The landscape of work in Victoria is on the verge of a major shift. The Victorian Government has proposed groundbreaking legislation that could legally entitle employees to work from home two days a week. This reform has already sparked national attention, raising questions about productivity, employee wellbeing, industrial relations, and the future of hybrid work across Australia.
A First for Australia
Victoria’s proposal is the first of its kind in the country. If passed, the legislation would give eligible employees the right to work from home for up to two days per week, provided their role can reasonably be performed remotely. This policy would apply to both public and private sector workers, positioning Victoria as a pioneer in modern workplace flexibility.
The Economic Case for Flexibility
The Victorian Government argues that this reform has strong economic benefits. Workers could save up to $110 per week on commuting costs and reclaim around three hours of travel time weekly. These gains not only reduce personal financial strain but also contribute to increased workforce productivity. Since the pandemic, workforce participation in Victoria has increased by 4.4 percent. The government attributes this growth in part to the accessibility of flexible work arrangements.
Supporting Equity and Inclusion
Beyond economic efficiency, the policy aims to make work more inclusive. The right to work from home could significantly boost labour participation among women with young children, carers, and workers living with disabilities. The policy supports efforts to close gender gaps in employment and improve work-life balance for underserved groups.
Legal and Industrial Challenges Ahead
Despite its intent, the proposed legislation is likely to encounter legal challenges. Employment law experts point to potential conflicts with the federal Fair Work Act, which may supersede state-based mandates. Enterprise agreements and national employment standards could limit the enforceability of Victoria’s proposal unless carefully aligned with federal frameworks.
Business Reaction and Operational Impacts
Business groups have expressed strong concerns. The Victorian Chamber of Commerce and Industry, along with the Australian Industry Group, warn that a blanket entitlement could reduce workplace cohesion, hinder culture-building, and complicate staffing logistics. Some employers have also suggested it may trigger business relocation to states without similar mandates.
Federal Response
The federal government has taken a neutral stance for now. Minister Tanya Plibersek has indicated there is no intention to block Victoria’s initiative, as long as the policy is implemented in collaboration with employers and considers operational needs. This leaves the door open for other states to observe, respond, or follow suit in due course.
A Turning Point for Hybrid Work?
Victoria’s proposal reflects broader workforce trends and expectations. Hybrid work is no longer seen as a temporary solution but a lasting feature of modern employment. As organisations prepare for the months ahead, this proposal may serve as a catalyst for businesses to revisit flexible work policies, balance employee expectations, and navigate compliance risks.
These changes could mark a defining moment in Australia’s workforce evolution. Victoria’s push to enshrine remote work rights could reshape how and where we work for years to come. While challenges remain in legal interpretation and business adaptation, the momentum behind hybrid work is growing. For employers, employees, and policymakers alike, the coming year could signal a profound transformation in the way work fits into life.
