The Victorian Plan

Victorian Premier Jacinta Allan has announced a proposal to make it a legal right for employees whose jobs can be done remotely to work from home at least two days a week. If passed, the legislation could come into effect by 2026 and apply to both public and private sectors.

The Business Community’s Response

The proposal has drawn heavy criticism from business leaders.

• Many say it risks undermining workplace cohesion and damaging Melbourne’s already struggling CBD economy.
• The Property Council has said it strips businesses of the ability to make operational decisions based on their unique needs.
• Some warn it could push employers to relocate interstate to avoid additional regulation.
• The Victorian Chamber of Commerce has raised concerns about legal conflicts with federal workplace laws, and about how this could impact productivity, mental health and employer flexibility.
• Retailers and hospitality operators fear a further drop in city foot traffic, which could stall post-pandemic recovery.

Why This Matters Outside Victoria

Even if you are based elsewhere, changes in one state often spark national conversations and influence workplace expectations across the country. Employees talk, industries share best practices, and media coverage shapes public opinion. If this proposal gains momentum, workers in other states may begin pushing for similar entitlements, and unions or advocacy groups could use the Victorian example to campaign for change at a federal level. Businesses operating across multiple states may face pressure to standardise their policies, which could affect workforce planning, costs, and productivity models.

Steps Employers Can Take Now

1. Review your current flexibility policies. Ensure they are fit for your business operations and can be adapted if state or federal laws change.
2. Document operational impacts of remote work. Collect evidence about productivity, client service, collaboration, and costs to help support business decisions.
3. Engage with industry bodies. Provide feedback to chambers of commerce or employer groups so your perspective is part of the policy conversation.
4. Communicate clearly with staff. Be transparent about how you balance business needs with flexibility and employee wellbeing.

This proposal highlights a growing tension between government-led workplace reform and business autonomy. If introduced, it could also create overlap or conflict with existing federal legislation, including the Fair Work Act, which already governs flexible work requests and sets minimum employment standards. Employers should watch developments closely, seek clarity on how any new state rules might interact with national laws, and be ready to adapt while protecting their operational needs.