On 26 August 2024, Australia introduced a significant workplace reform: employees of non‑small‑business employers gained the Right to Disconnect, which allowed the employees to refuse work-related communications, including calls, messages and social media, outside working hours as long as the refusal was not unreasonable. This reform under the Fair Work Act marked a key promotion of personal time and mental well-being.
From 26 August 2025, this crucial right now also applies to employees of small business employers (those with fewer than 15 employees). The expansion completes the national ‘Right to Disconnect’ rollout and raises fresh challenges and opportunities for smaller businesses. Therefore, it is essential that all small business employers implement the reform and respect employees’ right to disconnect.
Right to Disconnect
Employees can now refuse to monitor, read, or respond to work communications outside working hours, unless such refusal is “unreasonable”.
Unreasonable
Refusal may be considered unreasonable depending on a series of factors, such as:
- The urgency and reason for contact
- The method of contact and disruption caused
- Whether the employee is compensated for being on-call or working extra hours
- The employee’s role, responsibilities, and personal circumstances (e.g., caring duties)
- Compensation beyond pay, e.g., additional leave or flexible arrangements
- Legal necessity (employees cannot refuse contact required by law)
Challenges to Small Businesses
Whilst the Right to Disconnect encourages healthier boundaries and employee well-being, there are some challenges that businesses, especially small businesses, may face:
- Workplace Disputes
- Issues with Compliance of Right to Disconnect, especially for Small Businesses due to lack of dedicated HR support
- Effect on Productivity, especially in sectors requiring urgent responses
- Requirement for New Workplace Policies and Processes to ensure the Productivity and Communication Channels are managed effectively within the limits and bounds of the law.
Enforcement By Fair Work Commission
The right to disconnect is a workplace right under general protection laws. This means employers are prohibited from taking adverse action against employees who reasonably exercise the workplace right to disconnect.
Importantly, the new laws do not mean that employers cannot contact an employee outside of their working hours or that they will be acting unlawfully by doing so; rather, there is now to be a determination about whether an employee’s refusal is unreasonable or not.
Disputes must first be resolved within the workplace. If unresolved, the Fair Work Commission can intervene and issue stop orders that prevent:
- Employers from taking adverse action,
- Employees from refusing reasonable contact, or
- Either party from repeating harmful conduct.
Upon breach of the FWC Orders, fines of up to $18,780 for individuals and $93,900 for businesses may follow.
What Should Small Business Do?
- Review of after-hours communication practices
Define which roles may need out-of-hours availability (e.g., store manager on call) versus those that don’t. - Discuss expectations with employees
Set clear boundaries: when are contacts expected, and when can staff disconnect? - Ensure fair compensation
If employees are expected to be available after hours, consider overtime, penalty rates, additional leave, or flexibility. - Define contact channels
Clarify when it’s acceptable to get in touch and via which medium, phone, text, email, etc. - Implement Appropriate policies and Training of Employees
Update employment contracts, workplace policies, and job descriptions. Train managers and staff on these changes. - Periodic Reviews
Revisit arrangements if hours, roles, or business needs shift.
With thoughtful policy, clear expectations, and regular communication, small businesses can embrace these changes to nurture healthy work-life boundaries, which would enable them to strengthen their culture and performance in addition to the compliance with the law.
Casual Conversion
Employee choice’ pathway
From 26 August 2025, eligible casual employees in small businesses can notify their employer in writing of their intention to change to full-time or part-time employment. This is called the ‘employee choice’ pathway. Employers no longer need to instigate conversion to permanent employment. A casual employee can also choose to remain casual.
Under the new pathway, a casual employee can give written notice to their employer to convert to permanent employment if they have:
- been employed for at least 6 months; and
- they believe they no longer meet the requirements of the new casual employee definition.
Employers who receive a notice of casual conversion must consult with the employee about their request and ensure a written response is provided within 21 days.
If an employer accepts the request, their written response must include:
- what the employee’s classification will be i.e full or part time,
- what the employee’s hours of work will be; and
- when their permanent employment will commence.
An employer can only refuse a conversion request if:
- the employee still meets the definition of casual employee;
- there are fair and reasonable business grounds for not accepting the notification, example:
- substantial changes would be required to the way in which work in the employer’s business is organised;
- there would be significant impacts on the employer’s business operations; or
- substantial changes to the employee’s employment conditions would need to be made to ensure that the employer does not contravene a fair work instrument that would apply to the employee as a permanent employee; or
- accepting the change would mean the employer will not comply with a recruitment or selection process required by Commonwealth, State or Territory laws.
Where an employer and employee are unable to reach agreement as to whether permanent employment is appropriate and attempts to resolve the dispute at the workplace level are exhausted, the dispute can be escalated to the Fair Work Commission. While the Commission will initially seek to resolve the dispute by informal means, the Commission can arbitrate the dispute and a binding decision can be made.
Do check out our detailed blog to explain the Right to Disconnect on the BetterHR website.
Do not forget to check out our basic Right to Disconnect Policy template. Depending on your level of subscription, the policy is available on the BetterHR Portal or for purchase in the BetterHR Shop.
If you need further information or assistance, please contact BetterHR’s experienced HR consultants, and qualified lawyers on 1300 659 563 or visit: Subscribe to BetterHR.
