Victorian businesses are warning the State Government its proposed work-from-home legislation will increase costs, damage hiring and push jobs and investment interstate.  New research reveals business concerns have escalated sharply since the policy was first announced.

New Victorian Chamber of Commerce and Industry results show that while 77 per cent of businesses already allow employees to work from home, an overwhelming 80 per cent expect the proposed legislation to negatively impact their operations.

The findings reinforce a message that Victorian businesses have delivered consistently since the policy was announced: flexibility is already widespread but legislating a one-size-fits-all right risks creating significant cost, complexity and unintended consequences.

The results represent a significant deterioration in business sentiment since the Victorian Chamber and Committee for Melbourne first surveyed employers following the Government’s September 2025 announcement.

In October 2025, 56 per cent of businesses said Victoria was harder to operate in than other states. That figure has now risen to 72 per cent.

The earlier survey found more than one third of businesses would look to expand operations and hire staff outside Victoria if WFH legislation was introduced. The latest results show 47 per cent are now more likely to start, expand or invest outside Victoria, while 42 per cent are more likely to hire staff interstate.

Additional survey results also found:

• 92 per cent anticipate additional costs from the legislation, including legal advice, policy development, technology, equipment, insurance, cyber security and compliance.
• Of businesses estimating additional annual costs, 25 per cent expect costs of $50,000 or more.

• 44 per cent say the new right would make them less likely to hire new staff based in Victoria.
• 47 per cent say it would reduce their willingness to employ younger or less experienced workers who may require greater training, supervision or mentoring.
• 72 per cent expect they will be required to provide additional work-from-home arrangements under the proposed laws.

The Victorian Chamber has opposed the legislation from the outset, arguing it is a solution looking for a problem when the overwhelming majority of businesses already provide workplace flexibility.

However, with the Bill now before Parliament, the Chamber is urging the Government to make significant amendments to reduce uncertainty, costs and unnecessary disputes.

The Victorian Chamber has developed a ten-point plan to fix the Bill, including a maximum two-day entitlement without stacking with existing arrangements, broader reasonable business grounds, clearer employer obligations and cost responsibilities, stronger workplace health and safety provisions, better protections for small business, delayed commencement for smaller employers and measures to reduce unnecessary litigation.

 Victorian Chamber of Commerce and Industry Chief Executive Sally Curtain says:  

“These results should be a wake-up call for the Government. Businesses are not rejecting flexibility – 77 per cent already allow their employees to work from home. They are rejecting legislation that adds cost, complexity and uncertainty without solving a genuine problem.

“Last year, we warned these laws risked driving jobs and investment out of Victoria. The latest data shows those warnings are becoming more serious, not less.

“Almost half of businesses surveyed are now more likely to invest outside Victoria, 42 per cent are more likely to hire outside the state and 44 per cent are less likely to hire Victorians. Those are consequences no Government should dismiss.

“The impact on young Victorians should be particularly alarming. Almost half of businesses say the proposed laws would reduce their willingness to employ younger or less experienced workers who need training, supervision and mentoring.

“The devil is in the detail – and unfortunately that is where this Bill falls apart. Instead of providing certainty, it creates legal grey areas and asks businesses to comply with obligations that are not clearly defined.

“If everyone is left arguing over what ‘reasonable’ means, the legislation has not done its job. The winners will not be employees or employers – they will be employment lawyers.

“We are asking for sensible amendments that recognise different industries, protect small businesses, clarify employer obligations and reduce unnecessary disputes.

“Victoria does not need another workplace experiment. We need practical laws that support both jobs and flexibility.”