From 26 August 2025, the Australian Government’s right to disconnect laws will apply to small business employers.
Australia’s workplace landscape has undergone significant changes recently, with the Federal Government passing a series of amendments to the Fair Work Act – also known as the 'Closing Loopholes' laws.
The right to disconnect laws were introduced to non-small business employers in August 2024 and mark a fundamental shift in how work-life balance is managed in Australia.
We explain what the ‘right to disconnect’ laws mean for small businesses so you can plan how you will manage this change in your business.
Please note: Right to disconnect laws apply to businesses operating under the national industrial relations system (this includes businesses such as ‘Pty Ltd’ companies). If your business operates under the state industrial relations system (including sole traders, some micro businesses, unincorporated partnerships and unincorporated trust arrangements), these requirements do not apply to your business.
What is the right to disconnect?
The right to disconnect is a new provision under the Fair Work Act 2009 (Fair Work Act) that allows employees to refuse to engage in work related communication outside of their regular working hours, unless their refusal would be unreasonable.
Contact could include any form of communication that engages with employees, such as phone calls, emails, text messages, and social media. The timing applies to any contact or attempted contact outside an employee’s working hours.
Specifically, employees will have the right to:
- Refuse to monitor, read, or respond to any work related contact from their employer outside of their agreed working hours unless such refusal is deemed unreasonable.
- Refuse to monitor, read, or respond to work related contact from third parties (such as clients or business partners) outside their working hours, again unless refusal is unreasonable.
The right to disconnect has been formally embedded in all modern awards, meaning it applies across various industries and occupations.
How do you determine if contact is reasonable?
To determine what constitutes reasonable contact, small business employers should consider:
- The reason for contact – is it necessary or urgent? For example a manager may contact an employee to:
- Notify them of urgent office repairs that would prevent them from attending the workplace.
- Recall them to duty if a crisis is unfolding and the employee’s role is critical to the early response.
- It may also be reasonable to notify an employee of rostering changes, to conduct a welfare check, and confirm a return to work arrangement. However, they shouldn’t be expected to monitor or respond to queries about shift availability or other non-urgent matters outside of working hours.
How the contact is made counts
If you must contact an employee outside of work hours, there are some guidelines to help. When making reasonable contact outside of work hours, you should:
- Choose the least intrusive method.
- Minimise the disruption the contact causes to the employee – consider the length of time required to respond to the contact.
- Consider the extent to which the employee is compensated to remain available to perform work during the period in which the contact or attempted contact is made.
- Take into account the employee’s role and level of responsibility – managers should avoid contacting junior employees outside of their ordinary hours unless it is an emergency.
- Also think about the employee’s personal circumstances, such as family or caring responsibilities.
Practical implications for small businesses
The introduction of the right to disconnect may create several challenges, particularly for small businesses that often operate on tight schedules and rely on flexible working arrangements. Some scenarios include:
Interstate and global operations
For businesses with operations or clients in different time zones, the right to disconnect could complicate communication. For example, during daylight savings time, Western Australian employees may not be reachable by clients or colleagues in the eastern states until midday, potentially causing delays.
Emergencies and critical matters
If an employee refuses to respond to an emergency outside of working hours, it could lead to significant operational risks, especially in sectors where safety is paramount.
Working from home and flexibility
Businesses with staff working from home might need to renegotiate flexible working arrangements to avoid potential conflicts with the right to disconnect. For example, automated email systems might need adjusting to ensure messages are only delivered during working hours.
Preparing your business for the right to disconnect
Some practical steps you can take to incorporate the right to disconnect requirements into your business operations include:
1 - Assess reasonable contact
Assess your business operations to determine what constitutes reasonable contact after hours. For instance, you might consider if some roles need availability beyond regular hours and how these circumstances will be managed.
2 - Develop clear policies and procedures
Create or update your workplace policies to clearly define what constitutes 'unreasonable' contact outside of work hours. This might include setting specific guidelines on what type of communication is considered non-urgent and how it should be handled.
3 - Training and awareness
Educate your staff about the right to disconnect to ensure everyone understands their rights and obligations under the new laws, reducing the risk of disputes. If an employee is in a role where there may be reasonable out of hours contact, discuss this with them and consider how they are compensated for this.
Some resources you can share with your staff, or use to discuss the changes with them, include:
- Understanding the right to disconnect information sheet (Fair Work Commission)
- Tips for discussing out of hours contact (Fair Work Ombudsman)
4 - Implement technological solutions
Consider using technology to manage after hours communication better. For instance, email systems that delay delivery until the next working day can help ensure compliance with the new laws.
5 - Review and update employment contracts
Ensure that your employment contracts reflect the new right to disconnect provisions. This might involve legal consultation to accurately update the terms of employment, particularly for employees who may have roles requiring after hours contact.
Navigating potential challenges
While the right to disconnect aims to promote a healthier work-life balance, it’s crucial to recognise the potential challenges it may pose. The Fair Work Commission will play a significant role in interpreting what constitutes 'unreasonable' contact, considering factors like the reason for contact, the employee’s role, and their personal circumstances, such as family responsibilities.
Disputes may arise, and in such cases, businesses should attempt to resolve issues at the workplace level. If resolution isn’t possible, the Fair Work Commission can step in to help resolve the dispute.
More information
- Visit the Fair Work website to learn more about the right to disconnect
- Find out more about the 'Closing Loopholes' laws
- Understand your employer obligations
- Discover easy ways to become an employer of choice
- Learn 3 steps to handle a difficult situation with an employee
