Right to disconnect: How SMEs can prepare now to avoid headaches down the road

Whenever new corporate laws come into force, SME owners and leaders have to think especially hard about how this will affect their businesses. The right to disconnect, which mandates employees have the right to avoid work communications outside their regular hours, is no different. The policy will come with its own set of unique challenges for SMEs. 

As the Closing Loopholes No.2 Act is set to come into effect on August 26, 2024, businesses across Australia will be scrambling to prepare over the next two months. The good news for SMEs with less than 15 employees is that the legislation will come into effect next year in August 2025. 

While one year might still feel a while away, SMEs of all sizes should start preparing now to avoid a compliance headache down the line. 

Understanding the right to disconnect 

The right to disconnect legislation aims to ensure employees can enjoy their personal time without the pressure of responding to work-related communications. In practice, it means employees will have the legal right to ignore work emails, calls, and messages outside their contracted working hours unless there’s an emergency or exceptional circumstance. 

The intention of the law is well-founded: it is a response to growing concerns about employee burnout and work-life balance, and signifies a shift towards more employee-friendly workplace practices. However, SME business leaders worry that it will have adverse consequences on business operations and affect financial performance. 

Unique challenges for SMEs 

For SMEs, the transition to this new regulation is even more complex. Unlike their larger counterparts, SMEs often operate with less staff and tighter budgets, which can make adhering to IR reform more challenging. The flexibility and around-the-clock engagement that characterise smaller businesses can be at odds with the structured boundaries the right to disconnect seeks to establish. This has the potential to disrupt workflows, reduce flexibility, and hinder spontaneous collaboration, which are often vital to the innovation and growth of SMEs. 

On the bright side, European SMEs have faced similar challenges with the right to disconnect, and many have adapted successfully. Businesses in France have reported improvements in employee wellbeing and job satisfaction, which ultimately lead to higher productivity. By learning from these examples, Australian SMEs can find effective strategies to comply with the new regulations while maintaining their innovative edge. 

Prepare now, implement later 

So, how can SMEs start preparing now to avoid a compliance headache down the road? Here are six practical strategies to get ahead of the curve:

1. Establish clear communication: Define and communicate policies regarding work-related communications outside regular hours. Ensure that employees understand these policies and the boundaries they set. This transparency will help manage expectations and align roles with employees’ work-life balance needs. 
2. Build trust and flexibility: Cultivate a culture of trust where both management and staff understand and respect the new boundaries. Flexibility is key; allowing employees some leeway in their schedules can help maintain productivity while adhering to the new rules. 
3. Leverage technology: Utilise technology to facilitate asynchronous communication with your employees and manage workflows effectively. Tools that support time zone differences and do not require constant online presence can help maintain productivity without breaching the right to disconnect. 
4. Promote work-life balance: Encouraging a healthy work-life balance not only helps comply with the new legislation, but can also boost morale and reduce burnout. A supportive workplace culture can lead to higher job satisfaction and, consequently, greater productivity and creativity. 
5. Provide training: Educate both management and staff about the new laws and how to implement them effectively. Training sessions can help ease the transition and ensure everyone is on the same page regarding expectations and compliance. 
6. Seek external guidance: Leverage the expertise of external consultants, spanning from legal, and financial to HR professionals. They can offer invaluable advice, pointing out potential risks and suggesting ways to reduce the chance of non-compliance. 

While the right to disconnect presents challenges, it also offers an opportunity for SMEs to rethink their work practices. By adopting these strategies ahead of time, SMEs can get ready to navigate the upcoming changes and create a more sustainable work environment. Adapting to the right to disconnect doesn’t have to come at the expense of productivity; instead, it can promote a healthier, more engaged workforce ready to drive the business forward. 

By looking at the experiences of successful European businesses that have implemented similar laws, Australian SMEs can find strategies to adapt and thrive under these new regulations. Preparing now will ensure compliance and position SMEs for long-term success amidst evolving workplace norms.

Matt Loop is the VP and head of Asia at Rippling.

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