What Small Businesses Need to Know Before 25 August 2025

The Right to Disconnect laws came into effect on 26 August 2024 for non-small businesses and will extend to small businesses (fewer than 15 employees) from 26 August 2025.

What is the right to disconnect?

The legislation gives the employees the right to refuse to monitor, read or respond to contact (or attempted contact) outside of their working hours, unless doing so would be unreasonable. This applies to contact (or attempted contact) from an employer or third party. Third party could include clients, suppliers, employee from other businesses or members from the public.

The law does not prevent employers from reaching out after hours, but it does encourage workplaces to set clear expectations about out-of-hours communication.

📌  Resource: Tips for discussing out of hours contact – Fair Work Commission

When is an employee’s refusal unreasonable?

There are circumstances where it would not be reasonable for an employee to refuse out-of-hours contact. When determining whether a refusal is unreasonable, the following factors must be considered (among others):

o   The reason for contact

o   Whether the employee is compensated for being available or working additional hours outside their ordinary hours

o   The nature of the employee’s role and level of responsibility

o   The employee’s personal circumstances, including family or caring responsibilities

It will also be considered unreasonable for an employee to refuse if the contact (or attempted contact) is required by law.

📌  Resource: Right to disconnect – Fair Work Ombudsman – provides further guidance and practical examples of what may be considered reasonable.

How Small Businesses Can Ensure Compliance from 26 August 2025

From 26 August 2025, employees of small businesses will have the right to refuse contact or attempted contact outside of their working hours, unless the refusal would be considered as unreasonable.

1.      Understand the impacts on your business

Depending on the nature of your operations, consider when (if ever) it is necessary to contact employees outside of their working hours. Businesses may need to contact employees to fill roster vacancies or there is an urgent client job that requires employees to work overtime.

By identifying where out-of-hours contact might occur, you can then plan compliant processes that minimise disruption.

2.      Communicate with employees about the changes 

Consult with employees about the changes and maintain open dialogue. Provide a clear explanation of the legislation and how it impacts the workplace, then work towards a mutual agreement on how out-of-hours contact will be managed. You might hold a toolbox talk or team meeting to discuss the changes, followed by a summary email to ensure everyone is on the same page.

3.      Align workplace documents with legislation changes

Review employment contracts, position descriptions, policies and procedures to make sure they are consistent with the right to disconnect. This helps employees clearly understand their rights, while also setting out expectations for both employers and employees on how out-of-hours contact will be managed.

Key Takeaway

From 26 August 2025, small businesses will also need to comply with the right to disconnect. Taking steps now to review contracts, policies, and communication practices will help ensure compliance, reduce risk, and support a positive workplace culture.

For tailored guidance, contact People & Culture Innovations at info@peopleandcultureinnovations.com.au.