UPDATE: The Victorian government has just announced a groundbreaking plan to enshrine the right for employees to work from home, a move that could reshape the future of workplace rights in Australia. Premier Jacinta Allan revealed that legislation will be introduced in 2026 to allow public and private sector workers to work from home for two days per week. This initiative is being hailed as a monumental step for worker rights, particularly benefiting working parents.
As other states push for more in-office work, this proposal aims to provide a balanced approach, offering flexibility that many workers have come to value. The law will apply to all employees in Victoria who can reasonably perform their jobs remotely. Premier Allan emphasized the significance of this change, stating it parallels historical advancements in workforce participation, particularly for women.
However, the plan has ignited fierce backlash from business groups, who warn that it could lead to job losses and push companies to relocate interstate. Tim Piper, head of the Australian Industry Group in Victoria, condemned the proposal as “serious government overreach” and “pure political theatre,” arguing it risks creating a divisive environment between different sectors of workers.
Business leaders are particularly concerned about how the legislation could disrupt the established national system and lead to job migration, saying that decisions on remote work should be made collaboratively between employers and employees. Paul Guerra, chief executive of the Victorian Chamber of Commerce and Industry, expressed fears that such a policy might exacerbate workforce inequalities.
Despite the criticism, Premier Allan insists that the legislation will enhance both the economy and family life, likening it to other significant workplace reforms. “We’ve seen many gains over generations that have supported women’s opportunity, and this is just another important step,” she stated.
The proposed changes are still in the consultation phase, with critical questions remaining about definitions of remote work, eligibility, and impacts on part-time workers. Observers are keenly awaiting how these discussions will unfold as the government prepares to move forward.
As Victoria gears up for the November 2026 state election, the Labor party, led by Allan, is reportedly on track to secure a fourth term. However, political dynamics are shifting, with opposition leader Brad Battin advocating for a balanced approach to working from home, stating, “We support measures that help Victorians enjoy a better work-life balance.”
The backdrop of this legislative push comes as the debate over remote work heats up nationally. The federal coalition’s recent attempts to end remote work for public servants were seen as a factor in their electoral defeat earlier this year. Meanwhile, NSW Premier Chris Minns has called remote work provisions a “thing of the past,” yet has not completely ruled out the option.
Current statistics reveal that more than one third of Australian employees typically work from home, with that figure reaching 60% for managers in professional services. Notably, 43% of remote workers report doing overtime, compared to only a quarter of those who work in an office setting.
As discussions evolve, stakeholders from all sides are bracing for what this legislative change could mean for the future of work in Australia. The urgency of this issue is palpable, and the implications for workers and businesses alike could be profound. Stay tuned for more developments as they unfold.
