Australia’s “Right to Disconnect” Now Applies to Small Businesses. Here’s What That Means
Today, Tuesday, 26 August 2025, the long‑anticipated Right to Disconnect law officially takes effect for small businesses in Australia (those with fewer than 15 employees). For the past year, this policy has already applied to larger businesses.
What Is the Right to Disconnect?
It’s a legally protected workplace right that allows employees to refuse monitoring, reading, or responding to work-related communications (emails, calls, texts, etc.) outside their regular working hours, unless the refusal is deemed unreasonable.
Importantly:
Employers can still contact staff after hours, but employees cannot be penalised for not responding to unreasonable requests.
Reasonableness is judged on a case-by-case basis, considering factors like urgency, role seniority, means of contact, disruption level, and personal circumstances.
What’s New Today?
From today:
Small business employees can officially invoke their Right to Disconnect.
It includes contact from third parties (like suppliers or clients) not just employers.
Fair Work has rolled out videos and resources to help small business employers and staff understand and implement the new rules.
What Counts as "Unreasonable"?
Factors that influence what's considered unreasonable include:
Reason for contact (e.g., emergencies vs. routine questions)
Method and timing (e.g., urgent SMS vs casual social chat)
Role expectations (senior managers on call vs standard staff)
Disruption level and whether the employee is compensated for out-of-hours work.
Personal responsibilities, like family duties.
If there's a disagreement that can't be resolved internally, either party can escalate the issue to the Fair Work Commission (FWC), which can issue binding orders.
Legal Risks for Employers
Penalties for not respecting the Right to Disconnect are serious — up to $93,900 for companies, and $18,780 for individuals. Plus, it's a protected workplace right, meaning adverse actions (like demotion or dismissal) linked to exercising this right may lead to legal claims.
What Small Businesses Can Do Today
Review your after-hours communication practices — when and why are staff contacted after hours?
Set clear expectations with your team — what’s truly urgent and what can wait?
Update policies — formalise these boundaries in written or digital guidelines.
Use the Fair Work Ombudsman’s resources, such as their new videos with multi-language subtitles.
Have a conversation — discuss reasonable contact norms with your people today, not later.
Need help keeping your books clean while the rules keep changing?
At Masttocs Bookkeeping Services, we understand that legislation like the Right to Disconnect adds another layer of complexity for small business owners. While you’re focused on adapting to new workplace expectations, we’ll make sure your financial records, payroll, and BAS reporting stay accurate, timely, and compliant.
