As technology increasingly blurs the line between work and home, this legislation aims to set clear boundaries for employees and ensure that they are not forced into work-related communications outside of their set working hours.

What does the Right to Disconnect Act contain?

The laws are part of a broader reform of the Fair Work Act and give employees the opportunity to opt out of communications with their employer outside of working hours.

The centre-left Labor government of Prime Minister Anthony Albanese pushed through this law, with the Prime Minister stressing the importance of mental health and noting that workers could not be expected to work around the clock because they were not paid 24 hours a day. Albanese says this change is crucial to allow workers to step away from their job duties and return to their personal lives.

Why was this law necessary?

As technology continues to blur the lines between work and personal life, this law aims to set clear boundaries for employees and ensure that they are not required to engage in work-related communications outside of their scheduled working hours.

During the Covid-19 pandemic, these boundaries blurred even more as the majority of workers worked from home. While this provided flexibility, it also led to people working overtime.

A survey conducted last year by Swinburne University of Technology in Australia found that by 2023 there will be an average of 281 hours of unpaid overtime, with an estimated labor value of A$130 billion.

Who does the law apply to?

The law will apply to most “national system employees” from August 26 this year, and small businesses will have to comply from the same date in 2025. Similar regulations exist in more than 20 countries, mainly in Europe and Latin America, suggesting that the importance of work-life balance is recognized worldwide.

Appropriate vs. Inappropriate Work Calls

The new laws do not outright prohibit employers from contacting their employees outside of working hours. Instead, they give employees the enforceable right to ignore such messages unless their refusal is deemed unreasonable.

Factors considered in determining whether a refusal is unreasonable include the reason for the contact, the nature of the communication, the disruption it causes to the employee’s personal life, any compensation paid and the nature of the employee’s role.

This flexibility enshrined in the law ensures that it can be adapted to different workplace scenarios.

What criticism is the “right to switch off electricity” exposed to?

Despite its benefits, Australia’s Right to Disconnect law has faced criticism, particularly from business leaders concerned about its potential impact on flexibility and productivity. When the bill was first introduced in February this year, CEOs of Australian Chambers of Commerce warned in a joint statement that the legislation could hamper business operations and prevent flexible working arrangements, particularly for women who have to juggle family responsibilities.

They argued that while modern technology allows for constant communication, it also offers the flexibility that many workers need. The CEOs stressed that the law could also discriminate against workers who demand their right to disconnect, which could harm their career prospects.

What happens if an employer does not agree?

Disputes arising from these new rules should ideally be resolved between employers and employees. If agreement cannot be reached, the Fair Work Commission (FWC) can intervene.

The FWC has the power to make orders preventing employers from contacting employees after hours or, conversely, requiring employees to respond if their refusal is deemed unreasonable. Failure to comply with these orders can result in significant fines of up to A$19,000 for an employee and up to A$94,000 for an employer.

Can the law actually work?

Although the law has the potential to redraw the boundaries between work and personal life, some workers remain skeptical about its practical impact. Cultural attitudes to work may still compel employees to respond to communications after hours, particularly in high-pressure industries. Media reports say this cultural shift is necessary for employees to feel comfortable setting boundaries and fully exercising their right to disconnect.

In which other countries is there a “right to switch off” law?

Australia is not the only country to recognise the need for such legislation. France was the first to introduce a right to disconnect law in 2017, requiring companies to create clear policies on after-hours communications. Other countries, including Ireland, Luxembourg and several in Latin America, have since followed suit, each adapting the concept to suit their unique work culture.

In some countries, such as Greece, the law goes even further and requires employees to refrain from working completely outside of working hours. In countries such as Sweden, Germany and the Netherlands, however, there is no formal legislation and it is culturally unusual for employers to contact their employees after work.

Is there a “right to switch off electricity” law in India?

The short answer is no. India has tried similar protections with the Right to Disconnect Bill of 2018, introduced by MP Supriya Sule. However, this bill has not yet made any significant legislative impact.

While this law is a positive step forward, its success will depend on how it is implemented and whether it can bring about the cultural change needed to truly decouple workers from their work obligations after work.

First published: 26 August 2024 | 13:04 IS