Victorians could soon have a legal right to work from home two days a week, under proposed Australian-first laws to be introduced to parliament by the state Labor government in 2026.
The Victorian premier, Jacinta Allan, used Labor’s state conference on Saturday to announce the proposal, which, if passed by parliament, would make the state the first in the country to legislate the right to work remotely.
Allan told party faithful if a job can “reasonably” be done from home, employees would have the legal right to do so for at least two days a week.
She said that working from home was popular, it saved families money, cut congestion and allowed greater workforce participation, particularly among women with children, carers and people with a disability.
“This isn’t about whether the work gets done, it gets done. This is about power. It’s about who gets to call the shots and who gets pushed around,” Allan said in her speech.
“We will not stand by while workers – especially women, single mums, carers – get punished for needing balance in their lives. This is about respect, this is about dignity, this is about fairness.”
The law would apply to both public and private sector workers, though it is unclear how it will be enforced, given industrial relations is the domain of the federal government.
All states except Western Australia have referred their powers to make laws for private sector workplaces to the federal government. The constitution also states that state laws that conflict with federal laws are considered invalid.
However, Allan told reporters there were “several legislative options” available to the state government, including via the Equal Opportunity Act.
She said consultation on the legislation would be led by the Department of Premier and Cabinet and would cover the types of businesses and the size of businesses that would be included, as well as the definition of remote work and who was able to do it.
“We’re going to go through a consultation process to get it right here in Victoria, and that will flesh out more of those details, but there are mechanisms that we know are available to us here in Victoria,” Allan said.
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The announcement sets the stage for a political fight in the lead-up to the November 2026 state election, given the Coalition opposition has previously signalled plans to return the public service to the office full-time.
The shadow treasurer, James Newbury, told the Herald Sun in February that the government “should be requiring public servants to work from the office” but stopped short of confirming whether the Coalition would enforce a mandate.
The issue was also a flashpoint at the recent federal election, with Peter Dutton forced mid-campaign to reverse a policy to restrict work from home arrangements for public servants due to public backlash.
Battin keeps door open amid business backlash
The state opposition leader, Brad Battin, on Saturday kept the door open to supporting the proposal.
“The Victorian Liberals and Nationals recognise that working from home has become a valuable option for many workers and families,” Battin said in a statement.
“We support measures that help Victorians enjoy a better work-life balance, and will review any legislation closely, to ensure it supports flexibility, productivity and personal choice.”
But it has sparked immediate backlash from business groups, including the Victorian Chamber of Commerce and Industry.
It has raised “major concerns”, including that it could damage productivity and teamwork, exacerbate mental health issues due to detachment from the office, and create inequity, as only a small number of people would actually be able to work from home.
The lobby group also said it could be unconstitutional, given EBAs already in place operate under federal jurisdiction.
Its chief executive, Paul Guerra, described the change as “perplexing”, given the federal government’s focus on boosting productivity.
“If Victoria moves away from the legislated national system, businesses will move interstate and jobs will be lost,” he said.
“If we want businesses to be productive – and to raise the economic prospects of everyone in this state and this country – we need to get out of their way and let them operate in a way that best suits their model.”
The Australian Industry group said the plan was “blatant political opportunism” ahead of the election.
“The proposal is a serious government overreach that undermines business autonomy and further jeopardises economic confidence in the state,” their Victorian head, Tim Piper, said.
Allan, however, said she was prepared for a “fight” with bosses over the proposal.
“There are plenty of bosses who will fight us on this – I’m absolutely sure of it. Bosses who cling to outdated ways of working because they don’t want to give up control, bosses who think being seen at a desk is more important than a parent getting home for dinner with their kids,” she said.
“They know where my government stands and if it’s a fight they want, they’ll get it.”
