{"id":295921,"date":"2025-07-30T11:30:44","date_gmt":"2025-07-29T23:30:44","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=295921"},"modified":"2025-08-20T15:43:16","modified_gmt":"2025-08-20T03:43:16","slug":"right-to-disconnect-for-small-businesses","status":"publish","type":"post","link":"https:\/\/www.reckon.com\/au\/blog\/right-to-disconnect-for-small-businesses\/","title":{"rendered":"Right to Disconnect for Small Businesses"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; _builder_version=&#8221;4.23&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; custom_padding=&#8221;||0px||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;table-contents&#8221; _builder_version=&#8221;4.23&#8243; background_color=&#8221;#f3f2f6&#8243; custom_padding=&#8221;25px||25px||true|false&#8221; sticky_position=&#8221;top&#8221; sticky_limit_bottom=&#8221;section&#8221; sticky_position_tablet=&#8221;top&#8221; sticky_position_phone=&#8221;none&#8221; sticky_position_last_edited=&#8221;on|desktop&#8221; pac_dcm_carousel_specific_module_num=&#8221;0&#8243; border_radii=&#8221;on|24px|24px|24px|24px&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.23&#8243; text_font=&#8221;||||||||&#8221; global_colors_info=&#8221;{}&#8221; background__hover_enabled=&#8221;on|desktop&#8221;][\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; pac_dcm_carousel_specific_module_num=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]The <a href=\"https:\/\/www.reckon.com\/au\/blog\/right-to-disconnect-what-small-businesses-need-to-know\/\">Right to Disconnect<\/a> will take effect for small businesses from 26 August 2025. The new law has been in effect for larger Australian companies for the past year, yet the policy still has proved confusing for employers.<\/p>\n<p>Let\u2019s take a look so your small business is ready for the changes.<\/p>\n<h2>What is the Right to Disconnect?<\/h2>\n<p>The Right to Disconnect is a workplace right that allows eligible employees to decline monitoring, reading, or responding to work-related contact outside of their regular working hours, unless doing so is unreasonable.<\/p>\n<p>Contact is defined as:<br \/>\n<\/br><\/p>\n<ul>\n<li>Phone calls and SMS<\/li>\n<li>Emails<\/li>\n<li>Messaging app software (Slack, Facebook Messenger, Microsoft Teams, etc.)<\/li>\n<li>Social media<\/li>\n<\/ul>\n<h2>How does the Right to Disconnect affect my business?<\/h2>\n<p>[\/et_pb_text][et_pb_code _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; custom_padding=&#8221;|||200px|false|false&#8221; global_colors_info=&#8221;{}&#8221;]<script src=\"https:\/\/fast.wistia.com\/embed\/medias\/upxdlt1vt5.jsonp\" async><\/script><script src=\"https:\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_embed wistia_async_upxdlt1vt5 seo=true videoFoam=false\" style=\"height:500px;position:relative;width:281px\">\n<div class=\"wistia_swatch\" style=\"height:100%;left:0;opacity:0;overflow:hidden;position:absolute;top:0;transition:opacity 200ms;width:100%;\"><img decoding=\"async\" src=\"https:\/\/fast.wistia.com\/embed\/medias\/upxdlt1vt5\/swatch\" style=\"filter:blur(5px);height:100%;object-fit:contain;width:100%;\" alt=\"\" aria-hidden=\"true\" onload=\"this.parentNode.style.opacity=1;\" \/><\/div>\n<\/div>\n<p>[\/et_pb_code][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; admin_label=&#8221;Text&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>The Right to Disconnect for employers means that communication arrangements must be made with employees regarding what is considered reasonable or unreasonable contact outside of working hours.<\/p>\n<h3>Right to Disconnect checklist:<\/h3>\n<p>To get an idea of how the Right to Disconnect affects you as an employer, these considerations need to be made:<\/p>\n<ul>\n<li><strong>Purpose of contact:<\/strong> Is the contact being made work-related, reasonable in the context of the employee&#8217;s role, and\/or urgent?<\/li>\n<li><strong>How contact is made:<\/strong> Is the means of contact appropriate, or is it disruptive?<\/li>\n<li><strong>Employee responsibilities:<\/strong> Is the contact appropriate in the context of the employee\u2019s responsibilities?<\/li>\n<li><strong>Employee remuneration:<\/strong> Is contact part of the employee&#8217;s compensation package?<\/li>\n<li><strong>Employee circumstances:<\/strong> Is contact intruding on the employee&#8217;s personal life\/life responsibilities (caretaker)?<\/li>\n<\/ul>\n<h2>Examples of Right to Disconnect<\/h2>\n<p>To gain a clear understanding of the Right to Disconnect in action, let\u2019s examine three separate scenarios where it is applied.<\/p>\n<p>[\/et_pb_text][et_pb_text admin_label=&#8221;Scenario&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; text_text_color=&#8221;#0a004a&#8221; background_color=&#8221;#eeecff&#8221; custom_padding=&#8221;30px|30px|30px|30px|false|false&#8221; border_radii=&#8221;on|20px|20px|20px|20px&#8221; box_shadow_style=&#8221;preset2&#8243; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Scenario one: Nurse<\/h3>\n<p>Jessie, a registered nurse at a public hospital in Brisbane, has finished her shift at 8:00 pm. Later in the evening, Jessie receives a work group text asking for volunteers to cover a shift the next day due to an unexpected absence.<\/p>\n<p>After reading the text, Jessie does not respond as she is off duty and taking care of her children the next day.