ESG Post

Corporate Governance

New law to curb Australia’s ‘always-on’ work culture

Australia, once a pioneer in setting work limits, is taking a bold step to address the growing concern over extreme working hours. Starting 26 August, a new “right to disconnect” law has come into effect, aiming to set clear boundaries in an increasingly hyper-connected world. This move is part of a global trend to protect workers’ well-being in the digital age, but questions remain about its effectiveness in curbing Australia’s deeply ingrained workaholic habits.

Historically, Australia led the way in labor rights when Victorian stonemasons won the world’s first eight-hour workday in 1856. However, modern-day Australians are now among those working “extreme and excessive” hours, driven by new digital tools and flexible work models that make it the norm to be constantly contactable. Research has shown that many Australians are at “high risk” of work addiction, with the nation’s work-life balance faring worse than in many other countries.

The new laws apply to businesses with 15 or more employees and are designed to help workers reclaim their personal time. Under the legislation, employees will have the right to refuse to monitor, read, or respond to work communications outside of their regular hours, unless such refusal is deemed unreasonable. However, the law does not prevent managers from contacting employees, raising concerns about the potential effectiveness of the policy.

John Hopkins, a professor at Swinburne University’s School of Business, Law, and Entrepreneurship, noted that similar laws have been adopted in up to 25 countries, with promising results. “This is a step in the right direction,” he said, pointing to France, which in 2017 became the first country to require companies to negotiate agreements on after-hours communication. Although fines for breaching these laws are rare, they do occur, with one French company ordered to pay a former employee €60,000 ($99,000) for requiring him to keep his phone on at all times.

Research from the European Union’s Eurofound agency shows that “right to disconnect” policies have led to improved well-being and job satisfaction in countries like Belgium, France, Italy, and Spain. However, the agency also cautioned that such policies alone are insufficient to bring about lasting cultural change in the workplace.

While the new laws represent a strong step forward, experts like Dr. Rachael Potter from the Centre for Workplace Excellence at the University of South Australia believe it will be challenging to shift behaviors without clear enforcement. “It’s a very positive step forward, but it will still be quite challenging to ignore a manager if they contact you out of hours,” she said, adding that the onus is on employers to set the tone.

Despite these challenges, the new laws send a clear message: Australians deserve the right to disconnect. Professor Hopkins hopes the laws will spark important conversations about work-life balance, even if the changes are subtle. “It’s not going to eliminate contact at all,” he said, “but hopefully we’ll reduce it and encourage those conversations.”

Dr. Potter advised employees to start by setting their own boundaries, such as turning off notifications and removing work emails from their phones. While the effectiveness of the new laws remains to be seen, they are a critical step towards addressing Australia’s workaholic culture and ensuring that employees can reclaim their personal time.