UPDATE: The Victorian government has just announced a controversial plan to enshrine a legal right to work from home for employees starting in 2026. This unprecedented move is seen as a potential game-changer in the workforce, but it has already ignited fierce backlash from business groups, who argue it could drive jobs away from the state.
Premier Jacinta Allan revealed that under the proposed legislation, all public and private sector employees in Victoria would have the right to work from home for up to two days per week. As other states push for public servants to return to the office, this initiative aims to enhance flexibility, particularly for working parents.
Critics, including Tim Piper from the Australian Industry Group, have labeled the proposal as an example of “serious government overreach.” Piper emphasized that this approach undermines business autonomy and could foster divisiveness within the workforce. “It’s divisive, disruptive, and dangerous,” he stated, warning that such policies could lead to some workers enjoying benefits while others, particularly in blue-collar jobs, are left behind.
The Victorian Chamber of Commerce and Industry chief executive Paul Guerra echoed these concerns, claiming the new law could prompt businesses to relocate interstate, resulting in significant job losses. He argued that decisions regarding remote work should be made through employer-employee consultation rather than government mandates.
Premier Allan has framed the initiative as a crucial advancement for worker rights, comparable to historical milestones such as women’s increased participation in the workforce. “This is just another important, big step,” she asserted, highlighting the potential economic benefits for families and the state.
The legislation is set to be introduced before the upcoming state election in November 2026, where polls currently indicate that the Labor party, led by Allan, is on track for a fourth consecutive term. However, opposition leader Brad Battin has stated that while he supports work-life balance measures, he will closely scrutinize any proposed laws to ensure they promote flexibility and productivity.
The debate comes as recent statistics from the Australian Bureau of Statistics reveal that over one-third of Australian employees work from home, with that figure rising to 60 percent among managers and professional service staff. Additionally, 43 percent of remote workers report doing overtime, compared to just 25 percent of those who work exclusively in the office.
As the Victorian government prepares for consultations to clarify definitions and eligibility for remote work, this developing story raises critical questions about the future of work in Australia. With significant implications for both employers and employees, the outcome of this proposed legislation is one to watch closely in the coming months.
Stay tuned for further updates on this urgent issue as it unfolds.
