Victoria’s leading business groups have united in opposition to the State Government’s proposed Work from Home legislation, warning the changes could create additional compliance burdens for employers at a time when many businesses are already facing significant economic pressures.
The concerns have been raised by the Victorian Congress of Employer Associations (VCEA), a coalition representing some of the state’s largest industry and employer organisations. The group is calling on the Allan Government to withdraw the proposed legislation, arguing that it risks creating uncertainty in workplaces where flexible work arrangements are already functioning effectively.
According to the VCEA, the majority of Victorian businesses have already embraced hybrid and flexible working models since the pandemic. Recent surveys conducted by the Victorian Chamber of Commerce and Industry found that around three-quarters of Victorian businesses offer some form of workplace flexibility, with many adopting arrangements that balance remote work with minimum office attendance requirements.
The proposed legislation would provide employees with additional rights regarding work-from-home requests and could see disputes referred to the Victorian Civil and Administrative Tribunal (VCAT) for resolution.
Business groups argue that the changes introduce a new layer of regulation into an area that is currently being managed through direct discussions between employers and employees.
The debate is particularly relevant for organisations operating in the meetings, events and hospitality sectors. Although overall footfall in Melbourne is back to pre-covid levels, weekday footfall by its office workers is down by at least a third according to CBRE data and media outlets such as the Herald Sun. With nearly half of the city’s office space empty on Mondays and Fridays.
The VCEA maintains that most employers support genuine workplace flexibility and recognise its role in attracting and retaining skilled staff. However, the organisation believes workplace arrangements are best managed through collaboration rather than legal processes.
The proposed legislation comes at a time when governments across Australia are continuing to assess how workplaces should operate in a post-pandemic environment. While flexible work remains a priority for many employees, employer groups are increasingly focused on maintaining productivity, supporting collaboration and providing certainty for businesses.
The Victorian Government has yet to respond to calls for the Bill to be withdrawn. However, the proposal has already sparked debate about how best to balance employee flexibility with the operational needs of businesses across the state.