World’s first work-from-home laws delayed after business outcry

The Australian state of Victoria has postponed its world-leading work-from-home laws less than a month before they were set to commence, amid significant opposition from business groups and demands for additional consultation. The proposed legislation would have granted eligible workers the right to work from home two days per week, with the measure originally scheduled to take effect on September 1.

However, the new Premier, Ben Carroll, has delayed the implementation until July 2027, as his Labor government gears up for a November election, which it faces as its most significant challenge in recent years from conservative and right-wing opponents. In a statement on August 11, Carroll emphasized his support for remote work, stating that it benefits working families and advocates for a partnership between working families, the business community, and the government.

Despite his stance, Carroll acknowledged the need to balance the economic interests of all parties involved. The Victorian Chamber of Commerce and Industry expressed concerns that the original proposal would increase costs, hinder hiring, and prompt businesses to relocate. Similarly, the Council of Small Business Organisations Australia argued that the suggested changes would impose excessive compliance requirements on small enterprises.

Melbourne, the state's capital, has faced difficulties in attracting workers back to the office following one of the longest lockdowns during the Covid-19 pandemic. The city boasts a high vacancy rate for office spaces and is home to major corporations like BHP, Rio Tinto, National Australia Bank, and ANZ Group Holdings. Additionally, Victoria carries the highest debt burden among Australian states, as reported by S&P Global Ratings, following years of substantial investments in infrastructure projects.