Right to Disconnect: Small Business Countdown to August 2025

Small Business Countdown to August 2025

Small businesses have less than 70 days to prepare for Australia's right to disconnect laws taking effect on 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. While larger businesses have been complying since August 2024, small businesses (under 15 employees) must now implement policies and train managers before the deadline.

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. If your business grows beyond this threshold, you'll immediately need to comply with the laws that apply to larger businesses.

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Your legal obligations as an employer

Small businesses must establish clear boundaries around after-hours contact while maintaining operational flexibility for genuine business needs.

Core Requirements

From 26 August 2025, small business employees can refuse to monitor, read, or respond to work contact outside their working hours. 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. You must update employment contracts and workplace policies before the deadline.

The law recognizes 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 labor 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 actionable strategies that small businesses can implement before the August deadline:

✅ Develop your after-hours communication policy now. Don't wait until August – creating effective policies takes time and consultation with your team.

✅ 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.

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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. By taking action now, you'll be ready when the deadline arrives on 26 August 2025.

If you need further assistance with right to disconnect policies or other HR matters, our 24/7 Advice Line is available to all Australian business owners. Contact 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 never contact employees outside work hours after August 2025?

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. Employment Compass can provide customised policy templates through our 24/7 advice line on 1300 144 002.