Major work-from-home blow for millions in Victoria as landmark bill suffers setback

The Victorian Government’s controversial working-from-home legislation appears effectively dead before the November election, after Cabinet ruled out extending the parliamentary sitting calendar to revive the stalled reforms.

Premier Ben Carroll had repeatedly pledged that legislation guaranteeing employees the right to work from home at least two days a week would pass before Victorians head to the polls. 

The policy was first promised by former premier Jacinta Allan in May 2025, but did not reach Parliament until more than a year later, in June, shortly before she was removed as leader. 

Since its introduction, the proposal has faced fierce resistance from business groups and industry leaders, who argue it would represent an unprecedented intervention in workplace arrangements, undermine productivity and deter investment in Victoria.

The government had hoped to secure passage of the legislation last week. 

However, those plans were thrown into disarray when the Legislative Council voted to refer the bill to a parliamentary inquiry.

The committee had been tasked with examining the economic and broader impacts of the reforms and is not due to report until October 20, almost a month after Parliament’s final scheduled sitting day before the election.

That timetable left the government with only one realistic path to pass the legislation before polling day: recalling Parliament for an additional sitting week in late October.

Cabinet is understood to have rejected calls to extend the parliamentary calendar, killing off any prospect of the working-from-home laws passing before the November election.

The setback leaves one of the Carroll Government’s flagship workplace reforms stranded in Parliament and casts doubt over whether the legislation will ever become law.

Business groups mounted an aggressive campaign against the bill, arguing it was being rushed through Parliament without adequate scrutiny and warning it could have significant economic consequences.

The legislation was dramatically delayed last week when the upper house voted to send it to a parliamentary inquiry. 

Among those welcoming the move was the Property Council, which said legal advice suggested the legislation could ultimately be ruled unconstitutional by the High Court.

The Coalition has consistently been against the law, arguing the proposal is fundamentally flawed and driven more by union interests than the needs of employers and workers.

Daily Mail understands Labor strategists had hoped the legislation would create a political wedge with the Coalition, reviving a workplace flexibility debate similar to the one that emerged during the 2025 federal election campaign.

Labor has signalled it will continue campaigning on the issue ahead of the election, seeking to portray Opposition Leader Jess Wilson as Victoria’s equivalent of former federal opposition leader Peter Dutton.

‘Jess Wilson has shown Victorians she’s just like Peter Dutton: anti-worker, anti-family and anti-work from home,’ Ben Carroll said in a social media post on Monday.

The Coalition has pushed back on that characterisation. 

Shadow Attorney-General James Newbury has repeatedly stressed the opposition supports flexible work arrangements, but argues decisions about working from home should be negotiated between employers and employees rather than imposed by legislation. 

‘We support work from home, and will always support work from home,’ an Opposition spokesperson said.

‘Ben Carroll promised to pass this legislation before the election, it is on him to explain why he is walking away from that commitment.’

Daily Mail contacted Jess Wilson for comment.