Victoria's upper house refers work-from-home laws to parliamentary committee

Victoria's upper house has referred Premier Ben Carroll's work-from-home laws to a parliamentary committee, in a major blow for Labor ahead of the November state election.

Labor was expecting its legislation to pass the upper house this afternoon after Mr Carroll made a series of concessions for businesses.

Instead, the motion to defer the bill was brought by Shooters, Fishers and Farmers MP Jeff Bourman.

After a months-long absence, Labor MP-turned-independent Adem Somyurek returned to parliament to vote in favour of the referral.

It narrowly passed 18 votes to 17.

"Sneakily at five minutes to midnight, [Opposition Leader Jess Wilson] has voted [work-from-home laws] down with the One Nation party."

The Legislative Council voted to refer the bill to a parliamentary committee to assess its economic impact on the state.

The move means the legislation is now unlikely to be debated before November's state election.

When asked whether he would recall MPs for an extra parliamentary sitting week, the Premier indicated he would not.

"I've already added one week to the parliamentary sitting," Mr Carroll said.

Then-premier Jacinta Allan announced Labor's work-from-home policy at the ALP's state conference in 2025, but it went on to be questioned by legal experts and opposed by the business sector.

At the time, Ms Allan said she intended to enshrine the rights before this year's state election.

Mr Carroll later delayed the commencement of the laws by nearly a year as the government sought further consultation with business groups.

The new premier has previously told the ABC that one of his key priorities was resetting his relationship with the business sector.

Business leaders have expressed concerns about a lack of flexibility in the legislation, and the economic impact of home office costs to smaller businesses.

Property Council Victorian executive director Cath Evans said the decision "was the only correct choice."

"The Victorian Parliament has seen sense," she said.

"Instead of forcing rushed legislation through Parliament, it has made the right call by sending the bill to a committee to properly examine its operation, implications and legal validity.

A Committee process means those concerns can now be examined properly, rather than being rushed through Parliament."

Victorian Greens leader Ellen Sandell said an extra sitting week was needed before the November election to pass the proposed laws.

"Workers were promised a right to work from home. Labor delayed it, gutted it and then completely botched getting it through Parliament," she said.

"Labor had the opportunity to pass a bill, and through sheer political incompetence and kowtowing to big corporations, they've now left workers with nothing."