New Victorian Premier Ben Carroll has delayed the introduction of controversial work-from-home laws until after the upcoming state election following significant pressure from business groups.

The Victorian Parliament was set to debate the legislation this week, which would give eligible workers the legal right to work from home (WFH) at least two days a week.

The right was originally due to take effect for workers at large businesses from September this year, followed by smaller businesses from July next year.

But since becoming Premier just two weeks ago, Carroll has faced renewed calls from business organisations to significantly amend or scrap the reforms.

On Tuesday morning, he announced the start date would be pushed back by 10 months to July next year, after the November state election.

“I want to be very clear: I support work from home. I support flexible work,” Carroll told the media on Tuesday morning.

“It is good for working families. My door will always be open to the business community. I want Victoria to be open to business. I want it to be thriving.

“That’s why I’ve delayed these changes and why I will continue to work with the business community to make sure this policy is right.”

The legislation has also been removed from the Parliament’s notice paper for this week, although Carroll has pledged to pass it before the election.

He said he was open to “commonsense amendments” when the bill eventually returns to Parliament.

‘Back to the Stone Age’

The delay comes after Property Council of Australia CEO Mike Zorbas earlier this week said the reforms would “bomb business back into the Stone Age”.

The WFH bill was first announced by former Premier Jacinta Allan in August last year and introduced to Parliament in June.

It would enshrine a right to work from home for at least two days a week for employees whose roles can be performed remotely, by incorporating the right into the Equal Opportunity Act.

The reforms were originally scheduled to apply to workers at large businesses from September this year and smaller businesses from July next year.

More than a third of Australian workers are estimated to already work from home, with the figure rising to as much as 60 per cent among professionals.

Under current federal workplace laws, employees whose requests for flexible work are rejected can challenge the decision at the Fair Work Commission.

Requests must be considered individually, rather than being rejected under blanket policies, and employers must have reasonable grounds to refuse them.

The Fair Work Commission has ruled on several cases this year involving workers either being forced to return to the office under a mandate or having their request to work from home denied.

Potential amendments

Under the Victorian proposal, disputes over work-from-home requests would be handled by the Victorian Equal Opportunity and Human Rights Commission or the Victorian Civil and Administrative Tribunal.

The legislation would also require the employer to pay any “reasonable costs” associated with the employee working from home, including essential equipment and secure access to information systems.

The WFH bill was expected to pass Parliament if it had been put to a vote, with the Opposition choosing to seek amendments rather than oppose it outright.

Proposed Opposition amendments include capping employer payments for reasonable costs at $1,000, limiting the right to employees who primarily work in Victoria and will continue to do so, and delaying the right to appeal an employer’s decision until next year.