Victoria will extend a statutory right to work from home two days a week to all employees where feasible, with no exemptions for small businesses.

The policy will apply to both public and private sectors and will be anchored in the Equal Opportunity Act to prohibit discrimination against employees who reasonably insist on remote work.

Premier Jacinta Allan and Industrial Relations Minister Jaclyn Symes say the move will boost productivity and save workers time by reducing commute.

There had been signals of a carve-out for small businesses, but officials now say there will be no exemptions.

A broad, across-the-board approach has been signaled as part of the policy rollout.

Cabinet approved the plan, with further announcements anticipated during the parliamentary sitting week as a step toward making it a re-election pillar.

The government notes small businesses employ about 1.3 million Victorians and argues the policy is fair across sectors.

Legislation will insert a new provision into the Equal Opportunity Act to ban discrimination against workers who request two days of remote work, with carve-outs only where remote work is infeasible.

Industry groups, including the Council of Small Business Organisations Australia, criticize the plan and call for exemptions or more consultation due to potential burdens on small firms.

Business groups warn about costs and urge an impact statement, noting many employers already permit remote work and suggesting negotiations be handled via enterprise agreements rather than a government mandate.

Public sentiment favors remote work, with surveys showing strong support and importance placed on flexible arrangements as the federal election looms over public servants’ office returns.

The policy has faced controversy in recent years, with mixed business and opposition reactions and ongoing debates over enforcement given Victoria’s industrial relations powers and potential federal oversight.