Work-from-home law delayed by Carroll weeks before planned start

Victorians will not have a legal right to work from home until at least July next year, after Labor delayed its plan to introduce the controversial law following an eleventh-hour plea from business groups.

Premier Ben Carroll announced on Tuesday that as part of his government’s “reset with the business community”, the law would not come into effect until July 1, 2027, 10 months after the original intended September start date.

“I support work from home. I support flexible work. It is good for working families,” Carroll said.

But he said the state’s economic health was important, and he wanted business to thrive in Victoria. “That is why I’ve delayed these changes,” he said.

The bill was expected to pass parliament’s upper house on Thursday, but the government will now delay its passage, although Carroll promised it would still pass before the November state election.

He said he would consult on any “commonsense amendments”.

The move to delay the legislation has been welcomed by industry and business groups, which on Monday joined forces to call for the bill to be scrapped, and warned that it risked increasing unemployment and driving investment out of the state.

Tim Piper, Victorian head of the Australian Industry Group, said businesses were still concerned the legislation was going ahead at all, but there was now at least opportunity for the government to consider amendments and improvements.

Piper said the government should use the delay to consider scrapping the bill entirely and conduct an economic impact statement on the potential fallout.

“When you have an economic impact statement, you can understand whether there’s likely to be a detrimental, whether it’s like whether it’s likely to be detrimental or not. We think it is,” Piper said.

The concession from Labor is a sign Carroll is following through on his commitment to be a more pro-business premier than predecessor Jacinta Allan.

Carroll called Piper and Victorian Chamber of Commerce and Industry chief executive Sally Curtain on Tuesday to inform them the bill would be delayed, and Piper said he’d shared “quite a few calls” with the premier’s office.

The business lobby will still push for Labor to ditch the policy altogether, though the government and the opposition have continually expressed support for the right for employees to work from home.

The Coalition under Opposition Leader Jess Wilson decided not to oppose Labor’s bill was seeking to introduce amendments to protect businesses.

Major business groups on Monday warned the proposed overhaul was another layer of red tape that would result in companies deserting Victoria and expanding their businesses interstate.

The proposed amendments include capping “reasonable costs” an employer must pay at $1000, limiting the right to employees who primarily work in Victoria and will continue to do so (unless mutually agreed to), and delaying an employee’s right to appeal a company’s decision until next year.

Business groups have not ruled out launching or joining a potential High Court challenge against the legislation if it passes. Legal experts have cast doubt over the state government’s ability to legislate a right to work from home, as most workplace laws are under the jurisdiction of the federal government.

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