Only 30% of workers comfortable ignoring out-of-hours contact as small businesses prepare for August 26 compliance deadline approaching fast.
What’s happening: Nearly a year after Right to Disconnect laws took effect for larger businesses, 37% of Australian workers still feel pressure to be constantly available, with job insecurity and mixed employer messaging undermining the legislation’s intent.
Why this matters: As small businesses face compliance from August 26, the disconnect between legal protections and workplace culture reveals the challenge of changing deeply embedded work habits while economic uncertainty drives employees to overcompensate through availability.
Australia’s Right to Disconnect laws were designed to free workers from the tyranny of after-hours contact, but new data suggests many employees remain chained to their devices.
Research from ELMO Software covering April to June 2025 found that despite legal protections, only three in ten workers feel comfortable ignoring out-of-hours work contact. The ELMO Employee Sentiment Index, which surveyed over 1,000 Australian employees, reveals a troubling gap between policy and practice.
“These findings reflect a transitional moment for many workplaces,” said Joseph Lyons, CEO of ELMO Software. “The Right to Disconnect gives employers a clear framework, but it takes time, consistency and honest conversations to embed new habits and build trust.”
Legal protection, cultural lag
The legislation allows employees to disengage from work-related communications outside official hours without obligation to respond. Yet 37% of workers don’t feel comfortable exercising this right at all, while more than three in five admit to responding to after-hours contact simply to appear committed or avoid negative judgement.
The cultural pressure runs deeper than mere perception. One in six workers report experiencing actual consequences for not replying after hours, including having their commitment questioned or feeling overlooked for promotions and pay increases.
“In a workforce where two in five employees report burnout, the expectation to be always on is unsustainable,” Lyons said. “Clear communication and follow-through from leaders can go a long way in helping teams set healthy boundaries without compromising on performance or connection.”
The disconnect between policy and perception is stark. While 60% believe their employer genuinely supports their right to switch off, almost a quarter say the support feels like lip service, with a further 17% unsure about their employer’s genuine commitment.
Job insecurity drives behaviour
Economic uncertainty appears to be undermining the legislation’s effectiveness. Only 30% of workers feel economically secure, down from 33% in the first quarter and well below 2024 levels of 53%.
This insecurity translates directly into work behaviour. Almost half of respondents believe they need to work longer and harder hours to protect their jobs, up from 37% six months ago.
“When people are feeling uncertain about the future, it’s natural to go the extra mile,” Lyons explained. “But over time, that can take a toll. Sustained performance doesn’t come from longer hours. It comes from clarity, focus, and the freedom to deliver outcomes without needing to be always visible.”
The research also revealed generational and gender divides. Only 9% of Baby Boomers say they’re more likely to ignore after-hours contact since the new laws, compared to 29% of Gen Z workers. Women are significantly less comfortable than men in switching off, with 44% versus 31% expressing discomfort.
Small businesses prepare
With Right to Disconnect laws extending to small business employers from August 26, the findings offer crucial insights for SME owners preparing for compliance. Recent analysis has highlighted the particular challenges SMEs face in balancing legal requirements with operational needs.
Small business owners can take several practical steps before the deadline:
Policy development: Create clear written policies outlining when after-hours contact is genuinely urgent versus routine. Define specific circumstances that justify emergency contact and communicate these boundaries explicitly to all staff.
Technology boundaries: Establish email and messaging protocols that respect personal time. Consider delayed send functions for non-urgent communications and create separate channels for truly urgent matters.
Leadership modelling: Managers and owners must demonstrate respect for boundaries by avoiding routine after-hours contact. Small business owners, in particular, need to resist the temptation to blur lines simply because they’re always working.
Regular check-ins: Schedule brief conversations with staff about workload and expectations rather than relying on constant availability to gauge commitment or address issues.
Building genuine boundaries
For businesses of all sizes, the challenge extends beyond compliance to cultural change. Lyons emphasised that forward-looking organisations are using this moment to recalibrate expectations and align with evolving work styles.
“With the generational shift in attitudes to work-life balance, forward-looking organisations are using this moment to recalibrate,” he said. “It’s about aligning expectations with evolving workstyles, and using technology, tools and culture to support people to do their best work, without burning out.”
The stakes for non-compliance are significant, with fines of up to $18,000 for employers who fail to respect their workers’ right to disconnect. But the research suggests the real challenge isn’t avoiding penalties but building trust and genuine cultural change.
As small businesses prepare for the August 26 deadline, the message is clear: policy is just the starting point. Embedding lasting change will depend on clear communication, consistent leadership, and a workplace culture that genuinely supports balance rather than simply paying lip service to legal requirements.
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