The Victorian Congress of Employer Associations (VCEA) is calling on the Victorian Government to amend the Equal Opportunity Amendment (Work from Home) Bill 2026, citing concerns that it would increase compliance requirements and operating costs for businesses.
Many businesses already offer flexible working arrangements through agreements between employers and employees, rather than through legislation, according to the VCEA.
Proposed Changes
The VCEA has proposed a 10-point plan to address the bill’s impact on employers and employees, including limiting the statutory entitlement to work from home (WFH) to two days per week and delaying implementation for businesses with fewer than 200 employees.
The plan also includes expanding the grounds for refusing WFH requests and clarifying employers’ responsibilities for WFH arrangements and costs.
A survey by the Victorian Chamber of Commerce and Industry found that 77 per cent of businesses already allow employees to WFH, while 80 per cent said the bill would negatively impact business operations.
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Business Sentiment
The survey also found that 47 per cent of businesses are more likely to start, expand or invest outside Victoria, while 42 per cent are more likely to hire employees in other Australian states if the bill proceeds.
“These results should be a wake-up call for the Government,” said Victorian Chamber of Commerce and Industry CEO Sally Curtain.
Curtain said parts of the bill require further clarification, including the definition of ‘reasonable employer costs’ and the grounds on which employers may refuse WFH requests.
Uncertainty in these areas could result in more workplace disputes, she said.
The VCEA called on the Victorian Government to delay the bill’s commencement until March 1 next year or introduce a phased implementation for smaller businesses.
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Otherwise, businesses would have limited time to update policies, train managers, review workplace health and safety obligations and prepare compliance processes before the proposed September 1 commencement.
Economic Challenges
Employer groups said Victoria is facing economic challenges, with the number of employing businesses declining in 2024–25, and the state having the highest unemployment rate on mainland Australia.
Additional regulatory requirements could affect the state’s competitiveness unless changes are made to the bill, they said.
The Victorian Chamber survey found business sentiment had declined, with the proportion of businesses that believe operating in Victoria is more difficult than in other states increasing from 56 per cent last year to 72 per cent.
They urged the Government to release draft regulations and consult with business groups before finalising the framework.