Sales professionals often find themselves taking and making calls outside of standard working hours to accommodate client schedules, different time zones, and urgent sales opportunities. While the new "Right to Disconnect" law in Australia allows these professionals to ignore after-hours calls and emails, it's essential for both them and their employers to discuss and establish clear guidelines that align with the nature of their work. For sales teams, balancing responsiveness with personal time will be crucial. Companies might consider specific arrangements, such as compensating for overtime or setting boundaries for after-hours communication that respect both client needs and employee well-being.

What Does the Right to Disconnect Entail?

Starting August 26, 2024, for businesses with 15 or more employees, the Right to Disconnect will allow employees to ignore work-related emails, texts, and calls outside their normal working hours unless responding is deemed necessary. This legislation, part of the Australian Government’s broader efforts to protect work-life balance, does not prevent employers from attempting to contact employees but rather safeguards employees who choose not to respond after hours.

What Does ‘Unreasonable’ Mean?

Determining what is ‘unreasonable’ when it comes to after-hours communication will depend on various factors, including:

• Reason for Contact: Is it an emergency or a time-sensitive issue?
• Method of Contact: Was it a phone call, text, or email?
• Disruption Level: How disruptive is the contact to the employee’s personal time?
• Compensation: Are employees compensated for additional hours or on-call duties?
• Role and Responsibility: Does the employee’s role inherently require after-hours availability?
• Personal Circumstances: Does the employee have family or other personal commitments?

These factors will help determine whether ignoring after-hours communication is reasonable. The Fair Work Commission (FWC) will likely provide further clarification as cases arise.

What This Means for Larger Businesses

Companies with 15 or more employees must immediately adapt to these changes. Employers should develop clear policies on after-hours communication to ensure compliance with the new rules. Strategies might include setting expectations through delayed email sending and clarifying in email signatures that immediate responses to after-hours communications are not required. Larger businesses should consider training staff on the Right to Disconnect law and revising employment contracts to specify expectations about after-hours availability.

What About Small Businesses?

For smaller businesses (fewer than 15 employees), the Right to Disconnect will come into effect one year later, on August 26, 2025. This gives small enterprises additional time to prepare by updating internal policies, training staff, and setting expectations with clients and customers.

Impact on Global Operations

Global companies with Australian subsidiaries will likely feel the effects of this new legislation, particularly when their sales teams work across various time zones. For instance, consider an international business with operations in both Melbourne and London. If Australian employees exercise their right to disconnect by refusing all contact from their British colleagues outside standard working hours, maintaining real-time communication and collaboration could become challenging. This is especially relevant for sales professionals who often need to interact with international clients and colleagues promptly.

However, the legislation includes provisions to assess the reasonableness of an employee’s decision to disconnect. Factors such as the reason for contact, the method and frequency of communication, the employee’s compensation, role responsibilities, and personal circumstances (e.g., family or caregiving duties) will be considered. If an employee's role inherently requires interaction with international markets or colleagues, a blanket refusal to engage outside regular hours may be deemed unreasonable. For instance, refusing to attend a critical early morning meeting due to routine family obligations could lead to scheduling adjustments, highlighting the importance of flexibility.

These regulations also introduce a layer of risk for employers, particularly in managing performance and setting expectations for availability and responsiveness. Employers must tread carefully, balancing respect for employees’ rights with the operational demands of a global business. These new standards empower employees to set clearer boundaries between work and personal life, reinforcing the importance of mutually agreed-upon expectations in an increasingly flexible and connected world.

Consequences for Non-Compliance

Failure to comply with the Right to Disconnect laws can result in significant penalties. Breaches of stop orders from the Fair Work Commission related to after-hours contact can lead to fines of up to $18,780 per breach for individuals and $93,900 per breach for companies. Employees also have the right to seek orders to prevent after-hours contact or retaliation from employers.

Employers should clearly define work hours and establish expectations around after-hours contact. Using tools like delayed email sending and clearly communicating boundaries can help minimise disruptions and protect both employees and businesses from legal issues. Reviewing and revising employment contracts to reflect these new rights and responsibilities is also recommended.

The Right to Disconnect is a significant step toward ensuring employees have the opportunity to maintain a healthy work-life balance. For sales professionals, finding the right balance between responsiveness and personal time is essential. By understanding these new regulations and preparing appropriately, tech and sales professionals, along with their employers, can maintain productivity without sacrificing personal well-being.