Victoria Expands Mandatory Work-From-Home Rights

The Victorian government has confirmed that its proposed right-to-work-from-home legislation will apply to all businesses, rejecting calls to exempt small employers and triggering backlash from industry groups.

Premier Jacinta Allan said cabinet had approved the plan, a key commitment of Labor’s re-election campaign, and confirmed that once enacted the law would cover businesses regardless of size. The proposal would give eligible employees the right to work from home two days a week if their role can reasonably be performed off-site. Allan described the universal application as a matter of fairness, noting that while larger organisations often already provide flexibility, such arrangements are less common in small businesses, which collectively employ about 1.3 million Victorians.

Business groups argue the policy risks imposing additional compliance costs. The Victorian Chamber of Commerce and Industry said the measure could create a significant regulatory burden for small- and medium-sized enterprises, many of which lack dedicated human resources teams. Acting chief executive Scott Veenker warned that some companies could consider relocating interstate or overseas if operating conditions become more difficult. The Council of Small Business Organisations Australia also criticised what it called a one-size-fits-all model, previously advocating exemptions for firms with fewer than 50 full-time employees and arguing the proposal duplicates existing federal legislation.

Supporters frame the legislation as formalising post-pandemic workplace shifts. Professor Peter Holland of Swinburne University of Technology said remote working accelerated during Covid-19 lockdowns and reflects workforce expectations. Treasurer Jaclyn Symes compared opposition to earlier resistance to workplace rights that later became standard practice.

Questions remain over enforcement, given Victoria transferred most industrial relations powers to the Commonwealth. Allan said the government had received legal advice that the proposal is constitutionally valid. She also argued the policy could lift productivity by increasing workforce participation among women, particularly new mothers.

With legislation yet to be released, the debate highlights tensions between labour flexibility and regulatory pressure at a sensitive economic juncture for Victorian businesses.