Embracing the Right to Disconnect: What Business Owners Need to Know

The new Right to Disconnect law commenced on 26 August 2024 for non-small businesses in Australia.

This significant change to the Fair Work Act, part of the Closing Loopholes laws, means that, if you employ 15 or more employees, your workers now have the right to refuse work-related communications outside of their regular working hours unless it is deemed unreasonable for them to do so.

As a business owner, here are what you need to be aware of and what steps you should take to ensure compliance:

1. Set clear expectations with your employees to establish reasonable boundaries, considering the nature of their roles, levels of responsibility and personal circumstances.

2. Review and update contracts and policies to reflect the new right to disconnect and ensure these policies are clearly communicated to the management and all staff and employees.

3. Handle disputesinternally, if possible.

4. Start preparing, if you are a small business owner, as the new Right to Disconnect will apply to you from 26 August 2025.

5. Monitor and enforce compliance to avoid incurring penalties of up to $18,780 for an individual or $93,900 for a body corporate per contravention, as the right has commenced for you since 26 August 2025.

6. Ensure that your franchisees are fully informed and compliantwith these new requirements. Remember that, if you are a franchisor, you could be held liable for a franchisee’s breach of workplace laws, including the new Right to Disconnect. 

As these new laws come into play, now is the time to review your business practices and remain compliant.

If you need guidance, The Franchise & Business Lawyers is here to help. We will assist you in ensuring that your business not only meets legal requirements but also thrives within them.

Contact ustoday.