Exclusive:Nearly half ofVictorianemployers plan to increase offshore hiring in response to the state government’snew work-from-home rules.
Under the new rules, which are set to come into effect on September 1,regular, casual, and part-time employeesin Victoria who can work from home will have the legal right to do so two days a week.
Victorian workers could be stung by the state's new WFH rules.Paul Jones
The laws will be delayed until July 1, 2027, for businesses with fewer than 15 employees.
Data from global payroll and employment infrastructure company Remote has revealed how businesses plan to respond to theWFH overhaul.
It shows that 43 per cent of businesses will increase offshore hiring if the new policies are mandated as minimum requirements.
Another 47 per cent said they will shift toward contractors rather than permanent staff to reduce regulatory complexity.
“This doesn’t mean permanent employment is disappearing, but it does mean organisations may become more selective about which roles they hire for on an ongoing basis,” Nick Martin, APAC GTM lead at Remote, told nine.com.au.
He said the new WFH rules will contribute to a broader landscape where organisations are facing a mix of pressures including rising costs, higher compliance load, and shifting workforce expectations.
“It’s natural for employers to start exploring different workforce models, such as hiring internationally,” he said.
“Most organisations make workforce decisions based on a mix of factors: skills needs, customer demand, growth plans, and compliance requirements, rather than a single intent to replace roles.”
Dr Giuseppe Carabetta, associate professor of workplace and business law at the University of Technology Sydney, said this reflects basic labour cost and control concerns.
“The Victoria proposal is framed not as a request, but a default entitlement unless the employer proves otherwise,” Carabetta told nine.com.au.
“Employers who want tighter control may hire workers in jurisdictions where they can impose stricter conditions, or shift to contractors who are easier to disengage and manage via deliverables or outcomes versus time.”
Offshore workers and contractors can also be cheaper and more flexible, which may be attractive to some employers.
It couldn’t come at a worse time for many Aussies.
Nearly half say they would need to make serious lifestyle cutbacks or struggle to afford essentials if their pay were to stagnate over the next 12 months, according to Remote data.
They’d face even more hardship if jobs were taken offshore, making the already competitive local job market even cutthroat.
Experts have saidworkers shouldn’t be surprisedthat some employers are considering taking jobs offshore in response to the proposed WFH reform.
“If your job can be done from home, it can be done from anywhere,” Graham Wynn, founder and director of Superior People Recruitment, previously told nine.com.au.
InAustralia, employers can make an employee redundant if the job is no longer required at all, or specific consultation obligations are met.
But an employer would have to prove the job is genuinely no longer needed and not simply relocated to a contractor or an offshore equivalent for it to be legal.
Those rules could protect Victorian workers worried about losing their job if they take advantage of the two-day WFH entitlement.
Employees that want to exercise their new WFH rights can protect themselves by making a formal written request to their employer and linking it to the new entitlements and why their role can be done remotely.
“What employees can control is how they stay resilient as work evolves, including building in-demand skills, keeping performance strong, and staying adaptable as ways of working shift,” Martin said.
Carabetta encouraged workers to watch for warning signs like sudden restructuring after a WFH request or changes to duties designed to justify ‘on-site’ requirements.
If employees notice changes, they should document everything.
“WFH is not absolute [and] employers can still refuse where physical presence is genuinely required,” he warned.
Employees in Victoria will have a legal entitlement to work from home two days a week, where possible.Louise Kennerley
Carabetta predicts the new rules will lead to more hybrid models, as well as more disputes and litigation over workplace entitlements.
But it’s not all doom and gloom.
“[We can be] positive about it [and] maybe expect more careful and considered workforce design, rather than blunt offshoring,” he said.
