The Victorian Government has announced plans to introduce legislation that would give eligible employees the right to work from home at least two days per week. The proposed law, expected to be introduced to parliament in 2026, would apply to both public and private sector workers whose roles can reasonably be performed remotely.
Premier Jacinta Allan has promoted the plan as a way to reduce congestion, save households money, and improve work-life balance.
However, small business advocates, including the Council of Small Business Organisations Australia (COSBOA), have raised significant concerns about the lack of industry consultation and the potential operational and financial impact on smaller employers.
Key issues raised by small business groups include:
- Limited consultation – Small business representatives say they were not involved in policy development.
- Operational challenges – Many industries, such as retail, hospitality, and manufacturing, cannot easily accommodate remote work.
- One-size-fits-all approach – The policy does not account for the diversity of business models across Victoria.
- Existing flexibility – Current federal workplace laws already allow employees to request work-from-home arrangements.
- Increased compliance risk – Employers could face added administrative and legal obligations if the proposal becomes law.
COSBOA has called on the Government to engage in proper consultation, conduct a regulatory impact assessment for small and medium-sized enterprises, and consider exemptions for businesses with fewer than 50 full-time employees.
What business owners should consider now
While this proposal is not yet law, it’s important for employers to start thinking about:
- How a mandated work-from-home policy could affect productivity, service delivery, and staffing costs.
- Whether your business can accommodate flexible arrangements without operational disruption.
- Reviewing employment contracts and policies to ensure they’re adaptable to future changes in legislation.
This proposal is still in its early stages and will undergo further discussion before any laws are passed. We’ll continue to monitor developments and provide updates so you can stay informed on potential changes that may affect Victorian workplaces.
