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What the new 'Right to Disconnect' laws mean for Australian businesses

australian business business entrepreneur right to disconnect Aug 28, 2024
Woman receiving mobile phone call

A new workplace protection law has been introduced in Australia, giving eligible employees the right to refuse employer or third-party contact outside of working hours. But what does this mean for Australian businesses and how can employers stay prepared?

First of all, which employers will this new law impact?

According to the Fair Work Ombudsman, employees of non-small business employers have the right to refuse to monitor, read or respond to contact from an employer or third-party contact (including suppliers, other staff members or members of the public) unless it is unreasonable to do so.

What constitutes a non-small business employer?

A non-small business employer is an employer with 15 or more employees. When counting the number of employees, employees of associated entities of the employer are also included. Casual employees are not included unless they’re engaged on a regular and systematic basis.

Will the laws impact small business owners too?

Yes, it will. As of 26 August, 2025, the same rules will apply to small businesses too.

What does the term 'unreasonable' mean in the context of this new law?

When working out whether an employee’s refusal is unreasonable, the following factors must be considered, according to the Fair Work Ombudsman:

  • the reason for the contact
  • how the contact is made and how disruptive it is to the employee
  • how much the employee is compensated or paid extra for:
    • being available to perform work during the period they’re contacted, or
    • working additional hours outside their ordinary hours of work
  • the employee’s role in the business and level of responsibility
  • the employee’s personal circumstances, including family or caring responsibilities.

Do other countries already enforce a similar rule?

More than 20 countries, mainly in Europe and Latin America, enforce similar regulations.

If you're unsure about how to navigate the introduction of the new rules, here's a list of things business owners can do to be confident, informed and prepared:

1. Set expectations

There has been a lot of debate about the vocabulary used in regards to the newly introduced law, as well as what the word 'reasonable' actually means and how the word may be interpreted. To remove as much ambiguity as possible, have discussions with your team about what their working hours are and if they do have a flexible working arrangement, what the expectation is around communication. This can be discussed together as a team or individually, to ensure understanding and acknowledgement, and also to set realistic expectations. 

2. Have an open dialogue with employees

With any new pieces of information or legislation that may impact our businesses and lives, it's important to get an understanding about what your employees think and feel about the new introduction, so you can gauge their response, concerns and determine their understanding of the issue. Having an open dialogue with employees will have you working toward being on the same page and help you continue to create a harmonious working environment. 

3. Review current awards and contracts

It’s important to check the relevant award, enterprise agreement or employment contract for entitlements that may apply to your current employees. In some situations, for example, an employee may be required to monitor, read or respond to contact (or attempted contact) from the employer outside their working hours in accordance with an award term. Identify what your employee's current award terms are and identify if there are any gaps that will require further discussion. 

What do you think about the new law? Let us know in the comments!

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