Employers warn of the proposed legislation's economic consequences
Employers have slammed Victoria's newly introduced legislation on working from home as "unnecessary," warning that it will have consequences for the state's economy.
The Victorian government on Tuesday introduced to Parliament a proposal seeking to enshrine the right to work from home two times a week for regular casual and part-time workers in the Equal Opportunity Act 2010.
The proposal came despite strong opposition from businesses, who slammed the legislation as "unnecessary" following its introduction.
"The legislation is unnecessary, burdensome, and will create significant uncertainty for both employers and employees," said Tim Piper, Victorian head of Australian Industry Group.
"The only reasonable conclusion is that this legislation is politically motivated ahead of the next election, rather than designed to strengthen the Victorian economy or encourage investment."
Piper further warned that the proposed requirements will not improve employment prospects in Victoria.
"Employers are already offering flexibility, but mandating work from home arrangements will cause both large and small businesses to reconsider their operations in Victoria compared to other states. We are already hearing this directly from industry," he said.
"Even today, a large European company indicated this would influence its investment decisions within Australia. That is deeply concerning for the State's economic outlook."
The 'wrong priority' for Victoria
Andrew McKellar, chief executive officer of the Australian Chamber of Commerce and Industry, issued a similar warning.
"The Victorian Government is recklessly endangering the economy with this legislation," he said.
McKellar warned that this may be the "final straw" for businesses in Victoria, who will be driven out of the state due to its "unsustainable workplace and union arrangements."
"Business confidence is already at rock-bottom, with global instability, high interest rates, and an avalanche of red tape smashing businesses, especially in Victoria," he said. "By legislating a right to work from home, the Victorian Government is kicking businesses while they are down."
Three in four Victorian businesses are already providing flexible work arrangements, with many firms operating hybrid models that include minimum office attendance, according to the Victorian Congress of Employer Associations (VCEA).
"Employers have consistently demonstrated they are willing to accommodate work from home arrangements where they make operational sense and meet the needs of both the business and its employees," VCEA said.
"At a time when businesses are grappling with increased freight costs, higher energy prices, insurance pressures and ongoing uncertainty flowing from global events, this is the wrong priority."
More workplace disputes ahead
Employers also warned of introducing further red tape and stirring additional disputes in workplaces through the reforms.
"It risks fuelling workplace disputes over eligibility, creating a divided workforce of 'haves and have-nots,' and inundating the Equal Opportunity Commission with complaints, without delivering meaningful benefits to industry," said AI Group's Piper.
Victoria's legislation proposes that disputes are referred to the Victorian Equal Opportunity and Human Rights Commission for conciliation. If this fails, the dispute goes to the Victorian Civil and Administrative Tribunal (VCAT).
"The proposed Act is a recipe for disputes and subjective decision-making, and is difficult to justify from both an economic and industrial relations perspective. Unions are likely to use it as a platform to pursue further claims and entitlements," Piper said.
VCEA called on the government to withdraw the bill from Parliament and commit to working with employers on reforms that can restore business confidence.
"Victorian businesses need certainty, stability and policies that encourage investment - not legislation that creates more confusion, more cost and more complexity at precisely the time businesses need the confidence to grow," it added.
Victoria's proposed legislation on working from home is expected to take effect on September 1, with a delayed commencement on July 1, 2027, for workplaces with fewer than 15 employees.
