Fair Work abolishes junior pay rates for adults: what it means for businesses
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Advances in technology and increased dependence on our smartphones mean we’re generally contactable 24/7 by friends, family, and bosses. However, employees will soon be able to legally refuse contact or attempted contact from their employer (or from a third party where the contact or attempted contact relates to their work) outside the employee’s working hours.
It’s law in France, but the question is: will it work in Australia? Here we break down the proposed ‘Right to Disconnect’ legislation, the impact it will have on workplaces, and what it means for business owners.
The Fair Work Amendment (Right to Disconnect) Bill 2023 (the Bill) amends the Fair Work Act 2009 (Cth) (FW Act) by providing that an employee has a workplace right to disconnect from work. That is, employees may refuse to monitor, read, or respond to contact or attempted contact, from their employer (or a third party if the contact or attempted contact relates to their work) outside of the employee’s working hours, unless the refusal is unreasonable.
Without limiting the matters that may be considered in determining whether a refusal is unreasonable, the following must be taken into account:
Similarly to other recent laws like casual conversion, a 12-month delay in commencement for small business owners will apply for the right to disconnect amendments. These proposed laws will not apply to small business employers – businesses that employ less than 15 employees – or an employee of such employer until 12 months after the commencement of the amendments to the FW Act.
There are various avenues for dispute resolution in circumstances where an employer believes that an employee’s refusal to monitor, read, or respond to contact or attempted contact is unreasonable which include:
In the first instance, parties must attempt to resolve the dispute at the workplace level through discussions.
If discussions at the workplace level do not resolve the dispute, a party to the dispute may apply for the Fair Work Commission (FWC) to do either or both of the following:
The FWC may make an order if they’re satisfied that either or both of the following apply:
The introduction of an employee’s right to disconnect from work will place significant boundaries upon employers contacting their employees outside of working hours. This means that businesses will be required to ensure that they’re organised, proactive, and efficiently utilising work time to complete work. Given matters such as working hours and compensation are critical aspects of these changes, reviewing contractual provisions in these areas is recommended for those employees who are likely to be contacted, and required to respond, outside their usual working hours.
Employers also need to be aware that they will be prohibited from engaging in adverse action against their employee (i.e., commencing disciplinary action or terminating an employee’s employment) because an employee has refused to respond to an out-of-hours text message or phone call. This is because an employee’s right to disconnect from work is now included as a workplace right within the general protections provisions of the FW Act.
On 14 December 2023, several changes from the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023 became law. Given the breadth of changes, it was decided that the Bill would be split into two, with the Federal Government has announced that it will pass the Closing Loopholes No 2 Bill which includes the second tranche of workplace relations reform. We will shortly see the remaining changes come into effect which include:
Once the changes have been enacted, we will provide a further in-depth analysis of what the changes entail and their implications.
Amanda Curatore is a qualified Senior Associate at Citation Legal and Citation HR. Amanda is highly experienced in providing workplace relations advice and assistance to clients in a wide range of matters including employment contracts, modern award interpretation, managing performance, bullying and harassment, terminations and managing risk.
Nick Tindley is a Partner at Citation Legal and the Executive Manager of HR Consulting and Advisory Services at Citation HR. Based in our Melbourne office, he has over 19 years’ experience in providing industrial relations and employment law advice, with particular expertise in the retail industry. In his role as Executive Manager, Nick supervises both the consulting and advisory teams at Citation HR and is responsible for managing a number of key client relationships.