How to prepare for the right to disconnect

The government’s much-anticipated industrial relations reform, The Right to Disconnect, came into effect on 26 August. Under the Closing the Loopholes Act No. 2, businesses with over 15 employees must now enforce the right to disconnect, meaning employees can ignore workplace-related communications outside of business hours. While the change is now enforceable for big businesses, small businesses still have some time to put processes into place. Matt Loop, VP and Head of Asia, Rippling, explains what you need to know.

The good news, for small businesses with fewer than 15 employees, is that these changes will only take effect in August 2025. While this provides some breathing room, preparing now can help avoid headaches down the line. A year can go quickly in business terms, and laws like these tend to impact small businesses harder than their larger counterparts. The next year should act as a blueprint for them to figure out new ways of working.

What is the right to disconnect?

The first step is understanding exactly what the right to disconnect is. By definition, the policy gives employees the legal right to ignore work-related communications outside their regular working hours, unless doing so is deemed “unreasonable”. It’s designed to protect employees’ work-life balance and prevent burnout, reflecting a broader trend towards prioritising employee well-being.

This policy presents unique challenges for small businesses. Small business teams often operate with lean teams and tight budgets, relying on agility and constant engagement to thrive. The structured boundaries imposed by the right to disconnect might seem at odds with the flexibility and spontaneous collaboration that small businesses depend on.

The reality for Australian businesses

If small businesses look to their larger counterparts, Australian businesses are woefully unprepared for the new changes. According to recent research from Rippling, business leaders are still grappling with the implications of the legislation, with less than a third (31%) feeling confident that they fully understand and have the systems in place to comply with the right to disconnect.

The research also showed that, while the majority of business leaders (65%) believe that the right to disconnect will have a positive impact on productivity, just 20% are considering or already implementing the right to disconnect in FY25.

These statistics highlight a significant gap in readiness, and this extends to smaller businesses too. While small businesses have a 12-month window to prepare, the potential impact on operations and compliance should not be underestimated.

European small businesses have faced similar legislation and have found ways to adapt successfully. In France, businesses that embraced these changes reported improved employee well-being and job satisfaction, which ultimately led to higher productivity. Australian small businesses can take a leaf out of their book to ensure a smooth transition.

How small businesses can prepare

The question that remains is, what are the steps that small businesses can take now to mitigate future challenges? Here are key strategies they can take to get a head start:

Establish communication: Clearly define and communicate your policies regarding work-related communications outside regular hours. Ensure your team fully understands and supports these new boundaries to align on expectations.
Build trust: Cultivate an environment of trust where both employers and employees respect the new rules. Flexibility within these boundaries will be crucial to maintaining productivity.
Utilise technology: Invest in tools that support asynchronous communication, enabling team members to collaborate effectively without constant online presence.
Provide education: Prioritise training for both employees and management to understand the new policies and their implications. Collaborative sessions can help establish a shared understanding and commitment.
Leverage experts: Don’t hesitate to seek advice from external consultants who can offer financial, legal, and HR expertise. Their insights can help you identify and address potential compliance risks.

The right to disconnect may present a challenge, but it also offers an opportunity for Australian small businesses to reassess and improve their work culture. European companies have shown that these changes, when managed well, can lead to a more engaged and committed workforce. Australian small businesses now have a chance to embrace these reforms and create a sustainable path to growth and success.

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