Working from home (WFH) has become a common feature of modern employment, providing savings in both travel time and personal expenses. While previously a matter of employer discretion, the Allan Government has announced plans to legislate a right for employees to work from home for two days per week.
Key elements of the proposal:
If enacted, the legislation would
- Entitle employees to work remotely at least two days per week where their role can reasonably be performed from home.
- Apply equally across the public and private sectors.
- Establish WFH as a legal right rather than an optional arrangement.
Reported benefits of WFH:
The Victorian Government has highlighted several benefits
- Flexibility: More than one-third of workers, including 60% of professionals, already utilise WFH.
- Cost reduction: Families save an estimated $110 per week or $5,308 annually.
- Reduced commuting: Average employees reclaim over three hours per week in travel time.
- Increased participation: Enables carers, parents and people with disabilities to participate in the workforce.
- Productivity gains: Data indicates WFH employees work close to 20% more hours compared to office-based staff.
Business considerations:
Many employers reinstated full-time office attendance after the pandemic, however, industry research consistently shows that hybrid arrangements lead to higher employee engagement and productivity. A recent survey by the Australian HR Institute found that 80% of businesses expect hybrid working to remain or increase in the coming two years.
For employees, flexibility is increasingly viewed as a standard condition of employment, not a discretionary benefit. Employers who fail to adapt risk higher turnover and reduced attractiveness in the labour market.
Recommended employer actions:
To prepare, businesses should
- Review policies and contracts to ensure compliance with new obligations.
- Invest in systems and technology to support secure and efficient remote work.
- Implement clear communication practices to maintain alignment and team connection.
- Encourage boundaries around working hours to reduce fatigue.
- Measure performance by outcomes, not hours online.
If legislated, WFH will move from being a negotiated benefit to a workplace entitlement. Proactive planning will allow employers to remain compliant, preserve productivity, and position their business as an attractive employer in a competitive market.
