Victorian Labor to Legislate 2-Day Work-from-Home Right

The move appears to be a pitch to voters ahead of the 2026 state election.

Victorian Premier Jacinta Allan at the Melbourne West Police Station in Melbourne, Victoria, Australia on July 31, 2025. AAP Image/Joel Carrett

In a nation first, the Victorian Labor government will push to make it a legal requirement for employers to allow workers to work-from-home two days per week.

The move, announced at the state Labor conference, appears to be a pitch to voters ahead of the state election due in November 2026.

Premier Jacinta Allan took to social media on Aug. 3 to explain her policy.

“I am sure many of you are starting to think about the week ahead, maybe getting ready for work tomorrow,” she said on X, sharing that on top of work, she had been busy during the week with getting her kids’ school lunches ready, their sports and piano practice.

“I also know from listening to so many Victorians, that you’ve told me ... those who can work from home, what a difference that has made to you and your family’s lives,” she said.

Allan said working from home makes lives better, which is why the government is changing the law.

“We are doing this because we know it saves time. Less time stuck in traffic, which also means it saves money as well—money back into your family’s household budget,” she said.

Will Apply to Private and Public Sector

Under the proposed legislation, public and private sector workers will have the right to work from home if they can “reasonably” do their job from home.

The Victorian government argued that unions had been constantly contacted by workers who had been denied reasonable requests to work from home.

Consultation on the policy will be held, headed by the Department of Premier and Cabinet.

It will investigate which businesses would be covered by the scheme, and work out the definition of remote work and who it applies to.

The Labor government will introduce and aim to pass the legislation next year.

Opposition Open to Engaging on Plan

The Liberal Opposition remained open to the idea and promised to look at the legislation closely before making a decision.

“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,” Opposition Leader Brad Battin told reporters on Aug. 2.

Victorian Libertarian Party MP David Limbrick, however, raised concerns the government’s plans could lead to jobs being outsourced or replaced by artificial intelligence.

“If you can do your job from home, Labor is incentivising your boss to outsource your role to the Phillipines,” he posted to X. 

During the federal election, the Dutton-led opposition had vowed to cut work-from-home and send public servants back to the office five days a week before backflipping.

Victorian Chamber of Commerce ‘Deeply Concerned’

Meanwhile, the Victorian Chamber of Commerce and Industry expressed concern about the proposal.

“While flexibility is important, this move could have unintended consequences for our workforce and economy,” the chamber said on LinkedIn.

“Let’s support flexible work—but in a way that’s fair, productive, and constitutionally sound.”

Victorian Chamber Chief Executive Paul Guerra warned that if this went ahead, businesses would move interstate and jobs would be lost.

“At a time when the federal government is focused on boosting productivity through its Economic Reform Roundtable, it is perplexing that our state government is flagging mandated work from home as a priority,” he said.

“Work from home works well in some contexts, but that should be determined by the employer in consultation with the employee.”

However, Victorian Industrial Relations Minister Jaclyn Symes said more than one-third of Australians were working from home regularly, including more than 60 percent of professionals.

“The data says they are more productive, benefiting businesses and the economy,” she said.

“Work from home saves families money, means more people are in the workforce—and it even cuts congestion.”

Attorney General Sonya Kilkenny added, “Many of Australia’s largest businesses have adopted work from home, but we can’t go backwards.”