Imagine this: You’ve just wrapped up a long day. Dinner’s on the table.Then—ping—a late-night text from an employee. Another ping—an email about tomorrow’s meeting.
For small business employers (that’s any business with fewer than 15employees), this probably sounds all too familiar. When you’re running a lean team, it’s easy for work to spill into after-hours life. But new workplace laws are about to change that.
From 26 August 2025, small business employees will have the legal right to disconnect—meaning they can ignore work calls, emails, and messages outside of hours (unless there’s a solid reason they can’t).
So, what does that mean for start-ups and small businesses? Let’s break it down.
What Is the Right to Disconnect?
It’s exactly what it sounds like: employees will be able to decline to monitor, read and respond to work-related communication outside their usual work hours—unless their refusal is unreasonable.
What counts as “unreasonable”? Relevant factors include:
- The reason for the contact (urgent problem or just a thought cloud?).
- Whether the employee is paid extra for being on-call or working additional hours.
- Their role (manager vs admin) and responsibilities (what are they employed to do?).
- Their personal situation (family, caregiving duties, etc.)
These new rules are part of the "Closing the Loopholes" amendments to the Fair Work Act.
When Do Small Businesses Need to Comply?
These rights kick in for employees of businesses that have fewer than 15 employees (also known under the law as “small businesses”) on 26 August 2025.
By the way, if your business has 15 or more employees, these rights are already in play.
What If an Employee Refuses After-Hours Contact?
Picture this: it’s 9:45PM on a Friday evening. You’re on the couch, scrolling through Netflix, but
something’s bugging you. That client order—was it confirmed? You fire off a quick text to Trix the account manager: “Hey, did that invoice go out today? We need it so the client can sign off on the order.”
Silence.
By 10:15PM, you’re debating a second message ...but then you remember—the right to disconnect. Trix isn’t ghosting you. She’s probably mid-wine and cheese, living her best life.
So, is she allowed to ignore you? Yep. Unless it’s an emergency (think “The website just crashed and your business is taking orders for 1 more hour” or “The client will be fined if this doesn't get done right away”).
Trix is off the clock.
How to avoid this? Set clear on-call expectations – including in your employment contracts, Staff manuals and company processes and procedures.
You and an employee don't agree on whether a refusal is unreasonable? Here’s how disputes will be handled:
1. Try to resolve it in-house. A quick chat can often clear up misunderstandings.
2. If that fails, the Fair Work Commission can get involved. The Commission has the authority to make orders or manage the dispute through alternative resolution methods.
The key? Clear expectations. If you have roles that require after-hours availability, make sure contracts and policies reflect that.
What Founders and Business Owners Should Do Right Now
Business owners and founders need to strategise (per Seth Godin). Leave this until August 2025, and you might be scrambling instead of strategising. So here's how to get ahead:
- Review employment contracts. If certain employees need to be on-call, their employment contracts should reflect it.
- Update workplace policies. Put clear guidelines in place for after-hours communication. Review Staff manuals and processes and procedures.
- Train managers (or yourself). If you have a leadership team, make sure everyone understands what’s reasonable and what’s not.
- Check Awards. By 26 August 2024, every award will include a right to disconnect clause. Review the awards that are relevant to your employees and ensure your business aligns.
This law isn’t just about compliance—it’s about protecting your business from potential disputes while keeping employees engaged andmotivated.
Plan now. Avoid headaches later.
Think these new laws may apply to your business? Call us on (02 8880 9383) or email us at metis_at_metislaw.com.au for a consultation on how these new laws may affect your business and how we can help you stay ahead of the curve.