"The Victorian Government's proposal to legislate mandatory work-from-home arrangements is little more than pure political theatre designed to wedge the State Opposition ahead of next year's election," the Australian Industry Group's Victorian Head Tim Piper said.
"The proposal is a serious government overreach that undermines business autonomy and further jeopardises economic confidence in the state. It is blatant political opportunism at the expense of Victorian business.
"Many businesses have been actively encouraging employees to return to the workplace full-time where they thought it was necessary, while recognising that flexibility is a component of working arrangements. Mandating work-from-home is a regressive step that runs counter to global trends and business best practice."
While businesses have embraced flexibility and remote working where appropriate, Mr Piper said that operational decisions must remain with employers.
"What works for one company may not suit another. Flexibility should be driven by the needs of individual businesses – not imposed by legislation."
Mr Piper also raised legal concerns about the proposal, questioning the Victorian Government's Constitutional authority to intervene in industrial relations – powers it ceded many years ago.
"This sends a troubling message to Victorian industry. The Government is not interested in meaningful collaboration with business," he said.
He warned that such decisions send a message and could trigger a flight of businesses away from Victoria, increasing the risk of relocation interstate or offshore.
"These policies foster an 'us versus them' dynamic, privileging some white-collar workers while leaving blue-collar employees with no choice. It's divisive, disruptive, and dangerous.
"This proposal undermines employers and reinforces the influence of the union movement over government policy. Both the concept and its execution leave a sour taste for large and small businesses alike."
Mr Piper said the Federal workplace relations system already strikes a careful balance between the interests of employers and employees when it comes to the regulation of working from home arrangements.
"The Victorian Government should leave the regulation of working from home requests to the national workplace relations laws and system. The last thing Victorian businesses need is to be saddled with a patch-work of inconsistent and unworkable obligations," he said.
"This anti-business sentiment from the Government damages confidence, discourages investment, and ultimately harms the wider Victorian community."
