From Tuesday, Australian small business employees will have the legal right to ignore work calls, emails and messages outside their contracted hours – unless the contact is deemed 'reasonable.' Similar rights have been available to employees in large organisations since 26 August 2024.
The Right to Disconnect is already making headlines, with Queensland school teacher Michelle Martin suing her former employer Cairns Rudolf Steiner School for nearly $800,000 in damages over after-hours contact.
“Cases like this show the law isn’t just a symbolic change – there’s real legal and financial risk for employers who get it wrong,” says Lyndon Burke, founding partner at Burke Mangan Lawyers – a firm that specialises in employment law. “If you haven’t updated your policies and trained your managers, you could be next.”
Why It Matters for Small Business
While big corporates often have HR teams to handle compliance, smaller operators face the same legal obligations – with fewer resources to manage the risks.
“The law doesn’t care if you have five employees or 5,000,” says Burke. “If you breach these new rules, the penalties and reputational damage can be devastating.”
Proactive compliance isn’t just about avoiding fines – it’s also good for business, he says. “Getting this right builds trust with your staff, reduces turnover and protects your brand,” he says. “It’s not just a legal requirement, it’s a competitive advantage.”
If employers action against employees who exercise the right to disconnect they could be exposed to claims for damages, penalties and potentially penalties for award breaches.
Other 2025 Workplace Law Changes SMEs Need to Know
The Right to Disconnect is just one of several major employment law changes in 2025 that could catch small business owners off guard, says Burke. These include:
1. Wage Theft Is Now a Criminal Offence (From 1 January 2025)
Intentionally underpaying staff is now a crime, carrying potential jail time for individuals and multi-million-dollar fines for companies.
“This isn’t just about dodgy operators. Even payroll mistakes can lead to significant penalties – and in some cases, criminal liability,” says Burke.
2. Superannuation Increase to 12% (From 1 July 2025)
The compulsory super guarantee rate has recently risen from 11.5% to 12%, increasing payroll costs for all employers.
“Small business owners need to factor this into their budgets now,” says Burke. “It’s not just an extra 0.5% — it can have a real cashflow impact, especially if you have a large casual workforce.”
3. Award Classification and Pay Rate Updates (From 1 January 2025)
Modern award changes have introduced new entry-level classifications and pay rates across multiple sectors.
“Misclassification is one of the biggest compliance risks,” Burke says. “Even a minor error can trigger back-pay obligations and fines.”
How SMEs Can Stay Compliant in 2025
Burke says SMEs should take these immediate steps:
- Review your policies and contracts – especially regarding after-hours contact.
- Audit your payroll and timekeeping systems – to ensure correct pay rates and entitlements.
- Update your budgets – to account for higher super contributions from July.
- Train managers and supervisors – on the new Right to Disconnect obligations and respectful communication.
- Seek advice early – before the Fair Work Ombudsman, Fair Work Commission, a Federal Court or a tribunal gets involved.
“A quick review with an employment lawyer now can save you thousands in fines and legal costs later,” says Burke. “The days of informal, ‘she’ll be right’ approaches to HR are over.”
More information
Burke Mangan Lawyers has published practical explainers for both employers and employees on navigating the Right to Disconnect.
About us:
About Burke Mangan Lawyers
Burke Mangan Lawyers is a trusted Australian law firm specialising in all aspects of employment and family law. With a commitment to clear guidance and strong representation, Burke Mangan Lawyers supports clients through every stage of their legal journey.
About Lyndon Burke
Lyndon Burke is a specialist in employment law and a founding partner of Burke Mangan Lawyers. With over 25 years of experience, he advises employees and businesses on all aspects of workplace law, with a focus on fair treatment and early resolution.
Contact details:
Georgia Madden
UR Digital
Email: [email protected]
