How to comply with the new right-to-disconnect laws

December 29, 2024
6
minutes to read
by
Jaala Alex
Table of Contents

Running a small business in today's fast-paced world has its share of challenges, especially when balancing employee well-being and productivity. With the introduction of Australia's new "right to disconnect" laws, small business owners must take proactive steps to understand and comply with these regulations. These laws aim to create boundaries between work and personal life, ensuring employees have the time to recharge and maintain a healthy work-life balance. Here, I'll unpack what these laws mean, why they matter, and how you can stay compliant.

What is the law in Australia regarding the right to disconnect?

The right to disconnect law in Australia grants employees the right to disengage from work communications outside their standard working hours. This includes emails, phone calls, messages, or any other form of work-related contact unless exceptional circumstances apply. These laws are designed to curb the culture of being "always on" and give workers time to rest and focus on their personal lives.

When does the right to disconnect law start?

The right to disconnect law will take effect on 26 August 2025 for small business employers. From this date, all employers must adjust their workplace practices to comply with the new regulations. Small business owners need to begin preparing now, as the transition will require a review of current policies and possibly even cultural changes within the workplace.

What does the right to disconnect mean?

At its core, the right to disconnect means that employees are entitled to time free from work-related obligations once their standard working hours are over. Employers can only contact employees during this time in exceptional circumstances, such as emergencies or critical business needs that cannot wait. This law acknowledges that uninterrupted personal time is essential for mental health, productivity, and overall well-being.

Why was the right-to-disconnect law implemented?

The introduction of the right-to-disconnect law addresses a growing issue in the modern workplace: burnout. Studies have shown that constant connectivity to work leads to increased stress, poor mental health, and diminished productivity. According to the Australian Institute of Health and Welfare, mental health conditions cost the Australian economy $60 billion annually in lost productivity and healthcare expenses.

The COVID-19 pandemic further highlighted the need for boundaries as remote work blurred the lines between home and work life. This law aims to reduce these pressures and foster a healthier, more sustainable work environment.

Who proposed the right to disconnect laws?

The Australian Council of Trade Unions (ACTU) spearheaded the push for the right-to-disconnect law. The ACTU has advocated for better work-life balance and employee protections, especially as technological advancements make it easier for employers to contact employees outside of work hours. The proposal gained traction with support from various labour organisations and worker advocacy groups.

What does the right to disconnect benefit?

The right to disconnect provides benefits for both employees and employers:

Employee benefits:

  • Improved mental health: Employees can recharge, leading to lower stress levels.
  • Work-life balance: Workers can spend more time with family, engage in hobbies, or relax without work interruptions.
  • Reduced burnout: Unplugging from work fosters long-term well-being and productivity.

Employer benefits:

  • Enhanced productivity: Rested employees are more focused and efficient during work hours.
  • Attracting talent: Offering work-life balance makes your business appealing to job seekers.
  • Reduced absenteeism: Healthier employees mean fewer sick days and higher retention rates.

What fines exist if you don't comply with the laws regarding the right to disconnect?

Non-compliance with the right to disconnect laws can lead to significant penalties. Employers found in breach of the regulations may face fines of up to $13,750 per incident, depending on the severity of the violation. Repeat offenders could face even harsher consequences, including reputational damage and potential legal action from employees. Staying informed and prepared is essential to avoid these costly repercussions.

How do you ensure you comply with the laws regarding the right to disconnect?

Complying with the right to disconnect laws requires deliberate actions and clear communication. Here are some steps to ensure compliance:

  • Review existing policies: Examine current workplace policies and identify areas where changes are needed. Update employment contracts to reflect the new laws.
  • Set clear expectations: Communicate to employees when they are expected to be available and under what circumstances they can be contacted outside of work hours.
  • Train managers: Educate managers on respecting employees' right to disconnect. Ensure they understand how to handle urgent situations appropriately.
  • Use technology effectively: Leverage tools like automated email responses to inform senders that the recipient is unavailable after hours. Set boundaries in team communication platforms to discourage after-hours messages.
  • Encourage a supportive culture: Foster an environment where employees feel empowered to set boundaries without fear of repercussions.
  • Regularly monitor compliance: Conduct periodic reviews to ensure policies are being followed. Address any issues promptly to avoid penalties.

What other countries have the right to disconnect?

Australia is not the first country to implement the right to disconnect. Several nations have introduced similar laws:

  1. France: France pioneered the concept with its "El Khomri law" in 2017, granting employees the right to ignore work emails after hours. This regulation applies to companies with more than 50 employees.
  2. Germany: Germany has no formal laws but encourages similar practices through company policies. For example, Volkswagen limits after-hours email server access for some employees.
  3. Italy: Italy's labour laws provide a framework for employers and employees to negotiate disconnection policies.
  4. Canada: Ontario passed its right to disconnect law in 2022, mandating employers with 25 or more employees to create policies addressing after-hours communication.
  5. Spain: Spain's labour laws include provisions for digital disconnection, aiming to protect workers from the overuse of technology outside work hours.

Final thoughts

The right-to-disconnect law significantly shifts how Australian workplaces function. While it may seem daunting initially, embracing this change can lead to a healthier, happier, and more productive workforce. By taking proactive steps to understand and implement these regulations, you can avoid fines and position your small business as a leader in employee well-being. The benefits extend beyond compliance, fostering trust and loyalty within your team, ultimately contributing to long-term success.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).

Why waste time on financial admin when Thriday can do it for you?

Thriday Debit Card
Is your tax return stressing you out?

Book a free call with our resident tax expert Laura, to make tax time, relax time.

Book now
Need help switching your banking to Thriday? Book a free consultation
BOOK A CALL