Premier Jacinta Allan announces legislation making working from home a legal right for eligible Victorian employees, saying “it works for families.”
What’s happening: Victoria will introduce legislation making working from home a legal right for eligible employees, guaranteeing at least two days per week for those who can reasonably perform their roles remotely, affecting both public and private sector workers.
Why this matters: With over 18,000 Victorians responding to the government’s consultation survey (its largest ever) the legislation could fundamentally reshape Australian workplace culture and set a national precedent for flexible work rights.
Australia’s workplace culture stands at a crossroads. What began as a pandemic necessity has evolved into a fundamental question about how, where, and when work happens. Victoria’s answer is unequivocal: if you can work from home, it should be your right, not a favour.
Premier Jacinta Allan’s announcement represents more than policy change – it’s a decisive intervention in a national debate that has divided employers, employees, and politicians across the country.
The proposed legislation will make Victoria the first Australian state to legally enshrine flexible work arrangements, transforming what has traditionally been a negotiated workplace benefit into a statutory entitlement.
Rights replace requests
“If you can do your job from home, we’ll make it your right – because we’re on your side,” Allan declared, framing the legislation as both economic necessity and social justice.
The proposed law establishes a minimum threshold: if employees can reasonably perform their duties remotely, they’re entitled to work from home at least two days per week, regardless of whether they’re employed in the public or private sector.
This represents a fundamental shift from the current system, where flexible work requests can be denied on “reasonable business grounds” – a framework that has left many workers vulnerable to arbitrary decisions or changing management attitudes.
Minister for Industrial Relations Jaclyn Symes emphasised the widespread adoption already occurring: “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.”
The timing reflects growing frustration with employer resistance to flexible arrangements. “Day after day, unions are being contacted by workers who have been denied reasonable requests to work from home,” the government noted, suggesting current protections are inadequate.
Australia leads the world in flexible work arrangements, with research highlighting the significant value Australians place on workplace flexibility, making Victoria’s legislative approach a natural extension of existing cultural preferences.
Numbers tell the story
The economic case for flexible work is compelling. Victorian government data shows remote workers save an average of $110 weekly, or $5,308 annually – money that returns directly to household budgets during cost-of-living pressures.
Time savings are equally significant. Victorians now spend more than three hours less per week commuting on average, representing both reduced transport costs and increased personal time.
Productivity gains challenge traditional assumptions about office-based work. “Those who work from home are working nearly 20 per cent more hours than those who are working in the office full time,” according to government figures.
Perhaps most significantly, workforce participation has increased 4.4 per cent compared to pre-pandemic levels, with flexible arrangements particularly benefiting women with children, carers, and people with disabilities.
The consultation response has been unprecedented. Allan announced on social media: “We’ve had 18,000 Victorians fill out our work from home survey – making it our biggest ever. And there’s still time to have your say on making work from home a right.”
Equity drives change
Beyond productivity and cost arguments lies a deeper equity issue that expert commentary reveals. Sabrina Scherm, customer success manager at HiBob, argues the legislation addresses structural workplace barriers that disproportionately affect certain groups.
“The reality is that rigid, office-centric policies disproportionately impact women and carers, limiting their career progression,” Scherm explained. “HiBob’s research highlights this disparity, as in 2024, men were promoted at a significantly higher rate than women — 41% compared to just 25%.”
This promotion gap reflects broader workplace dynamics where physical presence often influences career advancement opportunities, regardless of actual performance or contribution.
“Legislating flexibility helps level the playing field, ensuring elements like promotions are based on performance, not just physical presence,” Scherm noted. “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.”
The appetite for flexibility extends beyond gender lines. HiBob research shows only 33% of Australians would sacrifice flexible working arrangements for a four-day week working solely from the office, indicating workforce priorities have fundamentally shifted.
“Victoria is setting a precedent that other states should watch closely,” Scherm concluded, suggesting the legislation’s impact could extend far beyond state borders.
Business resistance emerges
Not everyone welcomes the proposed changes. Business groups have raised concerns about the practical implications of mandating flexible work arrangements across diverse industries and company sizes.
Business owners say the controversial plan could push companies to leave the state, according to industry reports, highlighting tensions between workforce expectations and employer autonomy.
Attorney-General Sonya Kilkenny acknowledged this resistance while defending the government’s position: “Many of Australia’s largest businesses have adopted work from home, but we can’t go backwards. Liberals hate work from home and they dream of abolishing it. That’s why we’ll protect in law.”
The political dimension reflects broader ideological divisions about workplace regulation and government intervention in employment relationships. Conservative parties have increasingly positioned themselves as opponents of flexible work mandates, arguing for employer discretion and traditional office-based arrangements.
This creates particular urgency for legislative action, according to government reasoning. Allan warned: “And across the country, Liberals are drawing up plans to abolish work-from-home and force workers back to the office and back to the past.”
Implementation challenges ahead
The legislation’s success depends heavily on consultation outcomes and practical implementation details. The Department of Premier and Cabinet will lead consultations focusing on several critical areas.
Key considerations include determining which types and sizes of businesses will be covered, defining remote work eligibility criteria, and establishing enforcement mechanisms. The government emphasises these consultations will focus on practical realities: “what’s fair, what’s practical, and what’s already working in many workplaces today.”
However, the consultation won’t revisit the fundamental principle. “This consultation process won’t determine whether working from home should be a right. We’re already clear on that: it should be. We just need the appropriate laws to reflect it.”
Legal experts have already flagged potential complications with state-based employment legislation intersecting with federal workplace relations frameworks, suggesting implementation may face constitutional and practical challenges.
The timeline provides limited room for extensive industry accommodation. Following consultation, the Labor Government plans to introduce and pass legislation next year, with several legislative options under consideration.
For businesses currently managing flexible work requests through existing Fair Work Commission frameworks, understanding current obligations around flexible work arrangements remains crucial while the new Victorian system develops.
The stakes extend beyond individual workplace arrangements. With workforce mobility increasing and businesses recognising the value of dispersed workforces, Victoria’s approach could influence national employment patterns and interstate business location decisions.
Allan’s declaration that “not everyone can work from home, but everyone can benefit” encapsulates the government’s broader vision – that flexible work arrangements represent not just individual workplace preferences, but fundamental economic and social policy tools.
Whether that vision translates into practical, workable legislation will determine not just Victoria’s workplace future, but potentially Australia’s approach to the post-pandemic employment landscape.
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