The Right to Disconnect

Don’t believe that work-life balance impacts your business? It could be the reason you’re losing out on top talent.

In January 2024, A Randstad survey reported that 57% of workers surveyed would reject a job offer if it would “negatively affect their work-life balance.” Today’s employees are clearly prioritising their mental wellbeing.

With the rise of technology, boundaries between our work and personal lives have become increasingly blurred. This has led to the rise of the “Right to Disconnect” movement, which advocates for employees’ right to disengage from work-related communications and activities outside of their contracted hours.

This article will address what this law means for a small or larger business employer. It will bring you up to date with everything you need to know about this legislation and its implications in your workplace.

The legal landscape of the Right to Disconnect

In Australia, the Right to Disconnect is a workplace right under general protection laws. Having come into play on the 26th of August 2024, they are protected under the Fair Work Act 2009.

Employees of non-small business employers have the right to refuse to monitor, read or respond to contact (or attempted contact) outside their working hours, unless doing so is unreasonable. This includes contact (or attempted contact) from an employer or a third party.

For small business employers (fewer than 15 employees) and their employees, the Right to Disconnect provisions apply from 26 August 2025.

Contact or attempted contact from an employer or another person (if the contact is work-related) could include a range of communication channels used to engage with employees such as:

• Calls

• Emails

• Texts

• Social media

• Messaging services

Right to disconnect myths

• The Right to Disconnect rules don’t make it unlawful for an employer to contact an employee outside working hours. Instead, they give employees a right to refuse to monitor, read or respond to the contact, unless doing so is unreasonable.

• 'An employee can’t use their right to disconnect if their contract includes reasonable additional hours.’  — An employee has a right to disconnect and refuse contact outside their working hours unless doing so is unreasonable. Whether a refusal is reasonable will depend on the circumstances of the employee and the refusal.

The impact on employee mental health and wellbeing

The Right to Disconnect is more than just a legal concept; it’s increasingly becoming a crucial consideration of the modern workplace.

Constant connectivity can lead to burnout, stress, and a decline in mental health. When employees are expected to be available around the clock, especially with no financial compensation, it blurs the lines between work and personal life, making it difficult to relax and recharge.

It’s thought that the Australian economy loses between $12.2 and $22.5 billion per year due to poor mental health. This includes sick pay and meeting the recruitment needs of leave. However, the same source reveals that every dollar invested in supporting employee mental health delivers an ROI of at least $2.30.

The right to disconnect and enjoy oneself can actually help the long-term growth of your business and improve outcomes across the board.

Legal risks and employee retention

An employer may be subject to penalties of up to $18,780 for an individual or $93,900 for a body corporate per contravention for contravening a Commission order in relation to the Right to Disconnect.

Respecting the Right to Disconnect can also lead to higher employee satisfaction and retention.

• Increased loyalty — Employees are more likely to stay with a company that respects their personal time and wellbeing, seeing mental health benefits too.

• Higher productivity — Well-rested employees are more productive and creative, contributing to the overall success of the business.

• Positive company culture — A workplace that values work-life balance fosters a positive and supportive company culture, attracting and retaining top talent.

Challenges and considerations

One major concern is maintaining business continuity and meeting client demands. To address this, you should establish clear communication protocols for after-hours contact.

Use shift and roster planning software to implement rotational shifts if you’re concerned about urgent matters needing attention outside of work hours. Communicate with your clients to ensure you set expectations about response times outside of regular working hours.

For businesses with global teams or those in demanding industries, flexible policies are essential. These should be adaptable to different time zones and roles. Also, training employees and managers on the importance of the Right to Disconnect can also foster a culture that respects work-life balance, protecting your business from legal and reputational risk. When managers and executives respect the Right to Disconnect, it sets a positive example for your business.

Regular check-ins with employees to discuss their workload and any challenges they face in disconnecting from work can help identify and address issues early on. Clearly communicating and consistently enforcing the policy is vital for its success. This could include weekly or bi-weekly one-to-one meetings.

