Why CEOs Are Fighting Against WFH Legislation in Australia

CEOs Oppose Plan to Legislate WFH

CEOs are raising concerns about workplace culture amid a push to legislate working from home (WFH) in Australia. The plan, which has received strong opposition from some of Australia's leading chief executives, aims to give employees the right to request WFH for up to two days a week.

Key Concerns from Business Leaders

According to The Australian's annual CEO survey, top business leaders expressed reservations about the proposed legislation. Ryan Stokes, CEO of SGH, stated that remote work "should not become an employee entitlement." Nick Hawkins, CEO of IAG, highlighted that it might be "difficult to cultivate culture remotely." Similarly, Andrew Irvine, CEO of NAB, emphasized that building a "strong, cohesive culture requires people to be together."

The Senate Inquiry and Greens' Plan

A Senate inquiry will be conducted on a WFH bill pushed by the Australian Greens. Under this plan, employers would be mandated to consider reasonable adjustments to accommodate WFH requests before rejecting them. However, Robert Spurway, CEO of GrainCorp, warned that government-mandated WFH requirements risk becoming "too rigid," arguing that a "one-size-fits-all approach doesn't reflect the diversity of Australia's workforce."

Hybrid Work in Australia

Hybrid work remains popular in the country, but a Robert Half poll revealed that 15% of employers plan to increase mandated in-office days in the near future. Pushback on WFH stems from leaders' concerns about productivity, with 45% of employers believing employees are more productive in the office full-time. Additionally, more than a third of employers cite improving communication (39%), strengthening company culture (37%), and enhancing in-person collaboration (35%) as key reasons for seeking full-time office attendance.

Productivity Commission Findings

Despite these concerns, a recent Productivity Commission report concluded that WFH has not contributed to the decline in Australia's productivity since the pandemic. The report stated, "There is no evidence to suggest that the trend towards hybrid working has contributed to the productivity loss phase of the productivity bubble."