Starting Monday, August 26, employers across Australia could face significant fines if they fail to comply with new ‘Right to Disconnect’ laws, warns Natasha Hawker, Managing Director of Employee Matters.
These regulations, part of the Closing Loopholes Bill, apply to businesses with 15 or more employees and grant workers the right to refuse work-related communications outside of work hours unless such refusal is deemed unreasonable.
Unprepared employers can face big fines for non-compliance with new ‘Right to Disconnect’ laws that apply from Monday, August 26, according to one of Australia’s leading employment experts.
Natasha Hawker, Managing Director of Employee Matters, warns that every business in the nation with 15 or more staff is at risk for failing to meet their Right to Disconnect obligations.
Ignorance is no excuse
“Ignorance is no excuse – employers must take action to comply now,” Ms Hawker warns.
Under this new industrial legislation, eligible employees will have a new “right to disconnect” with their employer outside of work hours, unless their refusal is unreasonable. It means an employee can refuse to monitor, read or respond to contact from an employer or a third party outside of working hours.
Penalties for non-compliance can reach up to $19,000 per breach for individuals and explode to $90,000 per breach for companies under the Closing Loopholes Bill which covers the right to disconnect.
In a recent case, the NSW Personal Injury Commission ordered an employer to pay a Return-to-Work Coordinator 10 months’ back pay plus ongoing compensation for harassment during the employee’s personal leave.
The employee’s supervisor repeatedly made calls and emails to the coordinator (the employee) and even suggested involving the police for a welfare check – actions deemed unnecessary and provocative, especially given the employee’s role in ensuring safe and successful returns to work.
“Under the new Right to Disconnect Laws, such a case could lead to fines,” Ms Hawker said.
Ms Hawker says Australian businesses should urgently seek expert HR advice to update their internal policies to cover the Right to Disconnect legislation. This includes training and guidance on what constitutes reasonable and unreasonable contact outside of work hours.
“Each business needs to determine what works best for their own circumstances, respecting employee rights while maintaining the desired flexibility for both parties,” she explains.
“Implementing these changes offers an opportunity to improve workplace communication, attract and retain top talent, and enhance employee engagement by reducing potential psychological risks.
“These risks are known in the industry as ‘psychosocial hazards’. The alternative is non-compliance, the risk of hefty fines, low morale, decreased productivity, and poor employee retention.”
New ‘Right to Disconnect’ laws a vital safeguard
ASU Assistant National Secretary Emeline Gaske described the changes as a “necessary safeguard”.
“Our survey revealed that 70 per cent of workers reported regularly performing work outside their agreed working hours and almost two-thirds had been contacted about a work-related matter despite being off sick, on holidays, or another form of leave,” Ms Gaske said.
“Half felt their careers will be negatively affected if they do not take calls and/or monitor emails outside of work hours.
“The right to disconnect now being enshrined in the Fair Work Act finally makes it possible to clock off and switch off without the fear of negative consequences at work, which all workers are entitled to.
Ms Gaske said the new rights would set a firm boundary between work and home, which had become increasingly blurred in the modern workplace.
“We all know what it feels like to get that call or email in the middle of dinner that we have to respond to – forcing you to switch back on. It can take hours to unwind again, lead to lack of sleep, and affect mental health,” she said.
“This legislation is a win for workers and ASU members, who have been campaigning since the pandemic for the Federal Government to enshrine the right to disconnect.
“It addresses a major complaint of workers that technology and smartphones have created an expectation that workers are ‘always on”, even in their own free and unpaid time, eroding quality of life.
“While we all want to retain flexibility around when and where we work, such as working from home, this shouldn’t come with work-creep into home-life.”
The legislation brings Australia in line with France, Spain, Canada, Argentina, and Ireland, where the right to disconnect has been enshrined.
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