<\/p>\n<h4>Right to Disconnect: Reasonable<\/h4>\n<p>Jessie is within her rights to ignore the message unless it was an emergency or an obligation of her employment.<\/p>\n<p>[\/et_pb_text][et_pb_text admin_label=&#8221;Scenario&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; text_text_color=&#8221;#0a004a&#8221; background_color=&#8221;#ffeeed&#8221; custom_padding=&#8221;30px|30px|30px|30px|false|false&#8221; border_radii=&#8221;on|20px|20px|20px|20px&#8221; box_shadow_style=&#8221;preset2&#8243; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Scenario two: Store employee<\/h3>\n<p>Mark is an employee at a bottleshop who works nights. At the end of their shift, they leave the store and head home. An hour outside of their shift, they receive a text from the bottleshop owner stating that the store alarm is sounding because the entrance has been left unlocked.<\/p>\n<p>Mark has turned his phone on silent and is not responding.<\/p>\n<h4>Right to Disconnect: Unreasonable<\/h4>\n<p>Due to Mark\u2019s employee responsibilities \u2014 closing and securing the store is part of their role \u2014 this would be considered an unreasonable response and does not give them the Right to Disconnect.<\/p>\n<p>[\/et_pb_text][et_pb_text admin_label=&#8221;Scenario&#8221; _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; text_text_color=&#8221;#0a004a&#8221; background_color=&#8221;#eeecff&#8221; custom_padding=&#8221;30px|30px|30px|30px|false|false&#8221; border_radii=&#8221;on|20px|20px|20px|20px&#8221; box_shadow_style=&#8221;preset2&#8243; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Scenario three: Site Manager<\/h3>\n<p>Hugo is a site manager for a small construction company. His working hours are 7:00 am to 4:30 pm. At 6:30 pm, a foreman messages him about a safety issue that occurred after hours. The problem could affect work the next morning and requires attention.<\/p>\n<p>Hugo does not respond after reading the message, as he is caring for his child. Hugo also believes that the issue is not an emergency, and the contact is outside of working hours.<\/p>\n<p>&nbsp;<\/p>\n<h4>Right to Disconnect: Requires mediation<\/h4>\n<ul>\n<li>The problem is a safety issue, which means that a refusal to respond could be unreasonable.<\/li>\n<li>Hugo\u2019s role as site manager implies that it comes under his responsibility.<\/li>\n<li>Hugo is not compensated for after-hours availability; he may argue that his refusal is justified.<\/li>\n<li>Hugo\u2019s circumstances as a caretaker could also factor into why his lack of response is reasonable.<\/li>\n<\/ul>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.4&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<p>While the first two scenarios present clear, reasonable, and unreasonable uses of the Right to Disconnect, the third is intentionally presented as a grey area. Hugo\u2019s refusal to respond can be interpreted as reasonable or unreasonable, which is why it would require mediation.<\/p>\n<p>What each scenario highlights is that work expectations and responsibilities in the context of outside-of-hours communication need to be established so that escalation to Fairwork is avoided.<\/p>\n<h2>Right to Disconnect Myths<\/h2>\n<p>The discussion surrounding the Right to Disconnect has led to several misconceptions that should be addressed:<\/p>\n<h3>Employers cannot contact employees after hours<\/h3>\n<p>Employers can still contact employees outside of regular working hours. The Right to Disconnect does not prohibit this: it only allows employees the right to decline non-urgent contact without fear of disciplinary action.<\/p>\n<h3>Right to Disconnect only applies to the employer-employee relationship<\/h3>\n<p>The law also applies to third-party communication. Third parties encompass a range of stakeholders, including clients, customers, suppliers, and even parents who attempt to contact teachers outside of school hours.<\/p>\n<h3>The Right to Disconnect is the right to sue<\/h3>\n<p>The Right to Disconnect is not a right for employers or employees to pursue litigation against each other. A procedure is in place for employers and employees to follow in the event of any dispute.<\/p>\n<h2>Right to Disconnect Disputes<\/h2>\n<p>Disputes over the Right to Disconnect between employers and employees should first be dealt with in the workplace. This should involve a frank discussion between the parties regarding work responsibilities and any necessary contractual changes to employment.<\/p>\n<p>If the dispute cannot be resolved in the workplace, either party may refer it to the Fair Work Commission for resolution. The FwC can issue orders in several ways, which include stop orders to either party.<\/p>\n<h2>The Right to Disconnect and your business<\/h2>\n<p>With the law in place for all businesses, it is wise to take time and speak with your employees so that disputes don\u2019t occur in the future. For guidance on how to approach these discussions, the <a href=\"https:\/\/www.fairwork.gov.au\/employment-conditions\/hours-of-work-breaks-and-rosters\/right-to-disconnect#tips-for-discussing\" target=\"_blank\" rel=\"noopener\">Fair Work Ombudsman has tips<\/a> on having these conversations with your employees.