From August 2025, Australian small businesses with fewer than 15 employees must comply with the Right to Disconnect legislation. This follows the earlier rollout to medium and large businesses in August 2024 and represents a shift in how employee work-life balance is respected across workplaces.
What is the right to disconnect?
The right to disconnect gives employees the legal right to refuse to monitor, read or respond to work-related communications – such as emails, phone calls, texts or social media messages – outside their normal working hours.
Importantly, the law does not prevent employers from contacting staff after hours. Instead, it protects employees from being penalised if they choose not to respond, provided their refusal is not unreasonable.
This includes contact from the employer directly or from third parties such as clients, customers or suppliers.
How do you determine what is ‘unreasonable’?
Whether it is reasonable for an employee to refuse after-hours contact will depend on several factors, including:
- The urgency and purpose of the contact (e.g. emergency vs routine)
- The employee’s role and responsibilities, and whether availability outside hours is part of the job
- How disruptive or frequent the contact is
- Personal circumstances, such as family or caring duties
- Compensation or allowances the employee receives for being on call or available outside hours
Open discussions between small business owners and employees will be key to setting expectations and avoiding disputes.
What happens if there is a dispute?
If disputes arise, the first step should be trying to resolve them within the business. If this isn’t successful, the Fair Work Commission (FWC) can step in to assist with dispute resolution.
Employees are protected from adverse action if they exercise their right to disconnect lawfully. If the FWC makes a ruling in a dispute and it is not complied with, businesses can face significant financial penalties – up to $93,900 for companies and $18,780 for individuals per contravention.
Why this matters for small business
The new rules are not just about compliance, they’re about fostering healthier workplace cultures. For small businesses, this could mean:
- Improved staff wellbeing and retention, by showing respect for personal time
- Clearer boundaries and expectations, reducing misunderstandings
- Better financial planning, by understanding when overtime or allowances may apply
- Reduced risk, by avoiding costly penalties and disputes
How we can help
While we don’t provide legal or HR advice, we can help small business owners navigate the financial and operational impacts of this law, including:
- Forecasting payroll and overtime costs if after-hours availability is required
- Helping set up systems for accurate record-keeping, so you can monitor hours and communications
- Advising on cash flow and budgeting if new employee allowances or higher wage costs are introduced
- Supporting broader business planning, so compliance doesn’t come at the expense of efficiency or growth
Take action now to prepare your business
Now is the time to review your workplace practices and talk to employees about expectations for after-hours contact. Putting the right processes in place will help you meet your legal obligations while maintaining productivity and employee satisfaction.
If you’d like advice on how to factor these changes into your business planning, payroll or cash flow forecasting, get in touch with Accru today.
