Working from home at least two days a week to be enshrined in law under Australian-first, divisive Vic Labor plan
The Allan government is set to pass legislation through parliament to make it a legal right for Victorians to work from home at least two days a week, with the premier claiming “everyone will benefit”.
The Allan government is set to enshrine the right to work from home into law in a move expected to both excite families and anger small business owners ahead of next year’s state election.
Premier Jacinta Allan will on Saturday announce plans to pass legislation through parliament before voters hit the polls that would make it a legally protected right for Victorians employed in the public and private sectors to work from home where possible.
Under the Australian-first legislation, workers who can reasonably do their job from home would have the legal right to do so at least two days a week.
The controversial proposal is expected to attract fierce backlash from industry bodies and Melbourne figure heads like Lord Mayor Nick Reece who have previously called for a full time return to office.
It could also pit the government against hundreds of thousands of teachers, nurses and frontline workers who can’t work from home.
But government sources said it was widely believed the policy would be a guaranteed vote winner.
During this year’s federal election campaign, Peter Dutton was forced to backflip and apologise after announcing the Coalition’s policy to restrict work from home arrangements, admitting that they had “made a mistake” amid angry backlash.
Jacinta Allan said her new policy was squarely pitched at families, with the promise of average savings of $110 a week, or $5,308 every year, by avoiding the office on a full-time basis.
“Work from home works for families and it’s good for the economy,” she said.
“Not everyone can work from home, but everyone can benefit.
“If you can do your job from home, we’ll make it your right – because we’re on your side.”
The new policy, which will be announced at the ALP state conference on Saturday, has also been driven by complaints to unions about requests to work from home being denied.
It comes just months after the Lord Mayor called on the state government to follow his council’s lead and bring public servants back into the office full time in a bid to support CBD small businesses.
“If you are a police officer, you have to turn up to your workplace, and I think it should be the same for public servants as well,” Mr Reece had said.
The Victorian public service currently has a default minimum of three days a week in the office for its employees.
But Opposition Leader Brad Battin appeared to back Labor’s plan, saying the Coalition supported workers rights to work from home.
“The Victorian Liberals and Nationals recognise that working from home has become a valuable option for many workers and families,” he said.
“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.”
Victorian Chamber of Commerce and Industry chief executive Paul Guerra called the move “perplexing” and warned it could force more businesses to flee interstate.
“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 WFH as a priority,” he said.
“If Victoria moves away from the legislated national system, businesses will move interstate and jobs will be lost.
“WFH certainly works well in some contexts, but that should be determined by the employer in consultation with the employee.”
Mr Guerra also warned of a potential drop in productivity.
“If we want businesses to be productive – and to raise the economic prospects of everyone in this state and this country – we need to get out of their way and let them operate in a way that best suits their model,” he said.
Australian Restaurant and Cafe Association (ARCA) chief executive Wes Lambert slammed the state government, arguing the proposal would only divide workplaces.
“This announcement today simply defies reality and only demonstrates the lack of understanding the current government has on how our economy works,” he said.
“We endorse and support the statements from VECCI CEO Mr Paul Guerra who correctly points out that flexible workplace arrangements already exist under the federal act and that governments should be focused on improving productivity as set out by the new federal labour government this week.”
Mr Lambert also noted that Victorian hospitality workers, like teachers, police, retail, cannot work from home.
“We are at loss to therefore understanding what this proposed legislation is supposed to achieve other than divide our workplaces and ignore the more than 80 per cent of workers that have front line jobs,” he said.
“Again we have not been given any opportunity to discuss or understand why this proposed legislation is being put forward which is very concerning.
“As with so many other issues that are currently crippling the Victorian hospitality industry we encourage the government to work with industry to ensure we get sensible and effective outcomes that can turn around the current crisis in Victorian small businesses.”
Questions have also been raised about the proposal potentially being unconstitutional in relation to EBAs that have already been signed.
However, the government is yet to flesh out the details of proposed laws.
Earlier this year the Herald Sun revealed some of Melbourne’s biggest private employers were already only requiring their staff to be in the office two days a week – less than the Victorian public service.
Major banks NAB and Westpac were among those with a quota for staff at two days per week, while PwC and the Australian Retirement Trust said they did not have mandates.
The Department of Premier and Cabinet will carry out consultation to consider which types of businesses will be covered by the scheme before introducing legislation to parliament next year.
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