In this article, which concludes a three-part series (parts 1 & 2: Navigating the recruitment maze & Maintaining HR compliance in the aesthetic medical field), Lizzy Boots shares practical tips for adapting to the new ‘closing the loopholes’ legislation.
In the first major shakeup of employment laws in over a decade, the Australian workplace landscape has not only shifted, but has been shaken, with the introduction of the ‘Closing the Loopholes’ legislation. These new laws include a series of significant updates for business owners in Australia.
Several new amendments to the Fair Work Act 2009 came into effect in 2024; some of these are due to come into effect in August 2025 for small business employers.
Many of these changes have created uncertainty for both employers and employees. In particular, ‘The Right to Disconnect’ along with changes to casual employment laws have left many employers and employees asking, ‘What is this all about?’
While these changes aim to enhance work-life balance and ensure fair treatment of casual employees, they have resulted in uncertainty and, at times, workplace disputes.
In this final article of our three-part series aimed at providing tools and guidance for managing workplace compliance, we focus on two of the new laws, offering practical advice and strategies for business owners to implement, stay compliant and ensure a harmonious workplace.
‘The right to disconnect empowers employees to disengage from work communications outside regular hours, except in emergencies.’
The right to disconnect
The Right to Disconnect empowers employees to disengage from work communications outside regular hours, except in emergencies. This change reflects broader societal shifts toward respecting personal time and preventing burnout.
Many employees will agree this legislation is long overdue and this is supported by a 2023 survey by the Australian Institute of Health and Safety revealing that 70% of workers reported burnout due to after-hours communication.
The Right to Disconnect aligns with global trends and similar laws which have improved employee satisfaction and reduced both turnover and stress levels for workers and their families.
Australia follows worldwide trends
In recent years, the global workplace has witnessed a significant shift toward recognising the right of the employee to disconnect, reflecting
a broader push to establish healthy boundaries between work and personal life. Starting with France, where the concept was enshrined in its labour code in 2017, the movement has since gained traction worldwide. Countries like Italy, Spain and Ireland quickly followed, implementing measures to ensure workers aren’t obligated to respond to emails or messages after hours. Argentina followed with trailblazing legislation, explicitly prohibiting out-of-hours employer contact in 2020. Portugal and Canada adopted changes in 2021 and 2022 respectively, and most recently Australia legislated the right to disconnect in 2024.
This growing worldwide trend underscores a critical response to the challenges posed by an always- on digital culture. The COVID-19 pandemic amplified these concerns, as remote work blurred the lines between professional and personal time. While approaches differ, with some countries mandating company policies and others imposing stricter legal boundaries, the shared goal is clear: to protect employees from digital burnout and foster work-life balance.
This international momentum signals a cultural shift where respecting personal time is becoming a workplace norm. It is a recognition that while technology has revolutionised communication, boundaries are essential for maintaining mental health, productivity and overall wellbeing.
Key features of the Right to Disconnect Law in Australia
- Employers must ensure their workplace policies support the Right to Disconnect.
- This law applies to most sectors but allows exceptions for genuine emergencies.
Practical steps for business owners
Revise communication policies
Develop a clear communication policy specifying expectations.
Outline required work hours for responding to emails or calls. Define emergency situations and other pressing issues that justify after- hours contact and response.
Explain to staff this is a two-way process: they should also respect managers’ and business owners’ right to disconnect and should not send emergency requests for leave approval, etc, outside of regular working hours.
Train managers & team leaders
Ensure all managers understand the law and can lead by example. Consistent compliance at the leadership level fosters trust and adherence. Provide managers with an overview of appropriate out-of- hours contact; what is urgent and what can wait.
Communicate and encourage team discussions
Host a team meeting to explain the policy, address concerns and clarify expectations. For instance, surgeons’ offices may need a specific protocol for after-hours patient emergencies, distinct from administrative queries. Device companies will have different expectations for their sales representatives to be available for client calls outside regular hours.
Update employment contracts
Additional to ensuring all existing employees receive training and a policy document that clearly outlines the new Right to Disconnect laws, it is essential to update employment contracts to include information related to expectations for out- of-hours contact and how the employee will be compensated for such contact if it occurs.
Review salaries to compensate contact
Employers are encouraged to compensate employees for any out-of-hours communication, either through additional pay or time off, ensuring equity and reinforcing boundaries. Taking this approach will align compensation with the value of employees’ time while respecting their work-life balance.
Leverage technology
Use scheduling tools to delay email delivery until regular hours and set ‘Do Not Disturb’ statuses on communication platforms. Conduct tutorials for your teams to educate them on how these tools are used and why they are important.
Monitor compliance & resolve issues
Regularly review whether the policy is being followed. If conflicts arise, mediate swiftly and transparently. Be quick to use day-to-day examples of how the law and lines of communication may be blurred in a particular work situation.
Casual employment law changes
The ‘Closing the Loophole’ changes also redefine casual employment, emphasising a conversion to permanent roles when appropriate. Key aspects of the new amendments require casual employees be offered permanent roles if they have worked ‘regular hours’ for 12 months.
The new laws aim to address the overuse of casual employment and provide greater job security for workers whose roles resemble permanent positions.
A 2022 report by the Australian Bureau of Statistics showed that 25% of all Australian employees were casuals, with many working consistent hours comparable to permanent staff. Surveys suggest that 60% of casual workers value job security more than the flexibility of casual work arrangements. Medical practices and beauty salons, with high reliance on casual staff will need to adjust employment models to meet these new compliance requirements.
While the goals of the new casual workers law is to transition regular casuals to permanent roles – creating greater job security for individuals and reduced turnover for employers – there is considerable confusion around the rights and responsibilities of employers and employees. This has had a substantial negative impact on small businesses within our industry.
Practical steps for managing new casual employment workplace laws
Audit of current casual staff
Review rosters and patterns of work to assess which roles meet criteria for conversion.
Any employees working regular and consistent hours should be offered the opportunity to convert to permanent work, part-time hours.
Be mindful that there will be a number of employees who will prefer to remain casual and opt to forego the benefits of permanent status to retain the casual loading.
Communicate the new laws proactively
Inform casual employees about their rights and the business’s approach to compliance. Transparency will reduce misunderstandings and build trust, and having open communications will ensure employees know their options.
Plan for increased costs and negotiations
Transitioning casual employees to permanent roles may involve additional costs for the business, such as paid leave entitlements.
Also be mindful that there will be a ‘negotiation’ related to conversion from casual rate to a part time or full-time rate, so budget adjustments along with employee mindset changes will be necessary.
Adjust recruitment strategies
When hiring, clarify the type of role you have on offer and consider whether casual employment aligns with long-term business needs. Consider if offering a part-time role is more cost effective in the long term.
Document employment arrangements
Maintain clear records of employee contracts, work patterns and any discussions about employment changes. This will ensure you minimise both risks and disputes.
In summary
By staying informed and proactive, business owners in the medical, health and beauty sectors can embrace these legislative changes, ensure compliance and foster a positive and productive work environment.
The Closing the Loopholes legislation is an opportunity to strengthen workplace culture and trust. By implementing the Right to Disconnect and adapting to the casual employment changes, businesses can position themselves as leaders in employee care while also meeting legal obligations and maintaining compliance.
