Victorian Premier Ben Carroll is set to water down and delay Labor's work-from-home laws after sustained pushback from businesses, giving employers greater scope to reject or revoke remote-working arrangements. Amendments to be moved on Thursday will push back the proposed employee right to work from home for at least two days a week until 1 July next year, with small businesses exempted until 2028. The changes mark a significant concession from Carroll, who has sought to present Labor as more business-friendly since replacing Jacinta Allan as premier, and follow his earlier decision to withdraw the bill from debate to reopen talks with industry.

Under the revised threshold, employers can reject requests if remote work would have a "material adverse impact" on productivity, a lower bar than the previous "significant adverse impact" test, and can revoke existing arrangements if circumstances change. Businesses will get 28 days to respond to requests instead of 21, will only need to supply essential hardware and IT access rather than covering internet costs, and eligibility will be limited to Victorian residents, with part-time entitlements applied pro-rata. Despite the concessions, industry groups say the amendments do not fix what they call a fundamentally flawed bill, citing legal advice from the Property Council of Australia suggesting it is inconsistent with the Fair Work Act and could be constitutionally invalid, and are calling for the legislation to be scrapped entirely.