Victorian workers who can do their job from home could soon have a legal right to clock in from the kitchen table — even if they work for a small business.

The Allan Government’s proposed work-from-home laws  , which could kick off as soon as September, would give eligible employees the right to work remotely two days a week, regardless of the size of their employer. That means small business staff who can do their job from home would be covered by the same rules as workers in big corporations.

The government says the move is about fairness, but small business groups warn it could mean more red tape for already stretched operators.

Same rights, no matter the boss

Under the proposal, employees who can reasonably work from home would have that right protected in law.

Victorian Premier Jacinta Allan said the changes would help families and workers balance their time and costs.

“Work from home works for families, because it saves time and money and it gets more parents working.”

“If you can work from home for a small business, you deserve the same rights as someone working for a big bank.”

“Not everyone can work from home, but everyone can benefit.”

The proposal follows a Victorian Government survey of more than 37,000 people, which found strong support for working from home, with three quarters of employees saying the right to work from home was “extremely” important to them.

Productivity or paperwork?

Industrial Relations Minister Jaclyn Symes said working from home can benefit both employees and businesses.

“Working From Home cuts costs, not productivity,” she said.

“Many workers who work from home already turn travel time into work time – saving them money and benefiting their employer.”

The government says working from home can reduce commuting time and costs, while helping more people stay in the workforce.

Small business groups push back

But the proposal has raised concerns from the Council of Small Business Organisations Australia, which says the changes could duplicate existing workplace laws and create confusion.

COSBOA CEO Skye Cappuccio said small businesses already operate under national workplace rules.

“Small business already operates under the federal Fair Work framework, which requires employers to genuinely consider reasonable requests for flexible work, including working from home.

“This proposal duplicates existing federal legislation, adds another layer of compliance, and creates further uncertainty for small business owners who are already spending almost a day each week on regulatory paperwork,” said Cappuccio.

COSBOA said a standardised approach may not work for smaller operators.

“A one-size-fits-all model simply does not reflect how small businesses operate.

“Many small businesses rely on in-person collaboration, supervision, mentoring and on-the-job training to build skills and maintain productivity. Turning work-from-home into a legally enforceable state-based entitlement, rather than a negotiated arrangement, risks undermining those dynamics,” she said.

More rules or more flexibility?

COSBOA warned that small business owners, who often handle HR issues themselves, could be left navigating disputes without clear guidance.

“In a small business, it is often the owner making these decisions personally. If there is a disagreement about what is ‘reasonable’, whether a role can be performed remotely, or how many days are appropriate, it is unclear how that would dispute would be resolved under a separate Victorian regime and who ultimately determines the outcome.

“That uncertainty alone creates risk, cost and hesitation for small employers.,” said Cappuccio.

The group said it supports flexible work but wants the government to stick with national workplace laws rather than introduce separate state rules.

“Small business supports genuine, negotiated flexibility. What we do not support is unnecessary duplication of federal law and the creation of a standalone state regime that adds confusion, compliance burden and cost,” she said.

If the laws go ahead, small business owners may need to formally assess work-from-home requests and show why arrangements can or can’t work in their workplace. For businesses where the job can’t be done remotely, such as hospitality, retail or trades, it’s unlikely to change much, but for office-based roles, working from home could shift from a perk to a legal right.

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