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August

Employee’s right to disconnect could boost productivity and retention

Catherine Birchall

Did you know that in 1856, Victorian stonemasons won a world-first fight, and demanded that they would work no more than 8 hours a day? Nowadays, Aussies are putting in long and excessive working hours. With the development of digital tools and flexible working models, being constantly contactable is now the norm for a lot of workplaces.

But now Aussies will soon have the right to disconnect after hours, with the hope of combating the growing, excessive work culture.

Changes to workplace laws due to come into effect on August 26 means that employees of large companies (those with 15 employees or more) can refuse to monitor, read or respond to contact or attempted contact from their employer or a third party if the contact is work-related.

However, there is an exception to this new rule if the employee’s refusal is deemed ‘unreasonable’. For example, not answering the phone if the contact is required by law would be deemed unreasonable. Factors that help determine if a refusal is unreasonable include:

  • the reason for the contact
  • whether the employee is paid extra/compensated
  • the nature of the employee’s role and level of responsibility
  • the employee’s personal circumstances, including family or caring responsibilities.

Some believe these changes will hurt productivity, however, a long-running survey of 24,000 workers found the right to not be on call 24/7 boosted staff retention by around 40 percent*. The study tracked workers across a range of companies over a five-year period, and found that businesses that implemented the ‘do not disturb’ philosophy held onto their staff for longer.

It’s important to note that, whilst these changes allow employees the right to refuse to respond to calls and emails, it does not prohibit an employer sending emails or messages outside of work hours.

Companies in breach of these rules could be liable to civil fines of up to $19,800.

These changes apply to large businesses. Small business employers with less than 15 staff will be required to comply on August 26, 2025.

Read more on the Fair Work website.

*https://www.news.com.au/finance/work/right-to-disconnect-laws-can-boost-retention-40-per-cent-research-finds-ahead-of-new-laws/news-story/153735f5c325d4d3ef80f6be78d6e55f

About the Author

Catherine is the Founder of Money101. Having pioneered the development of digital financial education content in Australia in the early 2000s, she founded Money101 in 2004. Catherine remains a passionate evangelist for financial wellbeing and education.

Education: MBA, Business Administration and Management, General; Diploma of Financial Services, Financial Planning; B.A. Communications, Liberal Studies

Want to support your staff with a market-leading digital financial wellbeing program or leverage money education to attract and retain clients? Contact Money101 today!

General non-advice disclaimer

The information contained in this article is of a general nature, is provided for education purposes only and does not constitute financial advice. It has been prepared without taking into account your particular financial circumstances or objectives. You should consider the appropriateness of the information as it relates to you. You may wish to consult an adviser before you make any decisions relating to your financial affairs.

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