Vic WFH a negative for workplace culture: Employers

Media Release: 4 October 2025 

A survey of employers by the Australian Chamber of Commerce and Industry (ACCI) has found that four in five employers (82 per cent) believe regulated work from home (WFH) rights will have a negative impact on workplace culture.

Australia’s largest and most representative business network included the survey results in its submission to the Victorian Government’s proposed legislation to mandate employees to have the right to work from home two days a week.

The survey also found that 69 per cent of employers believe WFH rules would lead to a deterioration in customer service levels.

ACCI chief executive officer Andrew McKellar says the Victorian legislation is a solution looking for a problem.

“WFH is already happening and there is no reason to legislate a one-size-fits-all approach or mandate a minimum number of days by which an employee can WFH,” Mr McKellar said.

In the submission ACCI is of the “very strong view” that there is no ‘right’ for employees to work from home and nor should one be created.

“Decisions about WFH must ultimately be made by business as only businesses have the requisite insight into operational considerations to make such a decision,” said Mr McKellar.

The submission also raises concerns about the constitutional validity of state government legislation WFH rights as workplace relations laws fall under the Commonwealth’s Fair Work Act.

“In the case of Victoria, it legislated to refer industrial relations powers to the Commonwealth back in 1996.

“Even the Australian Human Rights Commission conceded that an employee’s rights at work is addressed by the Commonwealth.”

Other parts of the survey included in the submission revealed 44 per cent of employers would look at changing their workforce mix such as changing the ratio of full time, part time, casual or contract labour.

It also found that 43 per cent would look at changing the remuneration structure for employees who WFH.

“WFH arrangements should be subject to managerial prerogative at individual workplaces, and not a sweeping legislative imposition that adopts a ‘one size fits all’ approach,” said Mr McKellar.