Right to Disconnect for Small Business: What Changed in August 2025

Updated October 2026: Since 26 August 2025 the right to disconnect applies to all employers, including small businesses (it started for larger employers on 26 August 2024). There is no legal requirement to have a right to disconnect policy or to change employment contracts, but a clear after-hours contact policy and documented on-call arrangements are the best way to show any contact is reasonable. We have updated this post from its original pre-August 2025 countdown. For help with an after-hours contact policy, see our HR policies and procedures service.

Right to disconnect for small business: what changed in August 2025

Australia's right to disconnect laws have applied to small businesses since 26 August 2025.

This landmark change gives employees the legal right to refuse work contact outside their normal hours unless their refusal would be unreasonable. Larger businesses have had to comply since 26 August 2024, and small businesses (fewer than 15 employees) since 26 August 2025. There is no legal requirement to have a policy, but clear expectations and trained managers make compliance much easier.

The stakes are significant: failure to respect these rights can lead to Fair Work Commission intervention, adverse action claims, and substantial penalties. But beyond compliance, this represents an opportunity to improve work-life balance and attract talent in a competitive market.

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Understanding right to disconnect laws

The right to disconnect means employees can refuse to monitor, read, or respond to work communications outside their working hours. This includes emails, phone calls, text messages, and any other form of work contact.

The law doesn't ban all after-hours contact – instead, it establishes a framework where contact must be reasonable and employees can refuse unreasonable requests. This builds on existing obligations under the Fair Work Act 2009 but introduces specific protections that many employers aren't fully prepared for.

Small businesses are defined as those with fewer than 15 employees, including associated entities. Since 26 August 2025 the same right to disconnect rules apply to every employer, whatever its size.

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Your legal obligations as an employer

Small businesses should set clear boundaries around after-hours contact while keeping the flexibility to deal with genuine business needs.

Core Requirements

Since 26 August 2025, small business employees can refuse to monitor, read, or respond to work contact outside their working hours, unless the refusal is unreasonable. This applies to all forms of communication including emails, calls, texts, and instant messages.

Key obligations: You cannot take adverse action against employees who exercise this right. There is no legal requirement to have a policy or change contracts, but a clear after-hours contact policy is the best way to show any contact is reasonable.

The law recognises that some contact may be necessary, but establishes clear boundaries around what's acceptable.

Reasonableness Test

Not all refusals to respond are protected – the law includes a reasonableness test that considers multiple factors. The Fair Work Commission will assess each situation individually.

Key factors include: The reason for contact, disruption level, whether the employee is compensated for availability, their role and seniority, and personal circumstances including family responsibilities.

Emergency situations and roles with explicit on-call arrangements may justify after-hours contact, but these must be clearly defined and fairly compensated.

Implementation Steps

Start by auditing your current after-hours communication practices. Identify which roles genuinely require availability and document the business justification.

Essential actions: Create or update your communications policy, train all managers on the new requirements, and review employment contracts for affected roles.

Consider practical solutions like email scheduling, separate work devices, and clear escalation procedures for genuine emergencies.

Penalties & Risks

Breaching right to disconnect laws can result in Fair Work Commission intervention, including stop orders and dispute resolution proceedings. Employees can also bring adverse action claims.

Beyond legal penalties: Non-compliance risks include increased turnover, difficulty attracting talent, and reputational damage in a tight labour market.

Proactive compliance protects your business while potentially improving productivity through better work-life balance.

The Fair Work Commission will consider multiple factors when determining reasonableness, making it essential to document your approach carefully.

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How right to disconnect impacts your business

The implementation of right to disconnect laws affects multiple aspects of your business operations, from daily communications to strategic workforce planning.

Business Area	Immediate Actions Required	Long-term Benefits
Policy Development	Create after-hours communication policy, define emergency procedures, update employee handbook	Clear expectations reduce conflicts and improve operational efficiency
Manager Training	Train on new laws, establish approval processes for after-hours contact, review current practices	Better management practices and reduced risk of compliance breaches
Technology Systems	Implement scheduled send features, review on-call systems, separate work/personal devices	Improved work-life balance leading to higher retention and productivity
Contract Updates	Review role requirements, update position descriptions, ensure on-call arrangements are documented	Legal clarity protects both employer and employee interests

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Practical tips for managing right to disconnect

Here are practical strategies small businesses can put in place now:

✅ Develop an after-hours communication policy. It isn't legally required, but it sets clear expectations, and good policies take time and consultation with your team. Our HR policies and procedures service can help.

✅ Define what constitutes an emergency in your business. Clear definitions prevent confusion and ensure genuine urgent matters can still be addressed.

✅ Train all managers and supervisors on the new requirements. They're your front line and need to understand both the law and your internal policies.

✅ Use technology to support compliance. Schedule send features, out-of-office messages, and separate work phones can help maintain boundaries.

✅ Document role-specific requirements clearly. Some positions may require after-hours availability – ensure this is explicit in contracts and compensated appropriately.

✔ Consider implementing "core hours" where all team members are available. This reduces the need for after-hours contact while maintaining collaboration.

✔ Review your current workplace culture to identify areas where after-hours contact has become normalised without justification.

❌ Don't assume senior staff are exempt. While their roles may justify more contact, they still have right to disconnect protections.

Need advice on this?

Talk it through with an Employment Compass HR adviser before you act.

Call 1300 144 002

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Final thoughts

The right to disconnect laws represent a significant shift in how Australian workplaces operate. While the changes may seem challenging, they offer an opportunity to create healthier workplace boundaries that benefit both employers and employees.

Smart businesses are using this transition to review their communication practices, improve efficiency during work hours, and position themselves as employers of choice. With proper preparation and the right policies in place, compliance becomes straightforward.

Remember that these laws aim to balance operational needs with employee wellbeing. The rules now apply to every employer, so make sure your practices reflect them.

If you need further assistance with right to disconnect policies or other HR matters, our 24/7 HR Advice Line is available to all Australian business owners. Call us on 1300 144 002 today for expert advice and support tailored to your business needs.

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Frequently asked questions

Can I still contact employees outside work hours?

You can still contact employees, but they have the right to refuse to respond unless their refusal would be unreasonable. The key is ensuring any contact is genuinely necessary and considering factors like urgency, the employee's role, and whether they're compensated for availability.

How do I determine if after-hours contact is "reasonable"?

Consider the reason for contact, the disruption level, whether it could wait until work hours, if the employee is paid to be available, their seniority level, and any personal circumstances. Document your reasoning for any after-hours contact to demonstrate compliance if questioned.

Do these laws apply to managers and senior executives?

Yes, the laws apply to all employees including managers and executives. However, their senior roles and higher responsibilities may affect what's considered reasonable contact. Ensure senior role expectations are clearly documented in contracts with appropriate compensation.

What if my business operates 24/7 or has on-call requirements?

Businesses with legitimate 24/7 operations can still function, but need clear rosters, defined on-call arrangements, and fair compensation structures. Document which roles require after-hours availability as an inherent requirement and ensure employees understand these expectations before accepting positions.

What should I include in my right to disconnect policy?

Your policy should define standard work hours, specify what constitutes emergency contact, outline the process for approved after-hours communication, clarify role-specific requirements, and include dispute resolution procedures. A policy isn't legally required, but it helps. Employment Compass can provide customised policy templates through our 24/7 HR Advice Line on 1300 144 002.

General information only