The right to disconnect: what employers need to know

Under new legislation that came into effect in August 2024, employees now have the “right to disconnect” from their workplace after hours.

So what does this means for employers? According to employment expert and Managing Director of Employee Matters Natasha Hawker, every business in Australia with 15 or more staff is at risk for failing to meet their right to disconnect obligations.

“Ignorance is no excuse — employers must take action to comply now,” Hawker said.

What is the right to disconnect?

Under the new industrial legislation, eligible employees have the right to disconnect with their employer outside of work hours, unless their refusal is unreasonable. It means an employee can refuse to monitor, read or respond to contact from an employer or a third party outside of working hours.

Penalties for non-compliance can reach up to $19,000 per breach for individuals and increase to $90,000 per breach for companies under the Closing Loopholes Bill, which covers the right to disconnect.

In a recent case, the NSW Personal Injury Commission ordered an employer to pay a return-to-work coordinator 10 months’ back pay plus ongoing compensation for harassment during the employee’s personal leave.

The employee’s supervisor repeatedly contacted them via calls and emails, and even suggested involving the police for a welfare check. These actions were deemed unnecessary and provocative, especially given the employee’s role in ensuring safe and successful returns to work.

“Under the new right to disconnect laws, such a case could lead to fines,” Hawker said.

So what should employers be doing?

According to Hawker, Australian businesses should urgently seek expert HR advice to update their internal policies to cover the right to disconnect legislation. This includes training and guidance on what constitutes reasonable and unreasonable contact outside of work hours.

“Each business needs to determine what works best for their own circumstances, respecting employee rights while maintaining the desired flexibility for both parties,” she said.

“Implementing these changes offers an opportunity to improve workplace communication, attract and retain top talent, and enhance employee engagement by reducing potential psychological risks.

“These risks are known in the industry as ‘psychosocial hazards’. The alternative is non-compliance, the risk of hefty fines, low morale, decreased productivity, and poor employee retention.”

Top tips for employers:

• Educate yourself about the Closing Loopholes Bill.
• Understand your obligations as an employer.
• Use this opportunity to foster workplace communication.
• Seek expert advice to update and implement your internal policies.
   

Image credit: iStock.com/Anut21ng. Stock image used is for illustrative purposes only.