Victoria Proposes Mandatory Two-Day Work From Home for All Businesses
The Victorian state government has unveiled new legislation that would require all businesses, regardless of size, to allow employees to work from home for two days each week. Premier Jacinta Allan confirmed the proposal on Tuesday, dismissing concerns about potential High Court challenges and emphasising the benefits for workers and the economy.
Premier Defends Legislation as Constitutionally Valid
Premier Allan stated that the government has received advice confirming the constitutional validity of the proposed laws. She challenged critics who might seek legal action, asking, 'What does it say about someone who wants to race off to the High Court to strip away a worker's right to work from home?' Allan argued that remote working saves time and money for employees while being beneficial for the broader economy.
She highlighted that while many larger organisations already offer flexible arrangements, the 1.3 million Victorians employed by small businesses often lack this right. 'If you can work from home for a small business, you deserve the same rights as someone working for a big bank,' Allan asserted, aiming to close this gap through legislation.
Business Groups Voice Strong Opposition
The proposal has sparked significant backlash from business organisations, who criticise it as a 'one size fits all' model that fails to account for the operational realities of smaller enterprises. Scott Veenker, from the Victorian Chamber of Commerce and Industry, warned that the laws could impose a heavy regulatory burden, potentially forcing some small-to-medium businesses to consider relocating interstate or overseas.
'It's just another added impost. They don't necessarily have HR departments to engage with and to consult,' said Veenker, the Chamber's acting chief executive. He expressed dismay among business owners, noting that many do not understand the necessity of the measure and fear it could drive companies away from Victoria.
The Council of Small Business Organisations Australia also opposed the plan, having previously called for exemptions for businesses with fewer than 50 full-time employees. Chief executive Skye Cappuccio argued that the proposal duplicates existing federal legislation, adds compliance layers, and creates uncertainty for owners already spending nearly a day weekly on regulatory paperwork.
Details on Enforcement and Broader Reforms
It remains unclear how the legislation will be enforced, with further announcements expected during the current parliamentary sitting week. The move follows Premier Allan's initial promotion of the plan at the Labor Party's state conference in August, where she positioned it as part of broader reforms to address workplace inequality.
Allan cited research from the Centre for Economic Development of Australia, which found that employees working five days a week from home increased their productivity by 20 per cent. She also linked the reforms to efforts to close the gender pay gap, suggesting that flexible working arrangements can support greater equity.
Additionally, Allan has flagged potential amendments to the state's Equal Opportunity Act, which prohibits discrimination based on protected characteristics such as race, sex, age, disability, marital status, and religious or political belief. This indicates a wider agenda to modernise workplace laws in Victoria, though specifics are yet to be detailed.
The debate over the mandatory work-from-home policy underscores tensions between government aims for worker rights and business concerns over practicality and economic impact, setting the stage for further discussion in the coming weeks.
