Australia's peak business group is urging the Victorian government to abandon a plan to give workers the right to work from home for at least two days a week.

Business Council of Australia chief executive Bran Black claims the move would risk jobs, stifle investment in the state and undermine existing arrangements in individual workplaces.

The lobby group has formally opposed the move in a submission to the government.

"The proposal for a one-size-fits-all mandate will drive investment and jobs away from the state at a time they're needed most," Black said.

"Achieving the right level of flexibility is done at the workplace level, in discussions between employers and employees.

"There are already existing federal laws that provide rights for workers to request the flexibility th

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