Let’s talk Pay Transparency. What it looks like and why it matters.
Let’s talk Pay Transparency. What it looks like and why it matters.
From 26 August 2025, the Right to Disconnect will officially extend to employees of small business employers. For larger organisations, this change has been in play since August 2024, but for smaller teams, where blurred boundaries and constant connectivity are often part of the culture, this will feel different.
This is not about banning after-hours contact altogether. It’s about balancing operational needs with employee wellbeing and making sure you can justify that contact when it happens.
The legal baseline
- Under the Fair Work Act amendments, employees have the right to refuse to monitor, read, or respond to work-related contact outside their hours, unless that refusal is unreasonable.
Key points to know:
• This applies to contact from employers, colleagues, and third parties, think clients, suppliers, or even members of the public.
• “Contact” covers all channels: phone, email, SMS, messaging apps, and even social media.
• The focus is not on whether you contacted them, but whether their refusal to respondwas unreasonable.
When assessing whether refusal is unreasonable, you must consider:
• Why the contact is happening.
• How disruptive the method is (text vs midnight phone call)
• Compensation for being available.
• The employee’s role and responsibility level
• Their personal circumstances (e.g., caring responsibilities)
And remember, some contact is legally required (e.g., WHS or emergency recall).
Where small businesses are most exposed
Small teams often thrive on flexibility and fast response times, but that agility can create risk blind spots:
• After-hours texts that feel “friendly” but are work-related.
• Client calls going straight to personal mobiles.
• Roster changes pinged through WhatsApp at 9 pm.
• The expectation that everyone pitches in when things get busy.
Left unmanaged, these patterns can breach the law and erode trust.
Myth-busting for business owners!
Myth 1: “I can’t contact staff outside hours anymore.”
False. You can still make contact, employees can refuse to respond unless it’s unreasonable for them to do so.
Myth 2: “If they’re on call, they can still ignore me.”
Not true. If an employee is on call or being paid overtime, they can be required to respond in line with award or agreement rules.
Myth 3: “If their contract includes ‘reasonable additional hours’, this doesn’t apply.”
Wrong. The right to disconnect still applies, whether refusal is reasonable depends on the situation, not just the contract.
The Leadership Opportunity
Handled well, this change can strengthen, not weaken, your culture. Here’s how:
1. Co-create boundaries
Sit down with your team and map out when contact is expected, what’s urgent vs not urgent, and preferred channels.
2. Train for judgement calls
Managers need the skills to assess urgency and weigh it against personal circumstances.
3. Update your documentation
Policies, position descriptions, and contracts should align with the new rules and your agreed contact protocols.
4. Set client expectations
Communicate your team’s availability in proposals, onboarding, and signatures. Offer emergency escalation processes so you’re not relying on individual staff discretion.
5. Use it to tackle burnout
Research consistently shows that employees who can switch off perform better during work hours. This is a compliance win and a productivity win.
For small businesses, the Right to Disconnect is not about shutting down responsiveness, it’s about defining it. Get this right, and you’ll not only meet your legal obligations but also create a healthier, more sustainable way of working those benefits both your people and your clients.
The Right to Disconnect isn’t just a legal change, it’s a chance to define healthier boundaries, reduce burnout, and strengthen trust in your team. We’ll help you audit your policies, align your practices, and design a strategy that protects both your people and your performance.
Call us on 1300 406 005 or email info@performhr.com.au
“Boundaries don’t reduce commitment, they protect the capacity to deliver it.”
