Australia’s WFH law sparks business, legal backlash
NEW SOUTH WALES, AUSTRALIA — A push by the Victorian government to legally enshrine a right to work from home two days a week has triggered stark warnings from the business community, with a new survey revealing eight out of ten employers fear it would damage workplace culture, The Australian reports.
The Australian Chamber of Commerce and Industry has branded the plan constitutionally invalid and economically damaging, warning it could force businesses to reconsider their workforce structure and lead to a two-speed system of employees.
“WFH is already happening and there is no reason to legislate a one-size-fits-all approach or mandate a minimum number of days by which an employee can WFH,” said Andrew McKellar, ACCI Chief Executive.
Businesses fear cultural, operational damage
In a survey conducted by the Australian Chamber of Commerce and Industry among 368 business owners and senior managers, 82% said their organization would be in a bad place under such rules.
The fact that it is a unanimous majority suggests that there is some concern that mandatory remote work can hurt the spirit and cohesiveness that most employers treasure. The fear is that such degradation would not be a singular affair but would eventually affect the entire team, their dynamics, and performance.
These cultural concerns are compounded by significant operational worries, with almost 70% of surveyed businesses anticipating a decline in customer service. Furthermore, nearly half of the respondents predicted the plan would lead to higher costs and heavier administrative burdens.
McKellar emphasized, “It’s the issue of unfairness in a team if you create a two-speed system, where some employees effectively have a right created for them and others in the same organisation won’t have those same entitlements or opportunities,”
“For the team as a whole, what this survey is showing is that the negative impact – 82 per cent – outweighs the positive impact,” he added.
Legal and economic risks loom
Besides operational anxieties, business organizations are also presenting a counter argument based on legal and economic grounds, stating that the proposal is too ambitious and would jeopardize cities’ livelihoods.
The submission by ACCI to the state government is categorical that the plan is constitutionally invalid, as Victoria delegated its powers in the workplace to the Commonwealth in 1996 through the Fair Work Act.
This sets the stage for a potential legal battle, with experts questioning the state’s jurisdictional authority to implement such a law, framing it as “a solution looking for a problem” that would unravel existing workplace flexibility.
The submission also warns of deliberate damage to Melbourne’s CBD, which is still recovering from the sharp fall in office attendance since the pandemic.
The chamber argues that the government’s proposal risks repeating the economic harm experienced during the COVID-19 lockdowns by intentionally stifling the city’s ecosystem.
“The experience arising from the Covid pandemic provides ample evidence as to how important a thriving and dynamic city ecosystem is and the damage that can arise when this is disturbed,” ACCI said.
The proposal now faces a precarious future, caught between the government’s vision for worker rights and a unified business front warning of legal battles, economic harm, and an irrevocable fracture of workplace culture.
