Australia’s recent implementation of the “Right to Disconnect” legislation marks a significant shift in workplace dynamics, emphasising the importance of employees’ work-life balance. Effective from August 26, 2024, for larger employers, and extending to small businesses from August 26, 2025, this law allows employees to refuse work-related communications outside their regular working hours unless such refusal is deemed unreasonable.

While the legislation aims to protect employees’ right to ‘switch-off’ from work, it also introduces potential risks for employers if not properly managed.

Here are six critical areas employers need to be vigilant about to mitigate business risks and employee challenges:

1. Non-Compliance with the Legislation

Employers must ensure strict adherence to the new regulations as failure to comply can lead to significant legal repercussions. The legislation states that the first step is for parties to attempt to discuss and resolve the right to disconnect disputes at the workplace level before bringing the dispute to the Fair Work Commission (FWC). While as of writing this piece, we are yet to see any such cases being brought before the FWC, it will likely just be a matter of time.

The FWC has the authority to issue orders preventing employers from taking disciplinary action against employees who reasonably refuse after-hours contact. Non-compliance can result in substantial fines, with penalties reaching 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.

2. Inadequate Policy Development and Communication

The introduction of the right to disconnect necessitates the development of clear policies outlining expectations regarding after-hours contact and communication.   

For many employers this will vary by department, roles, branches and locations. 

Employers should review and ensure that current practices and policies to align with the legislation, as well as ensure that managers and staff understand the new regulations and what it means for their particular work and operations.  As always, clear communication ensures that all employees understand their rights and responsibilities, reducing the risk of misunderstandings and potential disputes.

3. Overlooking the ‘Reasonableness’ Criteria

The legislation specifies that an employee’s refusal to engage in after-hours communication must not be unreasonable. Factors determining reasonableness include the nature of the contact, the level of disruption to the employee, the employee’s role and responsibilities, level of compensation, personal circumstances, and any legal requirements for contact. Employers must carefully assess these factors before expecting after-hours engagement to avoid potential disputes and ensure compliance with the law.

4. Neglecting Mental Health and Well-being Considerations

Continuous after-hours communication can lead to employee burnout, stress, and mental health issues. The new legislation acknowledges the importance of mental well-being by allowing employees to disconnect. Even when it may be ‘reasonable’ or necessary that an employee needs to remain connected outside of standard work hours. Employers would be remiss to ignore the impact that after-hours contact may be having on its peoples’ mental health.  By promoting a culture that respects its peoples’ personal ‘disconnection’ time, overall productivity and job satisfaction is usually enhanced.

5. Failing to Address Industry-Specific Exemptions

The right to disconnect law contains important exemptions where after-hours contact would be considered reasonable, such as in certain industries and occupations where monitoring work-related communications is necessary. Employers should identify if such exemptions apply to their operations and ensure that employees are appropriately compensated for after-hours availability. Clear guidelines should be established to delineate when after-hours contact is permissible and ensure that employees are aware of these conditions.

6. Potential Impact on Business Continuity and Client Expectations

In industries where timely responses are crucial—such as healthcare, emergency services, finance, and global businesses with different time zones—the right to disconnect could create operational challenges. Employers must ensure that business continuity is not compromised while respecting employees’ rights. If after-hours communication is essential, employers should implement clear protocols, designate on-call employees with appropriate compensation, and manage client expectations. Failing to do so could lead to service delays, reputational damage, and loss of business.

While Australia’s right to disconnect legislation aims to protect employees’ personal time, in many cases, it has and will continue to require employers to proactively adjust their day-to-day operations, business practices and client expectations.

By developing clear policies, understanding the reasonableness criteria, considering mental health implications, recognising industry-specific exemptions, and planning for business continuity, employers can mitigate risks and foster a positive work environment that respects both legal obligations and employee well-being.
Nick Hedges is the founder of Resolve HR, a Sydney-based HR consultancy specialising in providing workplace advice to managers and business owners. He recently published his first book, “Is Your Team Failing Or Kicking Goals – Take Control of Your People & Their Performance”. It is a practical response to the most pressing HR challenges, which can be found at https://resolvehr.com.au/.


Disclaimer: The contents written do not constitute legal advice and do not cater for individual circumstances.   The information contained herein is not intended to be a substitute for legal advice and should not be relied upon as such.