Right to Disconnect: Employee Wellbeing vs. Operational Readiness

Twelve months have elapsed since Australian businesses first grappled with the Right to Disconnect legislation. This August marked a significant expansion, with protections now extending to approximately 97% of SMEs, including those with fewer than 15 employees who previously operated outside its scope.

The legislation empowers employees to decline unreasonable contact—whether telephonic, textual, or electronic—beyond their contracted hours without fear of reprisal. For business leaders, this represents both an opportunity to enhance workplace culture and a challenge to operational agility.

Why it Matters

Burnout and blurred boundaries between work and personal life are ongoing concerns in today's always-on culture.

Extra 281 unpaid minutes

Studies from last year revealed employees commonly worked an extra 281 unpaid minutes after hours each week. A University of Queensland study demonstrated that pandemic-induced remote working arrangements exacerbated this phenomenon, intensifying stress levels and eroding the crucial demarcation between professional and personal spheres.

33% drop in unpaid after-hours works

Meanwhile, early data reveals a 33% drop in unpaid after-hours work—from 5.4 to 3.6 hours per week—since the law came into effect, signalling a real impact on employee wellbeing.

But Not Everyone Agrees

Not surprisingly, the rollout sparked a fierce debate. Some small business owners—like IGA grocer Tanya Zesers—warn the legislation will strain operational flexibility. In dynamic sectors where scheduling adjustments are commonplace (retail, hospitality, construction, and healthcare) rigid communication restrictions may inadvertently impede business responsiveness.

The Small Business Ombudsman echoed those concerns, highlighting increased compliance complexity and potential legal exposure for enterprises dependant upon agile communication frameworks. These concerns reflect legitimate operational challenges that many Australian SMEs face daily.

Balancing Availability with Boundaries

Industry experts acknowledge that small business success often hinges upon after-hours accessibility—particularly in sectors where rapid response capabilities distinguish market leaders from competitors. However, the legislation doesn't prohibit all out-of-hours contact; rather, it mandates that such communication be "reasonable."

This reasonableness test considers several factors: the urgency of the matter, role-specific responsibilities, appropriate compensation arrangements, and individual circumstances. The key lies in establishing clear protocols that respect employee boundaries while preserving operational capability.

Leading business advisers, including those at the Small Business Ombudsman, emphasise the critical importance of transparent communication protocols and proactive discussions to prevent misunderstandings and circumvent potential compliance complications.

Wellbeing Gains and Emerging Compliance Realities

According to recent insights from Robert Half, the Right to Disconnect is yielding tangible workplace benefits:

• 77% of employers report enhanced employee wellbeing and work-life balance
• Employers are responding by implementing clearer communication rules, manager training, updating policies, and reassigning workloads or deadlines to respect off-hours boundaries

Despite such gains, ongoing scrutiny remains. Surveys show that 65% of employees continue to receive after-hours contact even though 74% of employers support the law, highlighting implementation gaps and potential for disputes.

Finding Balance in the "Always-On" Age

Australia's Right to Disconnect legislation presents SMEs with an opportunity to enhance workplace culture while maintaining competitive operational capability. Organisations that thoughtfully embed these principles into their operational frameworks can simultaneously boost employee wellbeing and safeguard business responsiveness.

The most successful implementations balance respect for personal boundaries with operational excellence—recognising that sustainable business success increasingly depends upon engaged, well-rested employees who can perform at their peak during contracted hours.

In an era where talent retention and workplace satisfaction significantly impact business outcomes, the Right to Disconnect may prove to be less regulatory burden and more strategic advantage.

---

Important notice 

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product. 

Information is current as at the date the article is written as specified within it but is subject to change. BICS make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of BICS.