RELIGIOUS schools will be able to reject teachers belonging to different faiths under Baillieu Government changes to Victoria's equal opportunity laws.

Christian schools will be able to ban single-parent teachers or others not fitting their beliefs. Jewish and Islamic schools will be able to hire only those teachers who uphold their values.

Islamic schools will also be able to make head scarfs compulsory for female students in changes that allow faith-based schools to uphold their religion through uniform and behaviour standards.

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Strict equal opportunity laws banning discrimination against teachers were initiated by the Brumby government last year and were to take effect on August 1.

But the overturning of the laws by the Coalition paves the way for religious organisations to employ only staff who share the beliefs of their communities.

The reforms will also strip Victoria's Equal Opportunity Commissioner of powers to investigate and enter workplaces.

The commission was to be handed similar powers to the Office of Police Integrity under a Labor policy.

As part of the Coalition's "operation common sense", Attorney-General Robert Clark will force the commission to get VCAT permission before compelling a person or company to hand over documents, attend a hearing or give evidence about claims of persistent discrimination in workplaces.

Mr Clark said removal of employment restrictions for faith-based schools was a commonsense measure to retain a consistent approach, where the values of teachers match those of students, parents and volunteers.

"The changes would apply the same rules to employment as to all other aspects of the organisation's activities - such as provision of services or engagement of contractors," he said.

If challenged on their grounds for rejecting a teacher, schools would have to persuade VCAT their reasons were in keeping with their wider religious beliefs.

That would mean the more extreme the school community's beliefs were, the greater their range of exemptions could be.

Independent Schools Victoria chief executive Michelle Green said she was pleased the Government was amending the legislation so parents wanting a choice for their children's education were not disadvantaged.

"We were concerned that the rights of independent schools to employ the most suitable staff would have been curtailed," she said.

"Choice in education is very important and we think it is common sense that religious schools ought to be able to choose staff they believe are the most appropriate for their school."

Originally published as Schools can bar non-believing teachers