Dire warning businesses will abandon Victoria as it readies to introduce landmark WFH laws that could set a precedent for other states

Published: 12:07, 13 July 2026 | Updated: 12:13, 13 July 2026 Victoria's proposed work from home laws have been met with plenty of pushback, with employer groups warning they could drive almost half of the state's businesses across the border. The changes, introduced to parliament by Victorian Premier Jacinta Allan, would allow full-time, regular casual and part-time employees the legal right to work from the comfort of their own home for two days a week. The new laws, set to begin from September 1, will also see businesses with fewer than 15 workers included, but not until July 1 2027. However, the Victorian Chamber of Commerce and Industry (VCCI) found that it would likely push 47 percent of businesses to start, expand or invest in another state. It also revealed that hiring decisions would also be affected, with 42 percent of businesses more likely to look interstate for staff while 44 per cent would be less likely to hire employees located in Victoria. With another 47 per cent of businesses saying they would be hesitant to hire younger and less experienced workers needing more training and guidance, VCCI Chief Executive Sally Curtain deemed those findings to be a 'wake-up call for the government'. 'Last year, we warned these laws risked driving jobs and investment out of Victoria and the latest data shows those warnings are becoming more serious, not less,' she said. She also said that many employers already allowing their staff to work from home felt the changes would cause them financial and logistical issues, with close to 92 per cent also expecting extra costs, including legal advice, policy development, technology and equipment. Victoria's proposed work from home laws have been met with plenty of pushback, with employer groups warning they could drive almost half of the state's businesses across the border The new laws, set to begin from September 1, will also see businesses with less than 15 workers included, but not until July 1, 2027 'Businesses are not rejecting flexibility — 77 per cent already allow their employees to work from home,' Ms Curtain said. 'They are rejecting legislation that adds cost, complexity and uncertainty without solving a genuine problem.' Once the new laws come into effect, employers will have the right to deny working from home requests due to productivity, supervision, professional development, customer service and workplace safety reasons.  They would also have to pay any 'reasonable costs' needed for staff to do their job properly, whether it be essential equipment, software or secure access to company information systems. The warnings come after the Victorian Congress of Employer Associations (VCEA) put forward a 'ten-point plan to overhaul' the proposed laws, endorsed by 11 organisations including the VCCI. The plan includes a strict two-day maximum work from home arrangement, more grounds for employers to refuse requests and clearer employer obligations and cost responsibilities.     Ms Curtain said the legislation would fall apart without those measures.   'Instead of providing certainty, it creates legal grey areas and asks businesses to comply with obligations that are not clearly defined,' she said. The changes, introduced to parliament by Victorian Premier Jacinta Allan, would allow full time, regular casual and part time employees the legal right to work from the comfort of their own home for two days a week 'If everyone is left arguing over what 'reasonable' means, the legislation has not done its job.  'The winners will not be employees or employers — they will be employment lawyers.' Logistical concerns aside, the VCEA also called for the bill to delay until March 1 next year, with businesses with fewer than 15 staff given an extra four months to comply.  'The proposed commencement timetable is also dangerously compressed,' a VCEA spokesman said. 'This would leave employers scrambling to rewrite policies, establish new processes, assess safety obligations, understand cost liabilities, train managers and respond to employee notices under an entirely new legal regime.'