"We welcome the fatal blow to Victoria's controversial Work From Home Bill announced today when the Government said it would not pursue the legislation before the next state election," said Australian Industry Group Victorian Head Tim Piper.
"This legislation had no merit and was enforcing something that would have made Victoria a less attractive place to invest.
"This is a significant victory for the Victorian business community in preventing legislation that was entirely a political play, not one designed to improve working conditions or the economy.
"Our members and our Victorian State Council have been at the forefront of opposing this Bill to ensure our members' views were heard and we pushed hard for it to be scrapped.
"The legislation would have created a legal right for eligible employees to work from home up to two days a week – it was an unnecessary government intervention in workplace arrangements.
"Working from home remains popular with many employees and we support this and workplaces are already adapting to flexible work arrangements," Mr Piper said.