All Victorian Employers to Be Affected by Work-From-Home Legislation
Small employers will not be exempt from the Victorian government's proposed legislation that aims to grant workers the right to work from home two days per week.
The government plans to legislate this right as part of a key initiative in Labor’s re-election campaign. Cabinet approved the plan on Monday, with further announcements expected during the parliamentary sitting week.
On Tuesday, Premier Jacinta Allan was set to confirm that the legislation will apply to all businesses, regardless of their size.
This represents a change from Allan’s statements last year, when she suggested the government might exempt small businesses from the policy.
Government Cites Fairness in Applying Policy to All Employers
Allan explained that extensive consultations with businesses influenced the decision to include all employers under the legislation, emphasizing fairness.
She noted that while many large companies and organizations already offer flexible work arrangements, such options are less common in small businesses, which employ approximately 1.3 million Victorians.
If you can work from home for a small business, you deserve the same rights as someone working for a big bank,
Allan said.
Background on the Work-From-Home Right
Last year, the premier announced that the government would legislate the right to work from home two days a week for employees who can reasonably do so.
The legal right is intended to apply to both public and private sector workers. However, enforcement mechanisms remain unclear, as Victoria, like other states, transferred its industrial relations powers to the Commonwealth years ago.
Political Context and Opposition
The issue became politically charged during the 2025 federal election campaign, when Peter Dutton proposed restrictions on work-from-home arrangements for public servants, which generated backlash.
Business groups have opposed the legislation, arguing that work-from-home arrangements are best negotiated directly between employers and employees.
The Council of Small Business Organisations Australia (COSBOA) criticized the policy, stating it was
yet another example of the Victorian government steamrolling small business without proper consultation.
COSBOA chair Matthew Addison emphasized the importance of small businesses to Victoria’s economy, which employs millions of Victorians, and expressed concern about being sidelined in workplace policy development.
Small businesses are the backbone of Victoria’s economy, employing millions of Victorians, yet once again we’ve been completely sidelined in the development of workplace policy that will fundamentally impact how we operate,
Addison said.
The group urged the government to consider exemptions for businesses with fewer than 50 full-time employees due to potential adverse effects.
Government Highlights Benefits of Work-From-Home
Allan highlighted the positive impacts of working from home, including increased workforce participation, cost savings for families, and reduced congestion.
It saves time and money and gets more parents working,
she said.
Not everyone can work from home, but everyone can benefit.
Opposition Response
Opposition leader Jess Wilson did not provide a definitive position on the policy at a recent business event but noted the Liberal party’s longstanding support for flexible working arrangements.
I completely understand that working from home is here to stay. So if the premier wants to put forward a proposal, we will look at that,
Wilson said.
But right now it’s on the premier to bring that forward.
