‘Worst possible time’: Urgent call for WFH laws to be scrapped

By the Editorial Team · Monday, August 10, 2026

Victoria’s leading business groups have urged the state government to scrap its planned legislation granting employees the right to work from home two days a week, warning it could deter jobs and investment amid high unemployment. They argue the bill may harm economic recovery, put businesses at a disadvantage, and negatively impact city-dependent sectors like hospitality, while Premier Ben Carroll considers possible amendments.

Leading business and employer groups in Victoria have called on the state government to abandon its proposed work-from-home legislation, warning that the bill could drive jobs and investment away from the state amid economic challenges. The contentious bill, scheduled for debate in the upper house this week, would legally entitle employees who can work remotely to do so for two days per week.

In a joint statement, a coalition of a dozen organisations—including the Business Council of Australia (BCA), the Victorian and Australian Chambers of Commerce and Industry, and the Australian Industry Group—expressed strong opposition to the legislation. Bran Black, chief executive of the BCA, urged Premier Ben Carroll to demonstrate a commitment to partnership with business by withdrawing the bill.

“Victoria has the highest unemployment rate in the country, and this bill risks sending jobs and investment elsewhere at the worst possible time,” Black said.

Tim Piper, Victorian head of the Australian Industry Group, described the legislation as putting businesses at a competitive disadvantage. The joint statement noted the bill’s potential for "far-reaching economic consequences," adding that Victoria should prioritize attracting investment, job creation, and boosting household confidence rather than legislating mandatory work-from-home rights.

Other organisations backing the statement include the Australian Retail Council, Committee for Melbourne, Housing Industry Association Victoria, Master Builders Association of Victoria, Urban Development Institute of Australia, and the Council of Small Business Organisations Australia. The coalition argued that the bill addresses a problem that does not exist, as flexible working arrangements are already negotiated between employers and employees based on individual needs and workplace demands.

Premier Carroll has indicated a willingness to consider “sensible” amendments but maintains support for the bill introduced under the previous government led by Jacinta Allan.

The proposed legislation has also drawn concern from workers in sectors dependent on city foot traffic. Maeve Daly, a 27-year-old cafe supervisor in Melbourne’s central business district, warned the bill could harm small businesses in the hospitality sector. Daly stated that reduced customer numbers may force establishments to cut operating hours, resulting in shorter shifts and diminished job viability.

“We need life in the city, and we need businesses in the city so we can have the Melbourne we used to be,” Daly said, highlighting the importance of maintaining vibrant urban centres as Victoria adjusts to post-pandemic realities.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.