UPDATE: Only 18 days remain until Australia's Right to Disconnect laws extend to small businesses on August 26, 2025. If you employ fewer than 15 people, this legislation will fundamentally change how you can contact your employees outside of working hours.

This isn't just another compliance box to tick – it's a significant shift that could expose your business to penalties if you're unprepared. The good news? With the right approach, you can ensure compliance while maintaining operational flexibility.

What Exactly is the Right to Disconnect?

Under section 149F of the Fair Work Act 2009, the Right to Disconnect gives employees the legal right to refuse to monitor, read, or respond to contact from their employer outside their agreed working hours – unless that refusal is unreasonable.

This applies to all forms of contact including:

Phone calls and text messages
Emails and instant messages
Social media communications
Any other form of digital contact

The Small Business Timeline

August 26, 2024: Law took effect for larger employers (15+ employees)
August 26, 2025: Extension to small businesses (fewer than 15 employees)
Today (August 8, 2025): 18 days remaining for small business compliance

Understanding "Reasonable" vs "Unreasonable" Contact

The legislation hinges on what constitutes reasonable contact and reasonable refusal. Here's what you need to know:

When Out-of-Hours Contact is Considered REASONABLE:

✅ Urgent safety notices or emergencies

Workplace safety alerts
Critical system failures affecting operations
Emergency situations requiring immediate attention

✅ Employees with specific on-call arrangements

Properly compensated availability periods
Clear contractual obligations for emergency response
Senior roles with documented after-hours responsibilities

✅ Contact required by law

Legal notices and compliance requirements
Mandatory safety communications
Regulatory reporting deadlines

When Employee Refusal is Considered UNREASONABLE:

An employee's refusal to respond may be unreasonable if:

They're adequately compensated for availability
The contact relates to agreed on-call duties
It's legally required communication
It involves genuine emergencies within their role scope

Real-World Examples from Fair Work Guidance:

❌ UNREASONABLE CONTACT: Selim, a consultant, finishes work at 4:00 PM. His manager contacts him at 4:30 PM about urgent client work while he's caring for his children. This is likely unreasonable given his personal circumstances and minimal time gap.

✅ REASONABLE EXPECTATION: Elizabeth, an acting manager receiving additional compensation, may unreasonably refuse a 3-hour out-of-hours task critical to project completion when she's been properly compensated and given advance notice.

Compliance Checklist: 18 Days to Readiness

IMMEDIATE ACTIONS (Next 7 Days)

□ Audit Your Current Practices

Document all instances of after-hours contact over the past month
Identify patterns of weekend, evening, and holiday communications
Review existing employment contracts for relevant clauses

□ Determine Your Business Status

Count all employees (including casuals and part-time staff)
If you're close to the 15-employee threshold, plan for potential changes

□ Review Modern Awards and Enterprise Agreements

Check if your relevant awards now include Right to Disconnect terms
Identify any existing provisions about after-hours contact

POLICY DEVELOPMENT (Days 8-14)

□ Draft Right to Disconnect Policy Your policy must address:

Definition of working hours for each role
Circumstances constituting reasonable out-of-hours contact
Compensation arrangements for legitimate on-call duties
Escalation procedures for genuine emergencies
Employee rights and complaint procedures

□ Update Employment Contracts Include clauses covering:

Right to disconnect provisions
Specific on-call arrangements with compensation details
Clear definition of roles requiring after-hours availability
Emergency contact protocols

IMPLEMENTATION (Days 15-18)

□ Staff Training and Communication

Conduct team meetings explaining the new rights and obligations
Train managers on appropriate after-hours contact protocols
Distribute updated policies and contracts

□ Establish New Procedures

Create emergency contact escalation procedures
Set up compensation systems for legitimate after-hours work
Implement communication tracking for compliance purposes

Industry-Specific Considerations for Service Businesses

Service businesses often face unique challenges with the Right to Disconnect. Here's how to navigate them:

Hospitality and Retail

Roster changes: Provide adequate notice and compensation for last-minute shifts
Emergency coverage: Establish clear on-call arrangements with appropriate loading
Seasonal demands: Plan staffing levels to reduce after-hours contact needs

