Plans to enshrine a right to work from home in Victorian law have stalled and may be doomed after the state Parliament voted to defer the legislation, likely until after the upcoming election.

In a surprise vote, the Victorian upper house last week referred the work from home legislation to a parliamentary committee, preventing it from being passed before the election.

The move is likely to make working from home a significant election issue, with the Labor government accusing the Opposition of being “anti-family and anti-worker”.

The Victorian government had planned to pass legislation that would make working from home a protected attribute under anti-discrimination law, alongside characteristics such as race, sexuality and gender.

Under the proposed laws, Victorian workers would be able to request to work from home two days a week where their duties can reasonably be performed remotely.

The reform was first announced by former Premier Jacinta Allan, with plans for it to apply to workers at medium and large businesses from September this year.

But after Ben Carroll became Premier, and amid sustained pressure from the business lobby, the government delayed the start of the laws until July next year.

The government nevertheless planned to pass the legislation before the November election.

Business concessions

To secure support from business, the Labor government made a series of concessions, including delaying the start date for small businesses until 2028 and limiting employers’ obligations to cover costs associated with working remotely.

The amended legislation was expected to pass the state Parliament late last week during one of its final sitting days before the election.

But a last-minute amendment to delay the bill and refer it to a parliamentary committee was passed by the Legislative Council in an 18-17 vote.

The decision means the legislation will not pass before the election unless the government recalls Parliament for additional sitting days – something it has already ruled out.

The amendment was moved by crossbench MP Jeff Bourman.

“There are a lot of employer associations that are concerned that the extra burden and extra problems that this may cause will make it harder for businesses to flourish and even harder to start,” Bourman said.

“There’s a lot of extra bureaucracy. A lot of extra time and effort … and businesses are nervous. We’re still coming out of the COVID period.”

The parliamentary committee will report back on the bill by 20 October 2026 and investigate the economic impact of the proposed reforms.

Government hits back

Victorian Greens Leader Ellen Sandell called for Parliament to be recalled so the right to work from home could still be enshrined in law.

“Workers were promised a right to work from home,” Sandell said.

“Labor delayed it, gutted it and then completely botched getting it through Parliament.

“Labor had the opportunity to pass a bill, and through sheer political incompetence and kowtowing to big corporations, they’ve now left workers with nothing.”

The decision has been welcomed by the business sector.

“The Victorian Parliament has seen sense,” Property Council Victoria executive director Cath Evans said.

“Instead of forcing rushed legislation through Parliament, it has made the right call by sending the bill to a committee to properly examine its operation, implications and legal validity.

“This decision should be the clearest signal: the Victorian government needs to be focused on the things that will actually drive growth – building more homes, creating jobs, attracting investment and restoring confidence in the state.”

Business Council of Australia chief executive Bran Black said the legislation should be abandoned altogether.

“This referral should be the final nail in the coffin for this economy-wrecking legislation,” Black said.

“The bill is not needed, it hurts jobs and adds costs to businesses at the worst time.”