Proposed Victorian law changes to work from home

What is being proposed?

The Victorian Government has flagged a draft law that would strengthen an employee’s right to request working from home. This goes beyond the current Fair Work provisions, which already allow flexible work requests in certain circumstances, such as if an employee has caring responsibilities.

Under the proposed changes:

• Any employee could formally request to work from home, not just those in specific categories.
• Employers would be required to give genuine consideration to these requests.
• If you deny a request, you may need to provide written evidence and valid business reasons.
• Disputes could be escalated to regulators if the process isn’t followed correctly.

This represents a significant shift in the balance between employer discretion and employee rights.

Why the law is being considered

The government’s aim is to reflect how modern work has changed. Remote work supports:

• Work-life balance and employee wellbeing.
• Reduced commuting, lowering stress and environmental impact.
• Higher workforce participation, particularly for parents and carers.

Employee surveys consistently show that flexibility is a top priority. Many workers now choose roles based on whether remote options are available. Legislators want to ensure fairness and clarity across industries.

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What it means for small business owners

Operational considerations

If you run a café, a gym, or a trades business, working from home isn’t practical for most roles. But if you have admin or back-office staff, they may request flexibility. You’ll need to assess each request carefully and apply consistent criteria.

Rostering and scheduling could become more complex. For example, if a key team member requests remote days, you’ll need to balance coverage for customers and suppliers.

Legal and compliance impact

Once the law passes, you’ll face new legal obligations. Denying a request without clear, documented reasoning could expose your business to disputes or even penalties.

It will no longer be enough to say “it doesn’t suit the business.” You’ll need structured policies and processes to manage requests fairly.

Technology and security requirements

Remote work requires the right systems. Secure access to accounting software, customer data, and communication tools is critical. A small business that still relies on paper records or local spreadsheets may struggle.

Investing in cloud platforms, including automated accounting and secure file sharing, will help you stay compliant and efficient.

Cultural and team dynamics

Culture matters as much as compliance. When some staff work remotely and others stay on-site, divisions can arise. Remote staff may feel disconnected, while office staff may feel they’re carrying the load.

Strong communication rhythms, regular team check-ins, and clarity on expectations will help avoid resentment or isolation.

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Potential benefits for small businesses

Handled well, these changes could bring positives:

• Access to talent: You can hire from a wider pool of candidates who value flexibility.
• Reduced overheads: With fewer staff on-site daily, you might downsize office space.
• Improved retention: Employees who feel trusted and supported are more likely to stay.

By aligning with employee expectations, you strengthen your reputation as a fair employer.

Risks and challenges to prepare for

Of course, there are challenges:

• Reduced oversight: You may feel less able to monitor productivity.
• Cost of technology: Investing in secure, flexible systems has an upfront cost.
• Difficult conversations: Saying no to a request will be harder, even when justified.
• Legal disputes: Mishandling requests could lead to claims of unfair treatment.

The biggest risk lies in being caught unprepared.

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How small business owners can prepare

Preparation is the best defence. Here are practical steps:

1. Audit roles – Work out which roles can realistically be done remotely. Document this for clarity.
2. Review contracts and policies – Update employment agreements to cover flexible work.
3. Set up systems – Move finance, HR, and customer management to secure cloud platforms. Tools like Thriday automate accounting and bookkeeping so you can manage finances from anywhere.
4. Train managers – Ensure supervisors know how to handle requests fairly and legally.
5. Create clear criteria – Outline what makes a role suitable or unsuitable for remote work.
6. Seek advice – Consider HR or legal input to ensure compliance with the new law.

Taking these steps now will protect you from risk and build trust with your team.

What to watch next

The proposals are not yet law. There will be consultation, debate, and possible amendments. Small business groups may lobby for exemptions or adjustments.

Keep an eye on:

• The timeline for when the law could pass.
• Any changes to how disputes will be managed.
• Interaction with federal Fair Work rules, which could lead to national reform.

Final thoughts

Work from home is no longer a temporary trend. If the Victorian Government’s proposal becomes law, small businesses will face new responsibilities but also new opportunities.

By preparing early, you’ll protect your business, support your team, and turn change into a competitive advantage. Flexibility is the future of work – the question is how well you get ready for it.