Professional Services (Consulting, Accounting, Legal)

Client demands: Set clear boundaries with clients about response times
Project deadlines: Plan workloads to minimize weekend and evening work
Senior roles: Define executive and senior consultant availability expectations

Healthcare and Aged Care

Emergency protocols: Maintain clear procedures for genuine emergencies
On-call arrangements: Ensure proper compensation for availability requirements
Regulatory compliance: Balance legal obligations with employee rights

Compensation Requirements for On-Call Arrangements

If your business requires employees to be available outside normal hours, you must provide appropriate compensation:

Types of Compensation

Availability allowances: Payment for being contactable
Call-back rates: Higher rates for actual work performed
Time-in-lieu: Compensatory time off
Overtime loading: Premium rates as per award conditions

Documentation Requirements

Clear written agreements about availability expectations
Specific compensation rates and calculation methods
Record-keeping for all after-hours contact and work
Regular review of compensation adequacy

Penalties and Enforcement: What's at Stake

Non-compliance with Right to Disconnect laws can result in:

Fair Work Ombudsman Actions:

Compliance notices requiring immediate rectification
Infringement notices with financial penalties
Court orders for back payment of wages and compensation

Employee Claims:

General protections claims for adverse action
Disputes through the Fair Work Commission
Potential compensation for contravened rights

Reputational Risks:

Public enforcement actions
Employee relations damage
Industry reputation impacts

Required Updates to Your Documentation

Employment Contracts Must Include:

Right to disconnect clause referencing section 149F
Definition of reasonable out-of-hours contact for the role
Compensation arrangements for legitimate availability requirements
Emergency contact protocols and escalation procedures

Workplace Policies Should Address:

Company communication guidelines
Manager training on appropriate after-hours contact
Employee complaint and resolution procedures
Regular policy review and update processes

Award and Enterprise Agreement Alignment:

Ensure consistency with relevant modern award provisions
Update enterprise agreements at next negotiation period
Seek Fair Work Commission guidance on interpretation questions

Your Action Plan: Next 18 Days

Week 1 (Days 1-7): Assessment and Planning

Complete compliance audit
Draft initial policies
Begin legal document review

Week 2 (Days 8-14): Policy Development

Finalize Right to Disconnect policy
Update employment contracts
Prepare staff training materials

Final Week (Days 15-18): Implementation

Conduct staff training sessions
Distribute new policies and contracts
Establish monitoring and compliance procedures

Common Mistakes to Avoid

❌ Assuming "urgent business needs" override employee rights

Business demands alone don't make after-hours contact reasonable

❌ Failing to compensate for legitimate on-call arrangements

Availability expectations must be properly compensated

❌ Not documenting emergency procedures

Clear, written emergency protocols protect both parties

❌ Ignoring employee personal circumstances

Caring responsibilities and personal situations affect reasonableness

❌ Treating all roles identically

Senior positions may have different expectations with appropriate compensation

Beyond Compliance: Building a Positive Workplace Culture

Smart businesses will see Right to Disconnect as an opportunity to:

Improve employee wellbeing and retention
Enhance productivity during working hours
Demonstrate commitment to work-life balance
Attract quality talent in competitive markets
Reduce burnout and associated costs

Ready to Optimize Your Workplace Compliance?

Don't navigate the complex world of Australian employment law alone. Our experienced team at D & Y Practice is here to help you implement Right to Disconnect compliance while maintaining operational efficiency.

Book a consultation today to review your current practices, update your policies, and ensure your business is fully compliant by August 26, 2025.

Our employment law specialists can help you:

Audit your current workplace practices
Draft compliant policies and contract updates
Design fair compensation arrangements for on-call duties
Implement staff training programs
Establish monitoring and compliance procedures

Time is running out – call us today to secure your compliance before the August 26 deadline.

Disclaimer: This information is general in nature and should not be considered as professional legal or employment advice. Employment laws and regulations can change, and individual circumstances vary. Always consult with a qualified employment lawyer or HR professional before making significant policy changes. The D & Y Practice accepts no liability for any loss or damage arising from reliance on this information.

🚨 Right to Disconnect: 18 Days to Compliance for Australian Small Businesses