Victoria's WFH Law Faces Employer Backlash: 10-Point Plan to Delay and Overhaul

Victoria’s peak employer lobbyist, the Victorian Congress of Employer Associations (VCEA), is urgently calling on the state government to delay and overhaul its upcoming work-from-home (WFH) law before it passes parliament within weeks. The proposed legislation would give Victorians the legal right to work from home two days per week, a move businesses claim will be costly and accelerate offshore hiring.

Key Concerns:

• The VCEA warns the law is “flawed” and risks a “costly, complex and unworkable” situation if enacted by September 1.
• Proposed amendments include a hard two-day cap on WFH, delaying the bill until March, broadening grounds for refusal, and allowing employers to review or revoke arrangements.
• Businesses with fewer than 200 staff need more time to comply; the current bill only exempts those with fewer than 15 staff until July 2027.

Cost Impact:

• Data from the Victorian Chamber of Commerce and Industry reveals up to $50,000 annual cost for a quarter of businesses, with 80% expecting negative impacts.
• 92% anticipate additional costs from legal advice, policy development, technology, insurance, and cybersecurity.
• 44% of surveyed businesses said the law would make them less likely to hire new staff in Victoria.

Productivity Benefits:

• Premier Jacinta Allan highlights that the average Victorian saves $5,000 per year by working from home.
• Australia’s Productivity Commission found remote work increased job participation for women with young children by 9 percentage points and for those with disabilities by 4.4 percentage points.
• Stanford University research suggests WFH increased retention by up to a third.

The VCEA’s 10-Point Plan:

1. Cap WFH at a maximum of two days per week.
2. Amend commencement to 1 March 2027, with phased implementation for businesses under 200 employees.
3. Broaden grounds for refusal, including impacts on productivity or operational needs.
4. Strengthen employers’ ability to manage OHS obligations.
5. Allow review, pause, or revocation of arrangements due to performance issues or changing business needs.
6. Clarify the definition of reasonable employer costs.
7. Give the Equal Opportunity and Human Rights Commission powers to dismiss frivolous complaints.
8. Establish a compliance checklist for small businesses.
9. Limit the right to employees whose primary place of employment is in Victoria.
10. Clarify how pro-rata entitlement operates.

The VCEA has written to Premier Jacinta Allan urging adoption of the plan, with signatories including Master Builders Australia, the Property Council, and the Business Council of Australia.