VFF president David Jochinke said at a time when industries, such as agriculture, were primed to help lead Victoria's economic recovery, the last thing business needed was future uncertainty and added costs.

"Economic confidence is growing as we continue to transition to a COVID-normal environment in the short-term, especially in the Victorian agriculture industry," he said.

"It's vital industries such as ours continue to help pull Victoria out of recession. To do that, we need jobs and employers need certainty they won't be lumped with new costs such as this proposed levy."

"It's essentially a tax on employment which can only be seen as counterproductive in present times."

Mr Jochinke said that industry had not been consulted on the proposal and the VFF was still no clearer as to whether agriculture would be included in the pilot.

"We do not think agriculture should be included in the pilot. Farmers are having enough trouble finding harvest labour without added stress," he said.

"If the Government think there is a problem with the current system there is an established pathway to consider these things. This attempt to bypass the Fair Work Commission is unfair for employers."

"Casual workers already receive a 25 per cent casual loading in lieu of sick leave. By adding another entitlement, it's essentially allowing 'double-dipping'," Mr Jochinke said.

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