This state in Australia wants to make hybrid work the law
'This will be a new standard for working life in Victoria. Working from home works for families, and it's good for the economy,' Allan told reporters. 'Workers are more productive. It's saving workers time and money.' The state government will consult with both employer and employee groups over the rest of 2025 before moving ahead with formal legislation. The proposal marks a significant shift in workplace norms as major businesses globally scale back remote work allowances. According to industry data, over half of Fortune 100 companies have ended flexible work models for desk jobs and mandated a full return to office. In Australia, many employers have also encouraged workers to return to physical offices. However, these efforts have had limited impact, especially in Melbourne, where around 20% of office space remained vacant as of January. That figure is higher than the national average and has raised concerns about urban economic slowdown, according to the Property Council of Australia. Despite the trend toward reinstating office attendance, hybrid work remains popular in Australia. Premier Allan's announcement comes ahead of the state election in November 2026. Earlier this year, Australia's federal opposition party dropped its plan to mandate office returns for government workers after facing public backlash, contributing to its election loss. 'If you can do your job from home, we'll make it your right – because we're on your side,' Allan wrote on social media, defending the move. Industry groups have pushed back. Tim Piper, head of the Victorian unit of the Australian Industry Group, said in a statement, 'The proposal is a serious government overreach that undermines business autonomy and further jeopardizes economic confidence in the state.' He added, 'It is little more than pure political theater designed to wedge the state opposition ahead of next year's election.'
Legal hurdles may also lie ahead. The Australian Financial Review reported that employment law concerning private businesses falls under the jurisdiction of the federal government. Any new state legislation on hybrid work could face challenges in the country's High Court.
Consultations on the proposed law are expected to run through the end of the year.
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