Victoria WFH laws: Nearly Half of Victorian Businesses Plan to Take Jobs Offshore in Response to WFH Rules

Victoria WFH laws: Nearly half of Victorian employers plan to increase offshore hiring in response to the state government's new work-from-home laws, as business leaders warn that enshrining the right to work remotely could accelerate the offshoring of Australian white-collar jobs. The Silicon Review examines the unintended consequences of a policy designed to protect workers.

Victoria WFH laws: Victorian workers are about to get a legal right to work from home. But they might also be handing their jobs to someone in Manila, Mumbai, or Kuala Lumpur.

New data from global payroll company Remote reveals that 43 per cent of Victorian businesses will increase offshore hiring if the state government's new WFH laws are mandated as minimum requirements. Another 47 per cent said they will shift toward contractors rather than permanent staff to reduce regulatory complexity.

The laws, set to come into effect on September 1, will give regular, casual, and part-time employees in Victoria who can work from home the legal right to do so two days a week. Businesses with fewer than 15 employees have a delayed commencement until July 1, 2027.

But the backlash from the business community is fierce. And the data suggests workers may be celebrating a pyrrhic victory.

"If a role can be done permanently from home, employers will inevitably ask whether it can also be done from Manila, Mumbai or Kuala Lumpur. That is the commercial reality, “warned Sarah Donegan, managing director of recruiter Samuels Donegan. Employees may think they are winning a right to work from home, but they may also be helping prove the job no longer needs to be in Australia at all. Be careful what you wish for."

The Remote data also found that nearly half of Australians say they would need to make serious lifestyle cutbacks or struggle to afford essentials if their pay stagnated over the next 12 months. If jobs are taken offshore, the already competitive local job market becomes even more cutthroat.

Offshore workers and contractors are cheaper and more flexible, which is attractive to employers already grappling with rising costs. Nick Martin, APAC GTM lead at Remote told the new WFH rules will contribute to a broader landscape where organisations face "rising costs, higher compliance load, and shifting workforce expectations."

Victorian Chamber of Commerce and Industry acting chief executive Amelia Bitsis warned the legislation was "sending a negative signal to employing businesses" and that flexibility "works best when it can be adapted to the operational realities of individual workplaces not imposed through a rigid, one-size-fits-all legislative framework."

Legal experts say employers can make an employee redundant if the job is no longer required at all but they must prove the job is genuinely no longer needed and not simply relocated to a contractor or offshore equivalent.

Here is the question this data raises. A policy designed to protect workers' flexibility may actually be giving employers the perfect excuse to prove those jobs don't need to be in Australia at all. When Victorians celebrate their right to work from home, are they celebrating a win or signing their own redundancy notices?

As nearly half of Victorian businesses plan to take jobs offshore in response to WFH rules, The Silicon Review asks a final question. When a government gives workers a right that makes them more expensive and less essential, who is really winning and who is about to lose everything?

FAQ:

Q: What are Victoria's new work-from-home laws?
A: Victoria's new laws will give employees who can work from home the legal right to do so two days a week from September 1, 2026, with businesses under 15 employees exempt until July 1, 2027.

Q: How many Victorian businesses plan to hire offshore in response to the WFH laws?
A: Forty-three per cent of Victorian businesses plan to increase offshore hiring in response to the new WFH laws, according to data from global payroll company Remote.

Q: What are the unintended consequences of Victoria's WFH laws?
A: Experts warn the laws could accelerate offshoring by proving that roles can be done remotely from anywhere. If a job can be done from home, it can be done from Manila, Mumbai or Kuala Lumpur.

Q: Who qualifies for Victoria's work-from-home entitlement?
A: The entitlement applies to regular, casual, and part-time employees who can work from home. Disputes will be handled by the Victorian Equal Opportunity and Human Rights Commission or VCAT.

Q: What did business leaders say about the WFH laws?
A: The Victorian Chamber of Commerce said the laws would add "another layer of regulation" and warned of "increasing reports of jobs being sent offshore”.

Q: Is the Victorian government's WFH policy unique?
A: Yes, no other Australian premier is pursuing this approach, and critics say it makes Victoria the "most regulated" state for employment.