Business groups maintain pressure as Carroll pauses work-from-home laws

Victoria’s leading business and employer groups have welcomed Premier Ben Carroll’s decision to pause the state government’s controversial work-from-home legislation, but say the Bill should still be scrapped entirely.

The move follows a coordinated intervention from nine peak bodies on August 10, which called on the newly appointed Premier to use the change in leadership to reset the government’s relationship with business and abandon the Equal Opportunity Amendment (Work from Home) Bill.

Mr Carroll has since indicated the government will pause and consult further with industry on “sensible changes and improvements” to the proposal, while maintaining that Labor still intends to legislate a work-from-home right if it remains in government after the November state election.

The legislation, originally pursued under former Premier Jacinta Allan, would create a legal right for eligible Victorians to work from home two days a week where reasonable.

Business Council of Australia chief executive Bran Black said the pause was a sign that the new Premier was beginning to listen to business concerns.

“Yesterday, employers from across the Victorian economy stood together and asked the Premier to listen to business, halt this Bill and work with us to get Victoria back on track,” Mr Black said.

“Today’s announcement shows the Victorian Premier is taking the first steps towards listening to the concerns of the business community.”

However, he said the BCA’s opposition to the overall proposal had not changed.

“Whilst we welcome the deferral of the start date, we remain opposed to the overall Bill, and it should not proceed,” Mr Black said.

The BCA pointed to Victoria’s unemployment rate and broader concerns around investment and business confidence, arguing flexible work was already widely available without the need for a new state-based entitlement.

It said four in five businesses already offered flexible working arrangements.

The intervention follows months of criticism from employer groups, which had previously put forward a 10-point package of amendments if the government refused to abandon the legislation altogether.

Property Council of Australia, Victorian Executive Director, Cath Evans. 

At their August 10 press conference, Business Council of Australia executive director of advocacy Ben Wicks said the Bill risked placing a “handbrake on the economy and a handbrake on investment”.

Victorian Chamber of Commerce and Industry CEO Sally Curtain similarly described the legislation as a “poison pill for jobs”, while Council of Small Business Organisations Australia chair Matthew Addison warned of additional compliance burdens for smaller employers.

Property Council CEO Mike Zorbas directly challenged Mr Carroll to demonstrate his stated commitment to reducing red tape and improving Victoria’s relationship with business by scrapping the Bill.

Business groups have consistently argued that existing federal workplace laws already provide a framework for employers and employees to negotiate flexible work arrangements.

Mr Black said the Premier’s commitment to growing the economy and cutting red tape was welcome, but argued the proposed legislation ran counter to those ambitions.

“Delaying the Bill is a welcome first step, but our position remains clear: the legislation is unnecessary and should be scrapped,” he said.

“We look forward to having the opportunity to sit down with the Premier and discuss these issues directly and constructively.”

The pause now shifts the debate beyond the immediate parliamentary timetable and towards the November election, with the future shape of the legislation likely to remain a major point of contention between Labor and the business community.