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What is the Right to Disconnect?

Entitlements

16 July 2025 (Last updated 3 Sept 2025)

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Forming part of the Fair Work Act closing loopholes 2.0 legislation, the right to disconnect came into effect for large businesses in August 2024. For small businesses (fewer than 15 employees) the same right to disconnect law came into effect on 26 August 2025.

The right to disconnect means eligible employees in Australia can refuse to monitor, read, or respond to work-related communication outside of normal working hours unless it’s considered unreasonable. This can be communication from their employer or a third party such as a client, supplier.

Meet with your employees

It’s important to meet with all your employees in a group then talk with them individually to discuss the new right to disconnect laws.

Use these meetings to:

  • Ensure everyone is familiar with the new legislation.
  • Explain your oblations as an employer, and the rights of your employees under the new laws.
  • Set clear boundaries and expectations relating to after-hours communication.
  • Consider the needs of your industry and business compared with your employees’ personal responsibilities outside of work.

Work through situations

Discuss with employees an emergency scenario where after hours contact and an expected response could be reasonable. And a situation when it may not be reasonable. Decide what could wait until the next working day and what requires an after-hours response.

  • The building is on fire-urgent response.
  • We’re almost out of printer paper and ink you need to place an order-can wait until the next workday.

It's also important to communicate these boundaries with external stakeholders (such as clients or suppliers) to set expectations regarding responses from employees out of hours.

Pickup, pickup, pickup

Discuss and agree with your employees how you will contact them after hours (call, text, teams chat, email). Then decide how to communicate if the reason for contact is urgent and needs a response or can wait until the next working day.

A call or text message beginning with URGENT requires a response as soon as possible. An email means it can wait until the next day.

Once agreed, ensure you adhere to the agreed contact methods.

Out of hours contact. It’s in your contract

Depending on the role of an employee, out of hours contact may already be included in their employment contract. This could be industries that require employees to be on-call (healthcare workers or emergency tradespeople). In these positions, employees should expect out of hours contact and may be compensated as part of their salary. It’s important to review your enterprise agreement, modern award or employment contract for entitlements.

Regular catchups

Adjusting to the right to disconnect laws may take some time and a bit of trial and error to get used to in the early stages. Schedule regular catchups with your employees to learn what’s working and where changes need to be made.

It's time we updated our documentation

Review employment contracts to determine if they need updating and review existing flexibility arrangements to ensure they are current. Prepare or update policies relating to the use of work technology outside ordinary working hours. You should also revise, and if necessary, amend employee position descriptions to ensure they clearly reflect expectations regarding outside hours contact.

Crisis averted

Business owners that don’t follow the right to disconnect laws can receive severe legal penalties. An employee may also choose to lodge a dispute claim with the Fair Work Commission.

This could result in:

  • Orders to stop unreasonable out-of-hours contact.
  • Resolution of disputes relating to breaches of this right.
  • Penalties for such breaches.

Talking with your employees and having regular reviews can eliminate confusion and ensure everyone understands their obligations.

Last, but not lastly

As a business owner and employer, seriously ask yourself is this really an emergency and how would I feel if I were contacted and interrupted for this situation? As an employee, whether you’re a new junior staff member or a senior manager, it’s important to remember the right to disconnect is not a right to ignore contact.

The right to disconnect laws aim to promote a healthier work-life balance for business owners and employees. Like any new change to business laws adjusting can be difficult and understanding what the changes mean can be confusing. At Peninsula our team of experts are available 24/7 to offer advice and guidance for your business on the right to disconnect.

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