Right to Disconnect: Is Your After-Hours Culture Becoming a Legal Risk?

The August 26 Deadline

While larger organisations have been navigating these laws since last year, small businesses have had an extra twelve months to prepare. That grace period ends on 26 August 2025, when employees gain the legal right to refuse work contact outside their designated hours. This covers everything from emails to calls, texts, and even client contact relating to work.

The legislation doesn't create blanket prohibitions—it asks whether an employee's refusal is reasonable, considering the reason for contact, the disruption caused, compensation for availability, the employee's role and seniority, and personal circumstances including caring responsibilities. Misjudge this balance, and your business could face stop orders, unfair dismissal claims, or general protections disputes.

Learning from Early Cases

Larger businesses have already provided cautionary tales. The NSW Personal Injury Commission found seven phone calls and multiple emails to an employee on sick leave over four days unreasonable. The Fair Work Commission has warned that employers can no longer assume after-hours messages will be monitored—a wake-up call for businesses built on constant connectivity.

The stakes are higher than individual disputes. Taking action against an employee for disconnecting could trigger general protections claims. Dismissing someone for refusing after-hours contact may constitute unfair dismissal if their refusal was reasonable—expensive lessons that small businesses can ill afford.

An Opportunity for Growth

With weeks remaining, this isn't about scrambling for compliance—it's about seizing a final opportunity to address "availability creep" before it becomes a legal liability. The legislation doesn't ban after-hours contact; it demands intentionality about when and why you reach out to staff.

Small businesses, typically more agile than larger competitors, can use these final weeks to implement sustainable practices that respect boundaries while preserving the flexibility that keeps them competitive. The question is whether your always-on culture genuinely drives results or simply masks inefficiencies that the new laws will expose.

At First Principles Solutions, we're helping organisations navigate these changes while maintaining operational flexibility. If you'd like support reviewing your after-hours practices or developing practical frameworks that work for your business, please get in touch.

Note: This article provides general information only and should not be relied upon as legal advice. We recommend seeking specific legal guidance for your circumstances.