Victorian government’s move to legislate WFH ‘pure political theatre’

Just when the flames over the working-from-home debate began to die down post-federal election, Victorian Premier Jacinta Allan has poured gasoline back on workplace discourse, proposing legislation that would grant employees – in both the public and private sector – the right to work from home at least twice a week.

The Jacinta Allan-led Labor government in Victoria announced, on Saturday, 2 August, that it would move to introduce legislation that grants employees the right to work from home.

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

“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.”

According to the Allan government, more than a third of Australian workers already regularly work from home, which saves them, on average, $110 a week or $5,308 every year.

The government believes it will cut down traffic congestion, open more opportunities for people with disabilities to work, and be good for business, with people who work from home often doing 20 per cent more hours than those who are working in the office full-time.

“Work from home saves families money, means more people are in the workforce – and it even cuts congestion,” said Minister for Industrial Relations Jaclyn Symes.

“More than a third of Australians are working from home regularly, including more than 60 per cent of professionals – and the data says they are more productive, benefiting businesses and the economy.”

Allan announced that to develop this WFH legislation, a consultation will be undertaken led by the Department of Premier and Cabinet, which will involve discussions with all types of businesses to ensure that the legislation represents “what’s fair, what’s practical, and what’s already working in many workplaces today”.

The announcement garnered rather visceral reactions from workplace stakeholders, including the Australian Industry Group’s Victorian head, Tim Piper.

“The Victorian government’s proposal to legislate mandatory work-from-home arrangements is little more than pure political theatre designed to wedge the state opposition ahead of next year’s election,” said Piper.

“The proposal is a serious government overreach that undermines business autonomy and further jeopardises economic confidence in the state. It is blatant political opportunism at the expense of Victorian business.

“Many businesses have been actively encouraging employees to return to the workplace full-time where they thought it was necessary, while recognising that flexibility is a component of working arrangements. Mandating work-from-home is a regressive step that runs counter to global trends and business best practice.”

Piper called into question the trust factor between the government and industry, claiming that a policy of this magnitude could also create friction between various sections of the workplace.

“This sends a troubling message to Victorian industry. The government is not interested in meaningful collaboration with business,” said Piper.

“These policies foster an ‘us versus them’ dynamic, privileging some white-collar workers while leaving blue-collar employees with no choice. It’s divisive, disruptive, and dangerous.

“This proposal undermines employers and reinforces the influence of the union movement over government policy. Both the concept and its execution leave a sour taste for large and small businesses alike.”

Sabrina Scherm, customer success manager at HiBob, however, labelled the Victorian government’s announcement as a “bold” step.

“As a Melbournian, it’s encouraging to see the Victorian government take this bold step towards legislating flexible work rights to modernise our work culture. While some business groups have framed this as overreach, it’s really about addressing the structural barriers that still exist in traditional workplace models,” Scherm said.

“Legislating flexibility helps level the playing field, ensuring elements like promotions are based on performance, not just physical presence. So, the proposed law isn’t just a win for families and work/life balance; it’s a smart strategy for building a more equitable and productive workforce, and retaining talent that prioritises flexibility above all.

“Victoria is setting a precedent that other states should watch closely.”