely can and cannot be done remotely, and to document the operational reasons where attendance is required — well before the rules take effect.
