New laws to give Victorians two days a week working from home

Victorians will have their right to work from home legally protected under new legislation going before the state parliament today.

Under the law, Victorians who can work from home will have the legal right to do so two days a week.

This will apply to regular, casual, and part-time workers.

The new laws, if passed, will come into effect on September 1, though a delayed commencement of July 1 next year will apply to workplaces with fewer than 15 employees.

The government has also pledged to release guidance on how pro-rata entitlements will work before the September kick-off date.

Disputes between employers and employees over working from home will go to the Victorian Equal Opportunity and Human Rights Commission (VEOHRC) for conciliation or to the Victorian Civil and Administrative Tribunal (VCAT).

If conciliation fails, the dispute will be heard at VCAT.

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In a release announcing the new legislation this morning, the government claimed working from home saved the state’s workers more than $5300 a year.

Government figures showed more than a third of the state’s workers, including 60 per cent of its professional workers, already regularly worked from home, saving on average $110 a week.

People working from home also saved more than three hours a week commuting on average, while the government said broader implementation of WFH allowed for more people to work.

Workforce participation around the state is now 4.4 per cent higher than before the COVID-19 pandemic shut down huge swathes of office buildings for months on end.

However, business groups are opposed to what they see as over-regulation that will place a further financial burden on small businesses.

“This is not a system that requires legislative intervention and in fact that intervention is sending a negative signal to employing businesses, with increasing reports of jobs being sent offshore,” Victorian Chamber of Commerce and Industry acting chief executive Amelia Bitsis said last month.

“What businesses are deeply concerned about is the prospect of another layer of regulation, uncertainty and potential dispute at a time when many are still dealing with ongoing cost escalation linked to the Middle East fuel crisis and broader economic weakness.”

She also warned of the possibility of a “two-tier” workforce, with many workers unable to do their jobs from home.

“Good employers understand flexibility helps attract and retain talent,” Bitsis said.

“But flexibility works best when it can be adapted to the operational realities of individual workplaces - not imposed through a rigid, one-size-fits-all legislative framework.”

The government maintains that unions receive regular reports from workers who say their reasonable WFH requests are being denied.

“Work from home works for families, it saves time and money and it gets more parents working,” Premier Jacinta Allan said.

“That’s why we’re protecting work from home in law.”