Businesses slam plan as 'serious government overreach'
The Victorian government has unveiled a new plan to enshrine in law the right to work from home at least two days a week.
The proposed plan aims to grant employees in the state's public and private sectors the right to work from home if the job can be reasonably done from home.
"Work from home works for families and it's good for the economy," said Victoria Premier Jacinta Allan in a statement.
"If you can do your job from home, we'll make it your right – because we're on your side."
The government aims to introduce and pass the legislation next year, following consultation that will be carried out by the state's Department of Premier and Cabinet.
"We will consider the types of businesses and the size of businesses that will be covered by this scheme, as well as the definition of remote work and who is able to do it," the government said in a media release.
"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."
Benefits of working from home
The findings come as more employers, such as Amazon and the National Australia Bank (NAB), order their employees back to workplaces after years of COVID-triggered remote work arrangements.
According to the State Government, more than a third of Australian workers, including 60% of professionals, are still working from home.
Working from home allows them to save an average of $110 a week or $5,308 yearly, the government pointed out. It also frees them from more than three hours a week of sitting in traffic.
The workplace arrangement also has benefits for businesses, such as increasing workforce participation by 4.4% compared to pre-pandemic levels.
"Those who work from home are working nearly 20% more hours than those who are working in the office full time," the state government added.
Findings from the Productivity Commission earlier this year also noted that working from home has not contributed to the decline in Australia's productivity since the pandemic.
"Hybrid work (working some days remotely and some days in the office) tends to be beneficial to productivity, or at least, is not detrimental to productivity," it said.
'Serious government overreach'
But business groups have hit back at the new plan, calling it a "serious government overreach."
"The Victorian Government's proposal to legislate mandatory work-from-home arrangements is little more than pure political theatre designed to wedge the State Opposition ahead of next year's election," said Tim Piper, Victorian head of the Australian Industry Group, in a statement.
"The proposal is a serious government overreach that undermines business autonomy and further jeopardises economic confidence in the state. It is blatant political opportunism at the expense of Victorian business."
Piper said mandating work from home is a "regressive step" that deviates from global trends and business best practice.
"The Victorian Government should leave the regulation of working from home requests to the national workplace relations laws and system. The last thing Victorian businesses need is to be saddled with a patchwork of inconsistent and unworkable obligations."
Unions welcome plan
Meanwhile, the Finance Sector Union agreed employees "warmly welcome" the initiative from the Victorian government.
"This should be a wake-up call to Australian banks including the National Australia Bank whose CEO Andrew Irvine has moved to increase office attendance without consulting with his workforce and their union," said Nicole McPherson, FSU National Assistant Secretary, in a statement.
"The finance sector has the technology and types of work that make flexible working for many workers not just possible, but easy. It's time finance sector employers recognised this and worked to ensure their agreements have clear provisions to allow for workplace flexibility, including working from home."
Sabrina Scherm, customer success manager at HiBob, called the government's move a "bold step" that can help women and carers.
"While some business groups have framed this as overreach, it's really about addressing the structural barriers that still exist in traditional workplace models," Scherm said in a statement.
Previous HiBob research revealed that only 33% of Australians would give up flexible work for onsite work four days a week.
"Legislating flexibility helps level the playing field, ensuring elements like promotions are based on performance, not just physical presence," Scherm said.
"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, and retaining talent that prioritises flexibility above all."
