Mandating Two Days A Week From Home: What Employers need to know about the upcoming legislation 

 

The world is evolving fast, and flexible work arrangements are at the centre of the conversation. As discussed in my recent Ticker News interview and shared across LinkedIn, Facebook and Instagram channels, the question of whether working from home two days a week should be a legal right is now being debated at the Fair Work Commission, and the Victorian Parliament mandated two days a week last week. 

 

Why is Change Happening? 

The push for stronger work-from-home (WFH) rights is a direct response to the shift in employee expectations since the pandemic. Flexibility is no longer a perk; it’s a key factor in attracting and retaining talent. However, inconsistent practices and a lack of clear guidelines have left both employers and employees uncertain about their rights and obligations. The Fair Work Commission’s current test case, brought by the ACTU and other advocacy groups, aims to clarify what counts as “reasonable business grounds” for refusing WFH requests and could set a new national standard.

 

What Could the New Laws Mean?

If the proposed legislation passes, employers may be required to offer eligible employees the right to work from home at least two days a week, unless there are clear, well-documented business reasons to refuse. Victorian legislation goes even further, requiring detailed documentation and extra protections for carers, people with disabilities, and other vulnerable groups. Businesses will need to update their policies, train leaders, and ensure compliance at both the state and federal levels.

Which Law Takes Precedent?

In Australia, Commonwealth (federal) law generally overrides state law, but if the Victorian law offers greater protections for employees, businesses should adopt the higher standard. For employers, the safest approach is to comply with whichever law benefits employees most to reduce risk and demonstrate a commitment to workplace wellbeing.

 

Does This Affect All Businesses? 

Absolutely. Whether you’re a small business with just a handful of staff or a larger organisation, these changes will apply to you. There are no exemptions for small businesses, and all employers will need to review and update their flexible work policies and practices.

 

What Should Employers Do Now? 

  • Review and update your flexible work and remote work policies.
  • Train leaders to handle requests fairly and document decisions thoroughly.
  • Keep detailed records of all flexible work requests and reasons for any refusals.
  • Monitor government updates and be ready to adapt quickly.

Final Thoughts

As I shared on Ticker News and across my social channels, the move towards mandating two days a week of remote work is making compliance harder than ever for businesses, especially those on the smaller side. Businesses should take a proactive approach, using legislative changes as an opportunity to attract and retain top talent—setting themselves up for long-term success.

Want to discuss what these changes mean to your business? Get in touch or follow Blue Kite on LinkedIn, Facebook and Instagram.

 

From December 1, 2025, Victoria joins the rest of Australia in enforcing psychological safety laws, putting workplace wellbeing front and centre for every business

 

But even before this milestone, every employer nationwide has a legal responsibility to manage psychological risks under work health and safety (WHS) laws. For small and medium businesses, this isn’t about red tape – it’s about protecting your people and your business.

 

What is Psychological Safety? 

Psychological safety means actively managing work-related risks that can harm mental or physical health. These hazards can include:

  • Excessive or unpredictable workloads
  • Unclear job roles or conflicting expectations
  • Bullying, harassment, or aggression
  • Isolated or unsupported work
  • Lack of recognition or support
  • No control over how work is done
  • Poorly managed change
  • Exposure to traumatic events or customer aggression.

 

Why Victoria’s Change Matters – And Why It’s National 

From December 2025, WorkSafe Victoria expects employers to show clear, documented efforts to manage psychosocial risks through risk assessments, staff consultation, practical controls, training, reporting, and regular review. But this approach is already in place across most of Australia. Inspectors are increasingly focusing on psychological safety, and penalties for non-compliance are steep.

 

The Risks of Ignoring Psychological Safety 

Failing to address psychosocial hazards can lead to:

  • Improvement or prohibition notices
  • Fines (up to millions for serious breaches)
  • Prosecution of directors or officers
  • Expensive, complex WorkCover claims
  • Civil claims and reputational harm.

Doing nothing is far riskier – financially and legally – than taking simple, proportionate action.

 

Spotting Hazards in Your Workplace 

Psychosocial risks rarely announce themselves. Warning signs include:

  • High turnover or absenteeism
  • Frequent complaints about workload or fairness
  • Staff showing visible stress or withdrawal
  • Unmanaged customer blow-ups
  • Confusion about roles
  • “Always on” expectations
  • Bullying or incivility
  • Change fatigue.

A short, honest conversation with your team can reveal more than any survey.

 

Practical Tips for Small Business 

You don’t need a big HR department – just some simple, repeatable steps:

  1. Talk to Your Team—And Act:
    • Regular check-ins (even 10 minutes) on workload, stress, and behaviour
    • Listen, spot themes, and make at least one visible change.
  1. Know Your Top 3–5 Risks:
    • Use existing info (incidents, feedback, complaints) to identify main hazards.
  1. Put in Proportionate Controls:
    • Set limits on workload, clarify roles, define acceptable behaviour, and introduce practical supports.
  1. Support Your Supervisors:
    • Brief managers on spotting risks and having supportive conversations.
  1. Make Reporting Simple:
    • Clear ways to raise concerns, protect privacy, and follow up.

 

The Benefits of Getting This Right

Managing psychological safety well means:

  • Lower turnover and absenteeism
  • Reduced insurance and claim costs
  • Better customer service
  • Stronger reputation
  • Healthier, more engaged employees

Victoria’s new law is a reminder: psychological safety isn’t a “nice to have” – it’s an essential business practice. Protect your people, protect your livelihood, and make psychological safety business as usual.

 

To learn more about how Blue Kite can help to make your business psychologically safe, get in touch with Catie Paterson Blue Kite  today.