How to leverage the Right to Disconnect

23 August 2024

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What is the Right to Disconnect?

In an effort to provide greater protections for workers and achieve greater work life balance, the federal government has made amendments to the Fair Work Act which give employees the ‘right to disconnect’. Simply put, it provides employees with a legal right to switch off after hours, or a “right to ignore”, and is designed to protect employees’ mental health and wellbeing.

The proliferation of smartphones and the rise in hybrid flexible working arrangements since Covid-19 have both contributed to normalise the pressure for employees to be available to work around the clock.

The right to disconnect, enforceable from 26 August 2024, is intended to protect employees from the resultant “availability creep” which has blurred the boundaries between work and personal life.

Australia is the latest in a growing list of countries to introduce such measures. France was the first to introduce the right to disconnect in 2016 and has since been followed by many others including Chile, Argentina, Canada, Italy, Ireland and the Philippines.

Who gains when workers unplug?

While some employers may have immediate concerns about how the right to disconnect will impact their business, it is worth stepping back to appreciate the broader picture. In this post-pandemic era, studies show that the impacts of chronic stress can lead to burnout, increased errors and decreased performance.¹ Excessive and unnecessary demands outside of working hours can lead to a lack of psychosocial safety, a key obligation under Work Health and Safety laws.

The new legislation should be seen as a way for employers to promote wellbeing and consequently drive engagement and productivity. Those employers who lean into the cultural shift that underpins the right to disconnect will also enhance their EVP.

The right to disconnect has potential benefits for employees and employers:

Employees	Employers
Decreased psychosocial hazards by preventing the “always on” culture and giving employees a greater say in their work schedules.	Positive workplace culture: A culture that respects personal time can lead to high employee morale and a healthy work environment. It can enhance the company’s reputation, making it easier to attract top talent.
Increased productivity: Reasonable working hours and manageable workloads, combined with proper rest and recovery, can enhance overall productivity and job performance.	Decreased Absenteeism: Lower rates of absenteeism allows for more predictable workflows, reducing the collective burden on employees to backfill or “double-hat” responsibilities.
Improved well-being: Limited connectivity and clear boundaries between work and personal time can reduce stress levels and prevent burnout, as employees feel less pressured to be available around the clock.	Enhanced Growth and Innovation: Employees who have the right to disconnect can enjoy mental space for creative thinking and innovation. This fosters a culture of innovation, driving the company’s growth and competitiveness in the market.
Enhanced work-life balance: Clear boundaries between work and personal time allow employees to fully enjoy their personal lives, leading to a healthier work-life balance, especially for working carers.	Lower Employee Turnover Rates: A healthy work-life balance can lead to higher job satisfaction, encouraging employees to stay with the company. Low turnover rates reduce costs associated with recruiting, hiring, and training new employees.

How can employers embrace the right to disconnect?

The right to disconnect doesn’t require a complete overhaul of the way organisations work. Rather, it requires a shift in thinking and a series of strategic actions:

Define your baseline
Understand the current state of your organisation: what are the formal and informal channels of communication? Have these channels been defined by your policies, or have they organically evolved as part of the ‘expectations’ in your work environment. Objectively assess whether there are aspects of your workplace culture that need to change to accommodate the right to disconnect.

Know your people and operations
Understand your workforce demographics and review your data to understand how workflows, business demands and organisational structures shape workplace culture, expectations and employee experiences. Ensure your managers are equipped to effectively communicate workload expectations and working arrangements. Consider the metrics you already have available, including hours worked and engagement feedback – is your data reliable and comprehensive?

Develop clear policies
Assess whether your current policies adequately accommodate the right to disconnect, or whether adjustments are required. Ensure your policies can be consistently applied, accounting for your workforce demographics and operational environment.
Also consider how you can reinforce boundaries through simple tweaks and accessible tools including auto delayed emails and caveats in signature blocks.

Strategic communications
Treat the right to disconnect as an opportunity to communicate the value you place on your people and their mental health. Articulate measures that promote work/life balance, ensuring everyone has a clear understanding of their rights and responsibilities.

Test, review and adjust
It won’t be a ‘one size fits all’ approach. Consider pilot programs that test new ways of working with particular teams. Give these teams the opportunity to provide feedback and, when you find effective examples, see how they can be adjusted or scaled across the organisation.

When employers find alignment between their business model, operational environment and workplace culture, the right to disconnect can yield benefits for everyone.

If you would like to discuss how your business can benefit from the right to disconnect, reach out to one of our PwC Workplace Risk & Reform specialists.

¹ Centre for Work Health and Safety, ‘Australian WHS Survey’ 1st edition, April 2023 NSW