HR Matters

Right To Disconnect

Here’s what we’ve learned in the first year since Australia’s Right to Disconnect (RTD) legislation came into effect for larger employers (on 26 August 2024):

Key Learnings from Year One

1. Boosted Engagement, Productivity & Well-Being

  • A majority of employers (58%) reported improved employee engagement and productivity post-RTD introduction. Only 4% saw either engagement or productivity drop.
  • Reduced stress and better work-life balance were also commonly cited—37% of employers observed lower stress, and 39% noted improved balance.
  • Employees themselves reported strong positive effects: in 2024, 68% anticipated better work-life balance; by 2025, 77% of employers confirmed this improvement.

2. Practical Adaptation and Cultural Shifts

  • Surprisingly, there have been no major legal disputes or test cases—suggesting both employees and employers are navigating the law in good faith, without needing formal adjudication.
  • Employers appear more cautious about after-hours communication, and in many cases defer—or rethink—such messages.
  • Most disputes are being resolved internally, showing an early cultural shift toward respecting boundaries.

3. Legal Clarity—and Ambiguity—around “Reasonable

  • One of the biggest hurdles has been defining what constitutes “unreasonable” after-hours contact. The law deliberately leaves room for interpretation, placing management discretion—and risk—on businesses.
  • This vagueness continues to create confusion among employers, especially without legal guidelines or precedents to clarify boundaries.

4. Improved Policies in Practice

  • RTD has driven the creation (and revision) of employment contracts, workplace policies, and communication protocols, making disconnection a staple of HR consulting and compliance work.
  • Legal advisors highlight that RTD has also sharpened focus on psychological safety and sustainable work cultures.

5. Growing Pains for SMEs Ahead

  • From 26 August 2025, RTD extends to small businesses (<15 employees). Many SME owners worry about new compliance burdens, unclear expectations, and distractions from growth-orientated management.
  • The Small Business Ombudsman warned that while the law might not be revolutionary, it will require time, communication, and formalization of after-hours expectations.

6. Embracing Boundary Culture

  • Supporters argue RTD signals a broader cultural shift prioritizing human-centered workplaces and mental well-being.
  • However, some business leaders criticize the law as redundant—claiming if workplaces can’t function without intruding on private time, there’s a management issue, not a policy one.

What’s Next?

  • As RTD applies to small businesses from August 2025, watch for more feedback, disputes, and clarifications on legal boundaries.
  • Employers will benefit from issuing clear, role-based guidelines for after-hours communication, and building trust through inclusive policy design.