As businesses across Australia evolve in response to new legislation, one concept that stands out is the “Right to Disconnect.” With the introduction of the Fair Work Amendment (Right to Disconnect) Bill 2023, this policy has significant implications for employers and employees alike.
If you’re a business owner or manager in Australia, you’re probably wondering, “What does this new law mean for my business?” In this blog, we’re going to break down the Right to Disconnect—what it is, why it matters, and how you can ensure compliance while maintaining a happy, productive team. ⬇️
What the law says about your employees’ ‘Right to Disconnect’ in Australia
The Right to Disconnect grants Australian employees the ability to refuse work-related communications outside of their ordinary working hours, except in specific circumstances where refusal would be deemed unreasonable.
As of 26 August 2024, medium to large Australian businesses (those with more than 15 employees) will need to comply with the Right to Disconnect law. Small businesses, with 14 or fewer employees, will have until 26 August 2025 to comply.
The amendment to the Fair Work Act 2009 (Cth) applies to all modern awards, though different industries may face unique challenges. For example, sectors like healthcare and emergency services, where on-call responsibilities are common, may need to adopt tailored solutions to remain compliant while ensuring essential services continue.
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Enforcement mechanisms
Wondering who’s going to be overseeing this new right?
The Fair Work Commission (FWC) will play a critical role in overseeing disputes related to the Right to Disconnect. If an employee feels their right to disconnect is being ignored or violated, the first step is to attempt to resolve the issue internally — having a good ol’ chat with their employer. But, if the matter isn’t settled at the workplace level, it can be escalated to the FWC.
The Commission has the authority to issue orders, which might range from requiring an employer to stop contacting an employee outside of hours to stopping disciplinary action taken against an employee for refusing to engage in such contact. This dispute resolution process highlights the enforceable nature of the Right to Disconnect.
What constitutes ‘reasonable contact’?
Now, the big question: What counts as reasonable contact outside working hours? The legislation doesn’t spell it out exactly, leaving some room for interpretation. But there are a few key factors that you, as an employer, should consider before hitting “send” on that 8pm email 👇
- The reason for contact: Is it urgent? Does it require immediate action? An emergency might justify out-of-hours contact, but routine matters can almost always wait until the next business day.
- Mode of communication: A phone call is likely to be more disruptive than an email. If it’s something that doesn’t need instant attention, consider using a less intrusive method of communication.
- Compensation for after-hours work: Is the employee being compensated for being available outside their normal hours? If not, it’s probably not reasonable to expect them to respond.
- Employee’s role and responsibilities: High-level managers may need to be more accessible than junior staff, but this doesn’t mean they’re always on call. Make sure your expectations are clear and appropriate for the role.
- Personal circumstances: Consider employees’ family responsibilities or caregiving duties. Employees with young children or other caring responsibilities might have legitimate reasons for not responding outside of their standard hours.
Some practical examples of reasonable vs unreasonable contact ⬇️
✅ Reasonable contact – Your department head is needed to approve a critical decision for a project that has a tight deadline. In this case, it may be unreasonable for them to refuse contact.
❌ Unreasonable contact – You ask a junior staff member to respond to routine emails on a Saturday when it can easily wait until Monday. In this instance, their refusal to engage is likely reasonable.
Dispute mechanism
The Right to Disconnect encourages internal conflict resolution first. Employers and employees should sit down and talk about their expectations for after-hours communication. Clear communication upfront can prevent most disputes before they even begin.
But, if things don’t get resolved, that’s when the Fair Work Commission steps in. Disputes can be referred to the FWC, and they’ll issue legally binding orders, ensuring that the new rights are upheld. The goal here is to foster a fair and balanced work environment where both employees and employers feel respected and understood.
What this means for your Australian business
For your operations and workforce management
So, how will the Right to Disconnect change the way your business operates? First off, it’s going to require a shift in how you manage communication with your employees. You’ll need to reassess when and how you’re contacting your team outside regular hours, especially if you’re working with global teams in different time zones.
For international businesses, this is particularly tricky. You might have employees in Australia working with colleagues or clients in Europe or the U.S., where working hours don’t line up. The solution? Setting clear expectations and perhaps scheduling meetings during overlapping hours, so no one feels pressured to work after hours.
This new law will require employers to update their employment contracts and internal policies. It’s important to clearly define what constitutes reasonable contact outside of working hours and detail any circumstances where employees are expected to be available.
💡Updating your employee handbook to include the right to disconnect will ensure that everyone knows their rights and responsibilities.
For your workplace culture and employee wellbeing
There’s no doubt that the Right to Disconnect will have a positive impact on workplace culture and employee wellbeing. One of the main reasons this legislation exists is to improve mental health outcomes for Australian workers.
According to Safe Work Australia, mental health-related absences cost the economy billions annually. Employees who can switch off from work have more time to recharge, engage in personal hobbies, and spend time with loved ones. All of these factors contribute to a more focused, motivated, and resilient workforce during business hours.
In today’s job market, work-life balance is a deal-breaker for many. In fact, a 2024 Randstad survey found that 57% of workers would reject a job offer if it negatively impacted their work-life balance. Businesses that embrace the Right to Disconnect will be better positioned to attract and retain top talent.
Anticipating the challenges of the ‘Right to Disconnect’
If your industry requires round the clock availability
While the Right to Disconnect legislation is a huge step forward in promoting work-life balance and employee wellbeing, some industries face unique challenges in its implementation—particularly those that require staff to be on call. Sectors like healthcare, emergency services, utilities, and other essential trades often depend on having employees available outside standard working hours. In these fields, the line between personal time and work responsibilities is often blurred, and disconnecting completely might not always be feasible.
So, how can these industries comply with the new law without disrupting their critical services?
In these cases, businesses can explore availability allowances. Section 64A of the Fair Work Act allows employers to compensate employees for being available outside of ordinary work hours, ensuring that essential services can continue without infringing on employees’ rights.
Productivity concerns
Some businesses may worry that disconnecting employees will hurt productivity, especially in fast-paced environments where clients expect immediate responses. While this is a legitimate concern, setting clear guidelines for urgent communications can help mitigate the impact.
Training managers to balance business needs with employee wellbeing will also play a crucial role. When employees know that they can disconnect without jeopardising their job prospects, they’re likely to be more focused and productive during work hours.
How to prepare your business for ‘Right to Disconnect’ compliance in Australia
Review and update contracts and policies
Your first step toward compliance is to review and update your employment contracts and internal policies. Make sure your contracts clearly define what types of out-of-hours communication are acceptable, and specify when employees can reasonably refuse contact. This will give both you and your employees clarity about their rights and responsibilities.
Ensure your employee handbook includes a section on the Right to Disconnect. This way, employees know exactly where they stand, what’s expected of them, and how the law protects them. Setting clear expectations will not only keep you compliant but also help prevent misunderstandings that could lead to disputes.
Train managers and HR teams
Your managers and HR teams will be on the front lines when it comes to implementing the new rules. Make sure they’re well-trained on the law and understand how to handle after-hours communication appropriately. Managers should know how to balance business needs with employees’ personal circumstances and should lead by example by respecting the Right to Disconnect themselves.
Empowering your HR teams to manage these conversations effectively and making sure they know how to address employee concerns will help create a smooth transition to compliance.
Communication protocols and expectations
Finally, establish clear communication protocols for when and how it’s appropriate to contact employees outside of their regular hours. Define the types of situations that warrant after-hours contact, such as emergencies or critical client requests, and make sure your teams are aware of the boundaries.
If you work with international teams, think about how time zones will factor into your communication. Set realistic expectations for when employees are available and encourage team members to respect each other’s working hours, even across borders.
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