Victoria to Mandate Two-Day WFH for Public Sector

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The Victorian government will legislate a minimum two-day-per-week work-from-home (WFH) entitlement for public sector employees starting in 2026. Premier Jacinta Allan announced the policy on August 2, 2025, stating the initiative aims to strengthen flexible working arrangements and modernise the state’s employment practices.

The policy builds on the Victorian Public Service Enterprise Agreement 2024, which was approved by the Fair Work Commission in August 2024. That agreement already encourages hybrid work models. Under the proposed legislation, Victorian Public Service (VPS) employees will have a legal right to work from home at least two days per week, unless operational requirements make it unreasonable. Each request must be assessed individually, taking into account job responsibilities, team dynamics, and personal circumstances.

The policy is supported by the Victorian Equal Opportunity and Human Rights Commission and aligns with provisions in the Equal Opportunity Act 2010 that require reasonable workplace flexibility for carers and parents. A government spokesperson said the legislation seeks to enhance employee productivity and reduce absenteeism.

While the legislation focuses on public sector roles, concerns have been raised about its broader implications. Business Victoria noted challenges for frontline sectors where remote work is not feasible, such as healthcare. Critics have also questioned the economic impact on Melbourne’s central business district, where office attendance remains below pre-pandemic levels. A 2022 Victorian Chamber of Commerce report estimated a $1 billion annual loss to the CBD economy due to fewer daily commuters.

Despite the debate, the government argues the reform will position Victoria as a national leader in workplace flexibility. A 2021 report by the Victorian Public Sector Commission found that 80% of VPS employees preferred hybrid work arrangements. The legislation is expected to be tabled in 2026 following further consultation.