By My CPE Pty Ltd | August 2025
From 26 August 2025, employees of small business employers in Australia will gain a new legal entitlement: the Right to Disconnect. This change, embedded in the Fair Work Act, empowers employees to refuse to monitor, read, or respond to any work-related contact—be it via calls, emails, texts or messaging outside their agreed working hours, unless doing so would be unreasonable. It is vital that small business owners understand the implications and prepare accordingly.n.
What is Changing?
1. Expansion of the Right
While this right has applied to larger businesses since 26 August 2024, it will now extend to small businesses, meaning those with fewer than 15 employees from 26 August 2025.
2. Scope of the Right
Employees may refuse to engage with work-related communication outside working hours unless such refusal is deemed unreasonable.
3. Determining “Unreasonable”
Whether a refusal is unreasonable depends on factors such as:
- The reason for contact
- Manner and frequency of contact and disruption caused
- Whether the employee is compensated (e.g. paid for being on call or working additional hours)
- The employee’s role and level of responsibility
- Any personal or caregiving responsibilities the employee may have.
What Small Business Employers Should Do
1. Familiarise Yourself with the New Rules
Visit the Fair Work Ombudsman’s Right to Disconnect page and related resources, including short videos designed for small business context, with subtitles in multiple languages.
2. Update Your Workplace Policies
- Review existing communications and on-call processes
- Draft or revise policies to clearly define expected communication hours and compensation for after-hours availability.
3. Discuss Expectations with Employees
- Encourage open dialogue to clarify what constitutes “reasonable” expectations regarding out-of-hours contact
- Provide illustrative scenarios tailored to your business to guide understanding and mutual respect.
4. Handle Disputes Proactively
If disagreements arise over out-of-hours contact, aim to resolve them informally within the workplace first. Should resolution fail, either party may apply to the Fair Work Commission (FWC) for formal assistance, such as stop orders or arbitration.
5. Why This Matters
- Promotes Work–Life Balance: The Right to Disconnect helps counter the expectation that employees must always be available, protecting personal time and reducing burnout
- Legal and Compliance Risks: Non-compliance may lead to disputes, with potential FWC orders and penalties
- Positive Workforce Culture: Respecting boundaries can increase employee morale and loyalty, reducing turnover.
The Right to Disconnect is a welcome progressive reform that balances employer needs with employee well-being. For small business owners, the keys to successful implementation are preparation, communication, and clarity. Start reviewing your practices now and ensure both your business and your team are ready for 26 August 2025.
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