Following Victoria’s announcement of plans to legislate remote employment, a number of Australia’s largest companies may be required by law to allow employees to work from home two days a week, writes Financial Time. The state capital, Melbourne, one of the largest cities in the country, is home to the offices of such large employers as BHP, Rio Tinto, ANZ, Telstra, as well as the largest pension funds.
The state’s Labor government has proposed a rule that would give public and private sector workers a legally enforceable right to work remotely two days a week, provided their work permits it. The law is scheduled to take effect in September, and small businesses will be given additional time to adapt to the new requirements.
State Premier Jacinta Allan said remote working benefits families by saving time and money, and making it easier for parents to balance work and childcare. The government is expecting elections in the fall, and the implementation of the law protecting the right to remote work will be one of the key points of the election program.
The topic of remote employment has already caused political controversy at the federal level. During last year’s campaign, Australia’s opposition Liberal Party proposed ending flexible work arrangements in the public sector and requiring employees to work in the office five days a week. However, this initiative was withdrawn a month later due to negative public reaction. It remains to be seen whether Victoria’s Liberal opposition will challenge the new bill.
The government initiative comes amid calls from some executives to return employees to offices. In particular, the head of ANZ Nuno Matos said that low attendance at workplaces could affect the size of bonuses at the bank. Business representatives warn that the new rules could lead to a shift of jobs to other states and complicate the fight against low labor productivity in the country. While large companies have already largely adopted flexible work arrangements, small businesses may find the transition more challenging. Organizations with up to 15 employees will be given a deferment until July next year.
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