<\/p>\n<p>[\/et_pb_text][ba_social_share icon_bg=&#8221;#03002e&#8221; icon_padding=&#8221;10px|12px|10px|12px|true|true&#8221; layout=&#8221;classic&#8221; show_text=&#8221;off&#8221; btn_padding=&#8221;0px|0px|0px|0px|false|false&#8221; btn_bg_color=&#8221;RGBA(255,255,255,0)&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;50px||||false|false&#8221; custom_padding=&#8221;25px||||false|false&#8221; custom_css_before=&#8221; content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;&#8221; border_width_top_main=&#8221;1px&#8221; border_color_top_main=&#8221;#e4e4e4&#8243; border_radii_icon=&#8221;on|5px|5px|5px|5px&#8221; global_colors_info=&#8221;{}&#8221; custom_css_before_last_edited=&#8221;off|desktop&#8221;][ba_social_share_child _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;facebook&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;linkedin&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;email&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Right to Disconnect law will take effect for small businesses on 26th August 2025. Discover what it means and how to remain compliant.<\/p>\n","protected":false},"author":36,"featured_media":295923,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p><p>This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p><p>Let\u2019s go through it.<\/p><h2>Key changes to casual employment rights<\/h2><p>The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p><p>Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p><p>Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p><p>Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p><ul><li>The employee has been employed for 6 months or more (or for small business, 12 months or more)<\/li><li>The employee believes that they no longer meet the requirements of a casual employee defined under the Fairwork Act 2009<\/li><\/ul><h2>Who is affected by the employee choice pathway?<\/h2><p>The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p><p>The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p><h2>The process involved<\/h2><p>The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p><h3>Defining casual employment<\/h3><p>The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p><ul><li>The employment relationship is not a firm commitment to further ongoing work.<\/li><li>The employee is entitled to casual loading under the rate determined under their agreement, rate, or contract.<\/li><\/ul><p>If you are unsure about the definition of <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\" target=\"_blank\" rel=\"noopener\">casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p><h3>Giving notice of employment change<\/h3><p>The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p><ol><li>The employee must have been employed for 6 months or more (12 months or more for small businesses), and;<\/li><li>The employee believes that they no longer meet the requirements of casual employment.<\/li><\/ol><p>Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p><blockquote><p><em>Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote><p>In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p><h3>Responding to a notice<\/h3><p>Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p><ul><li>Whether the employee would move to full-time or part-time permanent employment.<\/li><li>The change of hours the employee will work.<\/li><li>When the change of employment will take effect.<\/li><\/ul><p>After a consultation, the employer can accept or reject the notice of employment change.<\/p><h3>Accepting or rejecting an employment change notice from an employee<\/h3><p>When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p><p>When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p><ul><li>The employee still meets the requirements of casual employment.<\/li><li>Causes significant changes to the business organisational structure.<\/li><li>It will have a considerable impact on day-to-day business operations.<\/li><li>The change will break existing rules in an award or enterprise agreement.<\/li><li>The change violates recruitment or selection procedures that are protected by law.<\/li><\/ul><p>Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\/becoming-a-permanent-employee#protections\" target=\"_blank\" rel=\"noopener\">protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p><h2>What happens if there is an employment dispute?<\/h2><p>Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p><ul><li>Consultation with the Fairwork Ombudsman<\/li><li><a href=\"https:\/\/www.fwc.gov.au\/issues-we-help\/casual-permanent-status\" target=\"_blank\" rel=\"noopener\">Resolution mediated<\/a> by the Fairwork Commission<\/li><\/ul><p>Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p><h2>The bottom line<\/h2><p>As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/payroll-guide\/workforce-management\/\" rel=\"\">managing your staff<\/a>.<\/p><p>You may find that the new process has new opportunities for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/hiring-staff-process\/traits-good-team-member\/\" rel=\"\">dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/payroll\/\">payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[344],"tags":[],"class_list":["post-295921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Right to Disconnect for Small Businesses | Reckon Blog<\/title>\n<meta name=\"description\" content=\"The Right to Disconnect law will take effect for small businesses on 26th August 2025. 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