The Right to Disconnect law has passed in Australia and is now in effect for larger businesses, but employers are still trying to understand what type of after-hours contact is considered reasonable or unreasonable. 

So, if you run a small business in Australia, what do you need to know? Let’s lay out the facts. 

What is the Right to Disconnect?

The right to disconnect says eligible employees in Australia don’t have to respond to work-related communication outside of normal working hours. 

For example, in the healthcare industry, it would be unreasonable for a doctor to refuse a phone call about a patient emergency. However, if a barista refused to take a call from their boss about a missing coffee mug outside of working hours, this would be considered a reasonable refusal.

Key things to know about the Right to Disconnect

So, what does the Right to Disconnect mean for business owners? Basically, you’ll need to consider what reasonable contact with your employees is outside of working hours. 

If an employee is eligible to disconnect, they can refuse your phone calls and ignore your emails—unless the refusal is unreasonable. Business owners who employ more than 15 people must follow this new law. Businesses employing 14 or fewer will not be subject to the Right to Disconnect until 26th August 2025.

These considerations also apply to third parties and must be explicit in ongoing working agreements.

Purpose of contact

An employer must consider the purpose of contacting their employee before making an attempt. Is this a work-related activity? Is this urgent or time-sensitive? Is this a reasonable time to speak with the employee?

How contact is made

How is contact made: email, phone, or a messenger app like Slack? Is the contact via a work or personal device? When is this contact initiated, and will contact invade work-free hours? It may seem that contact after hours is harmless, but with the Right to Disconnect it is a factor employers need to consider.

Employee’s role and responsibilities

Employers need to consider the role of the employees they are contacting. Would this contact be considered overtime? If contact is made and an employee is required to work outside their regular work hours, this may constitute overtime not outlined in their contract. Employers may find themselves in hot water due to unpaid work hours and on the hook for unbudgeted payroll costs. 

Employees’ personal circumstances

Employers have a duty of care towards their employees to ensure a good work-life balance. Will contacting the employee after working hours interfere with their personal life? Employers need to be aware of the ripple effect that contact can have on their employees’ personal lives.

Pros and cons of the Right to Disconnect

The Right to Disconnect will allow your employees to enjoy their personal time and recharge before getting back to work. A happier and refreshed workforce will provide a more positive work environment and contribute to the overall efficiency of your business.

However, potential issues that could arise from the Right to Disconnect include conflict in the workplace due to miscommunication and unclear working arrangements. If you and your employees are not on the same page, this can lead to a strained relationship. 

For issues that occur due to this and can’t be resolved in-house, you may find that you will have to settle your disputes with the Fair Work Commission.

Fair Work Commission and the Right to Disconnect Disputes

Now that Aussies have the right to disconnect, it’s important that you and your employees get on the same page about what it looks like for your small business.

So how would a small business owner tackle a Right to Disconnect dispute?

The first step is to have a conversation about expectations, what is considered reasonable contact outside of working hours, and of course, what is in their employee’s contract or related awards/enterprise agreement. This allows everyone to be on the same page regarding work. 

But what happens when conflict arises when an employee refuses contact?

The Fair Work Commission says any dispute must first be handled in the workplace. If no resolution comes from this internal discussion at work, the Fair Work Commission can deal with the dispute. A dispute handled by the Fair Work Commission can have two outcomes: a stop order or a fine.  

Stop Order is put into place for:

An employee unreasonably refusing to accept contact
An employer punishing an employee or making continued requests to monitor, read, or respond to work-related tasks after hours

Employers can be fined up to $18,780 for an individual or $93,900 for a corporate body. Employees will not be subject to fines; however, they could face termination at their Employer’s discretion due to repeated violations.

This is a last resort, and any dispute should be carefully handled before the Fair Work Commission needs to be involved.

What should Small Businesses do about the Right to Disconnect

The Right to Disconnect laws simply put some boundaries in place. Adjusting employer and employee expectations allows you to collaborate more effectively and improve efficiency. 

Employers and employees must be on the same page about work-related communication. This communication could save precious time and resources when running your business. The best policy is collaboration: to prevent a dispute from occurring, have a clear and agreed-upon working arrangement with your employees, setting your business and them up for success.