Victorian Businesses Argue Work From Home Legislation Is Not Needed

Victorian business groups have sounded a warning on the state government’s work-from-home legislation, promising two days a week at home ahead.

The majority of businesses in the state are already providing flexible working, meaning there is no problem that requires fixing, the Victorian Chamber of Commerce and Committee and Industry (VCCI) for Melbourne argue.

“Victorian businesses have delivered a clear and united message to the State Government: legislating a mandatory right to work from home (WFH) is unnecessary, damaging, and out of step with workplace reality,”  the VCCI and Committee for Melbourne said.

Melbourne’s Remote Work Entitlement Survey found 76 percent of businesses already offer flexible work arrangements, including the option to work from home.

At the same time, 77 percent of businesses demand a minimum level of in-office attendance, usually three days per week.

The survey also found that 63 percent of businesses have a formal work-from-home policy, while 19 percent already allow staff to work remotely up to three days a week.

Sixty-two percent of businesses surveyed said they oppose the government’s plan to legislate a two-day minimum, while only 30 percent expressed support.

“The Victorian Chamber and Committee for Melbourne urge the government to listen to business and focus on policies that reduce costs and strengthen competitiveness rather than creating unnecessary obligations that harm productivity and the next generation of workers,” the VCCI and Committee for Melbourne said.

Concerns were also raised that young Victorians could be impacted due to lack of professional growth opportunities including networking.

“The survey found the greatest losers from enshrined WFH rights would be young Victorians, who risk missing out on vital professional development opportunities including mentoring, networking and informal learning,”

Harder to do Business in Victoria Compared to Other States

The results showed 56 percent of Victorian businesses believe it is harder to do business in Victoria compared to other states.

Reasons for this include regulatory burdens, high taxes, and increasing costs.

If the Work from Home legislation goes ahead, more than one-third of businesses could hire staff outside the state.

VCCI Chief Executive Sally Curtain said the results send a resounding message to government.

“Business is already delivering flexible arrangements with their employees—there is no problem that needs fixing. In other words, “We’ve got this,'” she said.

“Business is providing flexibility because it makes sense for staff wellbeing, productivity and retention—but there is no one-size-fits-all approach.”

Curtain argued the legislation was not necessary.

“Legislating this is a waste. And worse it will harm young people, deplete Victoria’s competitiveness and unnecessarily add cost and red-tape,” she said.

“Mandating remote work would entrench barriers for young people at the start of their careers. Instead of boosting opportunities, it will limit career progression, social connection and long-term earning potential.”

Meanwhile, Committee for Melbourne Chief Executive Scott Veenker argued Melbourne was already at a disadvantage compared to other states in business competitiveness.

“Rather than adding more red tape, the Government’s focus should be on creating the conditions that attract investment, encourage enterprise and underpin a thriving economy in our global city,” Veenker said.

Victorian Government Defend Work From Home

The Victorian Labor government said 74 percent of employees from a recent survey believe working from home is “extremely important.”

A consultation on the work from home legislation received a record 36,770 responses.

The government said more than 3,200 people—about 9 percent of responses—didn’t feel they could ask their current employer to work from home.

More than 13,300 respondents—36 percent of responses—said a one way trip to work takes longer than an hour.

“The biggest-ever Victorian Government survey says work from home works for families and it’s good for the economy,” Victorian Premier Jacinta Allan said.

Acting Industrial Relations Minister Harriet Shing said a record number of Victorians had told the government how they felt about working from home.

“And we’re listening. We’ll use this data and consultation with industry to help us shape working from home laws that are fair and practical for everyone.”