Flexible Work Is Becoming A Recruitment Issue. Where people work has become an important part of the employment conversation.
For many Australian workers, flexibility now influences how they assess a potential employer. For businesses, however, offering flexible work can involve questions about productivity, collaboration, management and the practical requirements of different roles. Victoria is now at the centre of that debate.
The Victorian Government is progressing legislation that would give eligible employees a stronger right to work from home for up to two days a week where it is reasonable to do so. The proposed changes are creating a wider conversation about how flexibility could influence recruitment, retention and workplace competitiveness.
Victoria Is Proposing A Stronger Right To Work From Home
The proposed Victorian legislation would establish a statutory right for eligible employees to work from home for two days each week, where reasonable. The proposal would also cover eligible part-time and regular casual employees on a pro-rata basis. However, the right would not mean every employee could automatically work from home two days a week. Employers could refuse arrangements in certain circumstances.
The legislation was passed by the Victorian Legislative Assembly on 30 July 2026 and is now being considered by the Legislative Council. The government’s proposed commencement date has also shifted. The original plan was for the arrangements to begin on 1 September 2026, while smaller businesses would have received additional time. The government has since moved towards a July 2027 implementation date. This means the framework is still developing.
The Debate Is Now About More Than Flexibility
Flexible work can provide clear benefits for employees. It may help people manage caring responsibilities, reduce commuting time and remain connected to the workforce. The Victorian Government has also linked greater flexibility with workforce participation and attracting people who may otherwise face barriers to employment.
For employers, the equation is more complex. Different roles have different operational requirements. A manufacturing technician, maintenance worker or healthcare professional may have very different flexibility options from an accountant or software developer.
As a result, the challenge is not simply deciding whether flexible work is good or bad. It is deciding where flexibility can work effectively.
Flexibility Could Influence Talent Attraction
Recruitment increasingly involves more than salary and job title. Candidates also assess an employer’s working arrangements, culture, career development opportunities and flexibility. For roles that can be performed remotely, a flexible working model could help businesses compete for talent across a wider geographic area.
This may be particularly valuable when skilled candidates are difficult to find locally. However, flexibility can also create new expectations. Once employees become accustomed to a particular working arrangement, changing it can become more difficult. Employers therefore need to consider flexible work as part of a broader workforce strategy rather than treating it as a short-term recruitment benefit.
Productivity Remains Part Of The Debate
One of the major concerns raised by business groups is productivity. Supporters of flexible work argue that employees can remain productive while working remotely. Critics have raised concerns around collaboration, supervision, workplace culture and the suitability of remote work for particular roles.
There is no single arrangement that works for every organisation. Instead, employers need to consider the type of work being performed, how teams collaborate and how performance is measured. That makes job design an increasingly important part of the flexible work discussion.
Legal Uncertainty Adds Another Layer
The debate has also moved beyond workplace policy. In early September, legal advice commissioned by the Property Council raised questions about whether parts of the proposed Victorian framework could be inconsistent with the federal Fair Work Act. If a state law is inconsistent with federal legislation, constitutional rules can affect how that law operates.
The legal position is therefore still developing. For employers, this creates uncertainty around how future flexible work obligations may interact with existing workplace arrangements.
The National Framework Is Also Evolving
Victoria is not considering flexible work in isolation. On 27 August 2026, the Fair Work Commission granted clerical workers a formal right to request working from home, although employers can still refuse requests on legitimate business grounds. That model differs from the Victorian proposal.
The national approach centres on an employee’s right to request flexibility. Victoria’s proposal would create a stronger statutory entitlement where the arrangement is considered reasonable. The difference highlights an important issue for employers operating across multiple states. Workplace flexibility may increasingly require a combination of national policies and state-specific considerations.
What Does This Mean For Recruitment?
The debate around Victoria’s proposed work-from-home laws offers employers an opportunity to rethink how they compete for talent. Businesses can start by identifying which roles can genuinely support flexible arrangements. They can also review performance measures, communication processes and team structures before introducing new policies.
Most importantly, employers should understand what their target candidates actually value. Flexibility can help attract talent, but it is only one part of a competitive employment proposition. Salary, career progression, leadership, culture and job security can all influence whether a candidate accepts a role and whether an employee chooses to stay.
Flexible Work Could Become A Competitive Advantage
Victoria’s proposed work-from-home changes are about more than where employees complete their work. They raise broader questions about how organisations design jobs, attract talent and build effective workplaces. For employers, the challenge will be finding the right balance between flexibility and operational needs. Businesses that can offer flexibility where it genuinely works may gain an advantage in attracting and retaining talent.
At the same time, organisations will need to ensure that workplace arrangements support productivity, collaboration and long-term business performance. Flexible work is becoming a bigger part of the recruitment conversation. The employers that approach it strategically may be better positioned to compete for Australia’s future workforce.