New Right to Disconnect Laws: What Medium-Sized Business Owners in Australia Need to Know

Is it work-life balance or work-life integration? Does it even matter any more?

Australia's workplace landscape is set to change with the introduction of new "Right to Disconnect" laws, designed to protect employees' work-life balance and mental health. These laws are commonplace in countries like France and Ireland and as of today 26 August 2024 they come into play for Australia. If you run a small business they will be applicable as of 26 August 2025.

In short, employees will have the right to refuse contact outside their working hours unless that refusal is unreasonable. This means an employee can refuse to monitor, read or respond to contact from an employer or a third party.

For medium-sized business owners, those employing between 20 to 200 staff, this legislation could have significant implications.

What Are the Right to Disconnect Laws?

The "Right to Disconnect" laws grant employees the ability to refrain from engaging in work-related activities, like answering calls, emails, or texts, if they come through outside their contracted working hours. The intention is to establish a clear boundary between work and personal time, allowing workers to switch off after work hours without fear of repercussions.

These laws are intended to address burnout, promote mental well-being, and ensure that employees are not overworked, particularly in industries where remote work and digital communication blur the lines between professional and personal time.

Some considerations are:

• Work-hour Boundaries: Employers are prohibited from requiring employees to respond to work communications outside of their contracted hours unless exceptional circumstances apply.
• Employer Obligations: Businesses may be required to adopt policies outlining employees' rights to disconnect and ensuring that managers respect these boundaries.
• Exception Handling: There may be exceptions for emergency situations or roles that require on-call duties, but these must be clearly defined in employment contracts.

Who Will Be Impacted Most by These Laws?

• Business Owners with Remote and Hybrid Workforces: With the rise of remote work, employees often find it difficult to switch off at the end of the workday. The expectation to be always available is higher in these setups. Business owners managing remote teams will need to ensure clear boundaries are established to prevent work from spilling into personal time.
• Business Owners in Client-Facing or Time-Sensitive Sectors: Companies that deal with clients across different time zones or have tight deadlines may struggle to balance the "Right to Disconnect" with business demands.
• Businesses with On-Call Staff, Emergency Roles and those doing international trade: Companies operating in these sectors will need to clarify when and how employees are expected to be available outside regular hours. Special clauses in employment contracts might need to be reviewed to accommodate exceptions within the bounds of the new legislation.

How These Laws May Impact Medium-Sized Business Owners

• Operational Changes: Business owners may need to rethink their operations and workflows to align with the "Right to Disconnect" requirements. For example, if your business relies on after-hours emails to get tasks done, you’ll need to adapt to ensure productivity remains strong without infringing on employees' rights.
• Cultural Shifts: A potential culture shift may be required, particularly in workplaces where long hours and after-hours communication have become the norm. Business owners will need to set a good example, establishing a clear expectation that employees are not required to be available outside of normal working hours. Failure to adapt could lead to legal risks and damage to workplace morale.
• HR and Legal Compliance: Business owners will need to update policies, employment contracts, and training to reflect the new laws. This includes drafting policies that define working hours, emergency situations, and protocols for on-call duties. There may also be a need to communicate these policies clearly to employees and ensure they are implemented fairly across the organisation.
• Impact on Client Relationships: In businesses that are client-driven, managing client expectations will be key. You may need to educate clients on these new boundaries and establish processes that keep client service unaffected while respecting employee rights.

What Can Medium-Sized Business Owners Do to Prepare?

As with any transition, there is bound to be some friction. In a bid to minimise this, business owners could consider taking some of the following steps:

• Review Employment Contracts: Check your current contracts and ensure that any requirements for after-hours work are clearly outlined and in compliance with the new laws. You may need to amend contracts for clarity and to reflect the rights of employees to disconnect outside of normal working hours.
• Develop Clear Policies: Draft a comprehensive disconnect policy that outlines the expectations around work hours, defines exceptions, and provides guidance for emergency or ad-hoc situations. Ensure this policy is communicated to both employees and managers across the business.
• Implement Time Management Tools: Invest in time management software to help employees and managers track working hours and avoid after-hours communication. Automating email responses or scheduling can help reduce the pressure on employees to respond immediately to after-hours requests.
• Foster a Supportive Culture: Encourage a workplace culture that values work-life balance and recognises the importance of downtime. Leading by example as a business owner will help foster this cultural shift.
• Engage in Open Dialogue: Have an open discussion with employees to understand if they have any specific concerns regarding after-hours work. This can help identify areas of improvement and create a smoother implementation of the new laws.
• Be proactive: Know that you may not get it perfect from day one but ensure that communication is clear and let it be known that you are aware and working towards helping employees find that balance.

The introduction of "Right to Disconnect" laws clearly represents a shift in how work-life balance is going to be mandated and managed and this will likely impact many business owners. While it may require changes to operations, contracts and workplace culture it is also a strong opportunity for business owners to review their current situation and lead with positive intent demonstrating that their employees matter to them.

For more information - https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/right-to-disconnect

Please contact your professionals to help you navigate these changes as this is only an opinion piece and outline that should not be taken as legal advice.