Understanding the Impact of the Right to Disconnect Law
Starting today, Australian businesses with 15 or more employees must comply with the new "right to disconnect" law, which allows workers to ignore out-of-hours communications from their employers. Penalties for non-compliance are significant, reaching up to $19,000 for individuals and $90,000 for companies.
From August 26 next year, this regulation will also apply to smaller businesses with fewer than 15 employees, affecting every business across Australia, from major corporations to local shops. The law, part of the Closing Loopholes Bill, aims to protect employees' work-life balance but presents challenges for employers, including potential conflicts and impacts on productivity.
Key implications of the right to disconnect law include:
- Increased Conflict: Employees might challenge promotions or unpaid overtime, potentially leading to more underpayment claims.
- Productivity Concerns: Companies may need to reassess their resourcing and outsourcing strategies to adapt to the new restrictions.
- Generational Differences: Varied comfort levels with after-hours contact among different age groups could lead to workplace tension.
- Remote Work Adjustments: Formal documentation of remote work arrangements will be necessary to ensure clarity.
To successfully adapt to these changes, businesses should:
- Educate employees about the new law.
- Update policies regarding out-of-hours communication.
- Review job descriptions and compensation related to after-hours work.
- Conduct audits for potential underpayment issues.
- Prepare for the impact of strictly adhering to normal working hours.
For a more detailed analysis of the right to disconnect law and its potential impacts, read the full article in The Sydney Morning Herald and The Age.
About Natasha Hawker
Natasha Hawker is a highly experienced employee expert, speaker, author and entrepreneur. Her forte lies in understanding and communicating all aspects of HR, people management, and employment relations. With nearly three decades as a presenter, her reach extends internationally, sharing her knowledge with audiences in Australia, New Zealand, Philippines, USA, France, India, and the UK.
About Employee Matters
Founded by Natasha Hawker in 2011, Employee Matters offers businesses top-tier, in-house HR and recruitment expertise. Specialising in helping SMEs to become more profitable, grow, and build sustainable businesses, Employee Matters is Australia’s go-to resource for all employment issues and challenges. As a finalist in the 2023 Telstra Best of Business Awards, Employee Matters continues to set the standard for excellence in HR services. https://www.employeematters.com.au/
More information on Right to Disconnect Laws available HERE
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