How to implement the Right to Disconnect

Implementing the Right to Disconnect requires thorough planning and clear policies. You can view this change as an opportunity. The Department of Employment and Workplace Relations [(DEWR) Right to Disconnect Factsheet says, “The employee right to disconnect will encourage employers and employees to talk about contact out of hours and set expectations that suit the workplace and the particular role.” Here are practical steps to take to help introduce these policies effectively:

• Develop a clear policy — Start by creating a comprehensive Right to Disconnect policy. BrightBase offers a ready-to-use template that can be customised to fit your business needs.

• Set communication standards — Establish guidelines for when and how employees can be contacted outside of work. Define what constitutes an emergency and ensure everyone is on the same page.

• Use technology to make life easier — Leverage scheduling tools and automated responses to manage workloads and set boundaries. Effective HR software can help plan shifts, manage employee availability, and streamline communications, ensuring all your staff can disconnect without disrupting business operations.

Higher job satisfaction levels

The University of Queensland’s Associate Professor Stacey Parker believes that, “When someone feels they have work-life balance, they tend to perform better at work and have greater life satisfaction.”

Dr Parker also notes that the introduction of the right to disconnect in Australia is a “strong step forward.”

This relates to the potential adverse health consequences of having a poor work-life balance. She adds, “If people cannot disconnect completely from work, serious, long-term chronic health problems can develop.” By promoting a better work-life balance among employees, you’ll lower the costs of employee illness and recruitment.

The right to disconnect can be a steppingstone for better physical and mental health outcomes for workers across Australia.

The right to disconnect’s impact on workplace culture

The majority of employees want to support your business and work hard during their assigned working hours. But often, they’ll have personal caring responsibilities or children to look after alongside their working life. Or they just want to spend time outside of their working hours with their loved ones and recharging.

When contacted in their free time, employees can feel frustrated and anxious. For example, if an employer calls their employee to request that they send an email. At worst, employees could resign if they feel they have a poor work-life balance with their current company.

Following the right to disconnect (Australia) regulations can help reduce employee turnover, especially among parents and family carers. Previously unsatisfied or ‘burned out’ employees are more likely to be loyal to your company. And they’ll be able to apply their best potential at work knowing that their free time is theirs.

Potential challenges and solutions

One potential downfall of this law is for industries such as healthcare, emergency services, and trades. These employees usually need to be ‘on-call,’ leading employers to wonder whether the right to disconnect still applies.

However, section 64A of the Fair Work Act offers a practical exemption. It declares that employees don’t need to monitor, read, or respond to any kind of work-related communication outside of working hours, “unless the employee is in receipt of an availability allowance for the period during which the communication is made.”

Section 64A (3) defines an ‘availability allowance’ as, “An allowance for being rostered, or otherwise directed by an employer, to remain available to perform work during the period." This could be the solution to helping you meet the challenges of your business. It can establish a legal basis for contacting employees away from their time at work. Crucially, this would require the employee to agree to an ‘availability allowance’.

Equally, you may face resistance from your employees when your business begins to implement the right to disconnect policy. Your employees may worry they’ll be overlooked for promotion or that they’ll face tension or negative consequences for exercising their rights.

This can cause resistance and undermine this regulation’s intention. A best practice to overcome this would be to reassure employees that this won’t happen by training their managers to uphold these rights, updating your policies to reflect this new right, and leading by example.

Get help implementing the Right to Disconnect from BrightHR

To save admin time, you can update your policies and handbooks with HR documents and templates. Get access to hundreds of expertly written policies, templates, and guides' and make sure your employees are getting their well-earned downtime with a staff time-tracking app.

BrightHR software and our 24/7 employment relations advice line can help you maintain your productivity, staffing levels and everyday commercial operations while implementing the right to disconnect in Australia.

Have more questions about how the updates to the Fair Work Act applies to your business? Download our Right to Disconnect FAQs for more guidance.

Book a free demo with one of our friendly experts or call us on 1 300 029 198 for more information.