Victorian businesses are warning that proposed legislation enshrining a right to work from home could lead nearly half of the state's companies to relocate or expand elsewhere. The laws, introduced to the Victorian parliament, aim to grant full-time, regular casual, and part-time employees the legal right to work remotely for two days per week. The changes are slated to take effect on September 1, with businesses employing fewer than 15 workers included from July 1, 2027.
A report by the Victorian Chamber of Commerce and Industry (VCCI) indicates that 47 percent of businesses would likely start, expand, or invest in another state if the laws pass as proposed. Furthermore, 42 percent of businesses reported they would be more inclined to seek staff interstate, while 44 percent said they would be less likely to hire employees located in Victoria. The VCCI also found that 47 percent of businesses would be hesitant to hire younger, less experienced workers who require additional training and supervision.
Sally Curtain, Chief Executive of the VCCI, described these findings as a "wake-up call for the government." She stated that "last year, we warned these laws risked driving jobs and investment out of Victoria and the latest data shows those warnings are becoming more serious, not less."
Many employers already offering flexible work arrangements expressed concerns about potential financial and logistical burdens. Approximately 92 percent of businesses anticipate increased costs related to legal advice, policy development, technology, and equipment. "Businesses are not rejecting flexibility — 77 percent already allow their employees to work from home," Curtain said. "They are rejecting legislation that adds cost, complexity and uncertainty without solving a genuine problem."
Under the proposed laws, employers retain the right to refuse work-from-home requests based on reasons such as productivity, supervision needs, professional development, customer service requirements, and workplace safety. However, they would also be obligated to cover any "reasonable costs" associated with employees working remotely, including essential equipment, software, and secure access to company systems.
In response to the proposed legislation, the Victorian Congress of Employer Associations (VCEA), along with 11 other organizations including the VCCI, has put forward a "ten-point plan to overhaul" the bill. Key proposals include a strict two-day maximum for remote work, expanded grounds for employers to reject requests, and clearer definitions of employer obligations and cost responsibilities.
"Instead of providing certainty, it creates legal grey areas and asks businesses to comply with obligations that are not clearly defined," Curtain stated. "If everyone is left arguing over what 'reasonable' means, the legislation has not done its job. The winners will not be employees or employers — they will be employment lawyers."
The VCEA also called for a delayed implementation, suggesting the bill take effect on March 1 of the following year. Businesses with fewer than 15 employees would receive an additional four months to comply. "The proposed commencement timetable is also dangerously compressed," a VCEA spokesman commented. "This would leave employers scrambling to rewrite policies, establish new processes, assess safety obligations, understand cost liabilities, train managers and respond to employee notices under an entirely new legal regime."