4 in 5 employers warn WFH mandates will damage workplace culture

While the Victorian government moves to legislate working from home as a legal right, a new survey reveals that over 80 per cent of employers believe such a move could seriously damage workplace culture.

A new survey of Australian employers has revealed strong opposition to the Victorian government’s proposed landmark legislation that would make working from home a legal right for employees.

In a study conducted by the Australian Chamber of Commerce and Industry (ACCI), it was revealed that four in five employers (82 per cent) believe regulated WFH rights could profoundly affect workplace culture.

Meanwhile, it also uncovered that 69 per cent of those surveyed believed that mandated WFH arrangements would lead to a decline in customer service levels.

The results were included in ACCI’s submission to the Victorian government, which is considering legislation to enshrine a two-day-a-week WFH right for employees across both the public and private sectors.

Premier Jacinta Allan has championed the proposed legislation – set to be introduced and passed next year – as a major win for both families and the broader economy.

“Work from home works for families, and it’s good for the economy,” Allan said.

“Not everyone can work from home, but everyone can benefit.”

“If you can do your job from home, we’ll make it your right – because we’re on your side.”

Andrew McKellar, chief executive of ACCI, argued that a mandated WFH policy is unnecessary, stressing that such decisions should be left to individual businesses to determine what works best for them.

“WFH is already happening, and there is no reason to legislate a one-size-fits-all approach or mandate a minimum number of days by which an employee can WFH,” McKellar said.

“Decisions about WFH must ultimately be made by businesses as only businesses have the requisite insight into operational considerations to make such a decision.”

In its submission to the government, the ACCI emphasised its strong stance that “there is no ‘right’ for employees to work from home and nor should one be created”.

The ACCI also raised constitutional concerns in its submission, noting that workplace relations fall under the Commonwealth’s Fair Work Act, not state legislation.

Beyond legal and operational concerns, the survey revealed that mandatory WFH could also affect business structures and workforce planning.

Nearly 44 per cent of employers said they would consider altering the mix of full-time, part-time, casual, or contract roles in response to WFH rules.

Similarly, 43 per cent indicated they might adjust remuneration structures for employees who work from home.

McKellar said: “WFH arrangements should be subject to managerial prerogative at individual workplaces, and not a sweeping legislative imposition that adopts a ‘one-size-fits-all’ approach.”