The Right to Disconnect: What Small Businesses Need to Know
The line between professional and private lives continues to blur in today’s fast-paced work environment. Small business owners and their employees often find it harder to switch off, with constant pressure to stay “on.” That is set to change with Australia’s new right to disconnect law.
What Is the Right to Disconnect?
The Right to Disconnect is a provision under the Fair Work Act that allows eligible employees to refuse to monitor, read, or respond to contact (or attempted contact) from an employer or third party (including clients, suppliers, or staff from other businesses) outside their working hours. Employees are not required to answer calls, emails, texts, social media messages, or chat apps once they have clocked off, unless responding would be reasonable in the circumstances.
The law took effect on 26 August 2024 for organisations with 15 or more employees and applies to small businesses (fewer than 15 employees) from 26 August 2025.
Companies that breach a Fair Work Commission order about the right to disconnect can face penalties of up to $18,780 for individuals or $93,900 for a corporate body, per contravention.
When Is Contact Reasonable?
When deciding whether an employee can refuse contact outside usual hours, consider:
- The reason for the contact
- How the contact is made and how disruptive it is
- How much the employee is compensated for:
- Being available to perform work during the period they’re contacted
- Working additional hours outside their ordinary hours
- The employee’s role and level of responsibility
- The employee’s personal circumstances, including family or caring responsibilities
Other relevant matters may also be considered. It will generally be unreasonable for an employee to refuse contact if the contact (or attempted contact) is required by law.
How the Right to Disconnect Impacts Small Businesses
The Right to Disconnect aims to protect employee wellbeing, which can improve productivity and efficiency. It can also present challenges for small businesses, including:
Managing customer expectations
Balancing customer needs with staff boundaries can be difficult in service-driven businesses. Clear communication and defined response windows help set expectations and reduce disputes.
The need to be flexible
Some roles may occasionally require after-hours work. Address these needs in policy and provide appropriate compensation (including time off in lieu) so employees can maintain mental health, work-life balance, and their right to disconnect.
Balancing business and employee needs
Finding the right balance between operational requirements and staff wellbeing takes ongoing review. Adjust policies as needed so both your business and your team can thrive.
How to Prepare Your Business for the Right to Disconnect
Although the small-business start date is next year, early preparation reduces legal risk and helps avoid penalties. Consider the following steps:
Assess business operations
Map your operations to identify when after-hours contact could be reasonable. Distinguish roles that might require availability beyond ordinary hours and how those instances will be managed.
Develop clear policies and procedures
The Right to Disconnect does not prohibit employers contacting employees, nor employees contacting each other (including across time zones). Update workplace policies to define urgent vs non-urgent communications and set guidelines for how non-urgent items should be handled.
Educate your staff
Training and awareness reduce disputes. Ensure managers and staff understand the new provisions and their rights and obligations. Where reasonable out-of-hours contact is needed, discuss compensation and responsibilities upfront.
Implement technological solutions
Use tools and automation to manage after-hours contact. For example, schedule emails to send during business hours to support compliance with the new rules.
Review and revise employment contracts
Ensure employment agreements reflect the Right to Disconnect. Seek legal advice to accurately update terms for roles that may involve occasional after-hours communication.
How to avoid or resolve Right to Disconnect issues
Disagreements may arise about whether a refusal is unreasonable. If workplace resolution fails, the Fair Work Commission can make discretionary orders, including orders to stop:
- An employee from refusing contact
- An employer from taking certain actions
- An employer from contacting an employee outside normal hours
The Commission can make orders in favour of either party after considering the rationale for the refusal and whether it was unreasonable. Wherever possible, aim to resolve issues at the workplace level first.
Staying compliant
Employers should understand the legal ramifications, keep policies aligned with the law, and update employment contracts to reflect the Right to Disconnect. Taking these steps helps minimise risk and supports a healthier workplace culture.
How we can help
Ensure your business is compliant and navigate these changes with confidence. Lazarus Legal can help implement policies, update contracts, and advise on best-practice processes so your team can truly enjoy work-life balance.
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