Victoria's proposed work-from-home laws have been postponed and significantly altered, with Premier Ben Carroll's government introducing amendments that increase employers' authority to deny or withdraw remote working arrangements. The legislation, initially intended to grant employees a right to work from home for at least two days a week, will now take effect on July 1, 2027. Small businesses will receive an extended exemption, with the scheme not applying to them until January 1, 2028.
Under the revised rules, employers can consider operational requirements, including whether remote work could have a 'material adverse impact' on productivity or efficiency. This new threshold offers businesses more latitude to reject employee requests compared to the previous 'significant adverse impact' standard. The government will move these amendments on Thursday. Carroll, who assumed the premiership after Jacinta Allan, has been seeking to foster a more business-friendly image for the Labor party. He withdrew the initial bill from debate shortly after taking office to allow for further discussions with employers.
The updated legislation also empowers employers to revoke existing remote work arrangements if circumstances change, a worker is no longer eligible, or the arrangement is no longer deemed reasonable. Businesses will have 28 days to respond to work-from-home requests, an increase from the previously proposed 21-day period. The revised bill also reduces costs for employers, who will be required to provide only essential hardware, software, and secure IT system access, while internet costs will remain the employee's responsibility. Workers will be prohibited from combining this new entitlement with existing work-from-home rights unless their employer consents.
Eligibility for the scheme is restricted to individuals whose primary residence is in Victoria. The amendments also clarify the application of the 40 percent work-from-home entitlement for part-time staff, which will be calculated on a pro-rata basis. A review of the legislation is now slated to occur within 18 months of its commencement, a change from the originally planned three-year review period.
Major industry groups have acknowledged Premier Carroll's engagement but stated that the amendments do not resolve what they perceive as fundamental issues with the bill. In a joint statement, these groups argued that the amendments fail to fix a 'fundamentally flawed law that will risk Victoria's economy and send jobs interstate.' They called for the bill to be abandoned, asserting that no amendment can rectify its core problems and that its passage would undermine the government's commitment to economic growth. The groups pointed to Victoria's high unemployment rate and economic performance, suggesting the legislation is ill-timed and unnecessary.
Additionally, new legal advice commissioned by the Property Council of Australia suggests the bill may be inconsistent with the Fair Work Act and potentially invalid under the Australian Constitution. This raises concerns about the government's progression of legislation that may face legal challenges. The Property Council argued that the bill's passage could jeopardize jobs, deter investment, and impose unaffordable costs on Victoria.