The Victorian government's proposed legislation mandating work-from-home rights for employees has been effectively shelved, with the government deciding against extending the parliamentary sitting calendar to revive the stalled reforms before the upcoming November election. Premier Ben Carroll had previously committed to passing the legislation, which would guarantee employees the right to work from home at least two days per week.
The policy was initially promised by former premier Jacinta Allan in May 2025, but its introduction to Parliament was delayed until June of the following year, shortly before Allan was removed as leader. The bill has faced significant opposition from business groups and industry leaders, who argue it represents an overreach into workplace arrangements, could harm productivity, and deter investment in Victoria.
Plans to pass the legislation last week were derailed when the Legislative Council voted to send the bill to a parliamentary inquiry. This committee is scheduled to deliver its report on October 20, which falls after the parliament's final scheduled sitting day prior to the election. The only viable path to enacting the laws before polling day would have been to recall Parliament for an additional sitting week in late October, a move that Cabinet has now rejected.
This decision casts doubt on whether the signature workplace reform will ever become law. Business groups had criticized the pace of the legislation, and the Property Council cited legal advice suggesting the bill could be deemed unconstitutional by the High Court. The opposition has leveraged this setback, labeling the legislation as flawed and lacking broad support beyond union circles. Reports indicate the government may have intended to use the proposed laws to create a political divide, mirroring debates seen in the 2025 federal election.