As of 26 August 2024, the Right to Disconnect has officially come into effect for most Australian employees. For small business employers, however, the countdown has just begun. The grace period ends on 26 August 2025, when these provisions will apply to them as well. While it might seem like there’s still time, small businesses should start preparing now.
This new workplace entitlement reflects the evolving expectations around work-life balance, particularly in an era dominated by digital communication and remote work arrangements.
What is the Right to Disconnect?
The Right to Disconnect, introduced through section 333M of the Fair Work Act, grants employees the legal right to reasonably refuse to monitor, read, or respond to work-related contact from their employer outside of normal working hours — unless doing so would be unreasonable.
The legislation is not a blanket ban on out-of-hours contact. Rather, it provides a framework that promotes respectful and balanced workplace communication while acknowledging that certain situations may require contact beyond the standard workday.
What Does “Unreasonable” Mean?
The law outlines that employees must not unreasonably refuse contact. But what exactly is “unreasonable” can vary based on circumstances. Some factors that may influence this include:
- The nature of the employee’s role or level of responsibility
- The urgency of the matter at hand
- Whether the contact was expected (e.g. emergencies, roster changes)
- The employee’s personal circumstances (e.g. if they are on approved leave or caring for family)
Ultimately, the Fair Work Commission has jurisdiction to resolve disputes about whether an employee’s refusal to respond was reasonable or not.
Why Small Businesses Should Act Now
While small businesses have until August 2025 before the changes legally apply to them, it’s prudent to use the coming months to adapt policies, train staff, and implement processes that align with the new standard. Failing to prepare could lead to workplace disputes, decreased morale, or legal exposure.
Furthermore, the Right to Disconnect is now recognised as a “workplace right” under the general protections provisions of the Fair Work Act. This means that adverse action must not be taken against an employee who exercises this right reasonably — making compliance even more critical.
Key Considerations for Small Business Owners
Here’s what small business owners should be mindful of as the right to disconnect approaches:
- Update Employment Contracts and Position Descriptions
- Clearly outline any reasonable expectations of out-of-hours contact, particularly for roles where such communication may be unavoidable.
- Define what constitutes a typical workday and what type of contact might be considered reasonable.
- Revise Internal Policies and Procedures
- Review or create policies around workplace communication, including expected hours of availability and escalation procedures for urgent matters.
- Ensure policies promote respect for employees’ personal time, without creating ambiguity that could lead to non-compliance.
- Train Managers and Team Leaders
- Provide training on the implications of the Right to Disconnect.
- Encourage a culture of trust and balanced communication.
- Ensure management understands when it’s appropriate to contact employees after hours — and when it’s not.
- Coordinate Across Time Zones
- If your business works with contractors or team members overseas, be sure to address how time zone differences may affect communication patterns.
- Consider implementing scheduling tools or shared calendars to help align expectations.
Looking Ahead
The practicalities of the Right to Disconnect will become clearer over time as the Fair Work Commission and courts begin to handle related disputes. However, small businesses should not wait for a legal precedent to begin updating their practices.
A proactive approach will not only keep you compliant but will also help build a healthier, more sustainable work culture — one where employees feel respected and employers benefit from improved retention, productivity, and engagement.
Need Guidance?
If you’re unsure how these changes may impact your business, our team at NB Employment Law is here to help. We offer tailored advice for small business owners looking to update contracts, implement policies, and train managers in line with the Right to Disconnect.
Book your complimentary consultation today to prepare your business for August 2025 and beyond.