The Right to Disconnect

Balancing Digital Innovation with Employee Wellbeing

Why the Right to Disconnect is a transformation issue

When discussing transformation, the focus is often on systems, technology, or strategy. But as Uthpala Senarathne Tennakoon, PhD, explains in this episode of Transformation 2.0®, those changes don’t stick unless people feel both a sense of belonging and balance in their work lives.

The Right to Disconnect legislation, which comes into effect for small businesses on 26 August 2025, is not just a compliance obligation. It represents a cultural shift in how organisations view wellbeing and performance.

For leaders, this means transformation isn’t only about strategy and digital tools, it’s about embedding trust, psychological safety, and respect for boundaries into the workplace.

What the law says

The Fair Work Legislation Amendment (Closing Loopholes No. 2) Act 2024 introduced the Right to Disconnect into the Fair Work Act 2009.

Here’s what matters for leaders:

  • Timing: Applies to most national system employers from 26 August 2024; small businesses from 26 August 2025.
  • Employee rights: Workers can refuse to monitor, read, or respond to employer contact outside work hours.
  • Reasonableness test: Refusals may be deemed unreasonable depending on:
    • The reason for the contact
    • The method and level of disruption
    • Whether employees are compensated for out-of-hours availability
    • The employee’s role and responsibilities
    • Personal circumstances (e.g., caring responsibilities)
  • Workplace protections: Exercising this right is protected by law. Employees cannot be penalised or disadvantaged for saying no.

(Disclaimer: This episode and article do not constitute legal advice.)

Why belonging still matters

The Right to Disconnect sets the legal baseline. But compliance alone doesn’t create cultural change. For transformation to succeed, belonging and trust are essential.

Where companies often fall short:

  • Treating inclusion as a checkbox exercise
  • Assuming belonging will “just happen” in hybrid teams
  • Rolling out tools but neglecting psychological safety
  • Tracking diversity without measuring whether people feel included

What leaders can do differently

From our conversation, Uthpala highlighted five critical shifts:

  1. Design for contribution, not just presence
    Inclusion means creating environments where people can make meaningful contributions.
  2. Normalise boundaries
    Respecting the Right to Disconnect should be part of cultural norms, not seen as a legal box-tick.
  3. Tackle systemic barriers
    Equity must extend to hiring, promotion, and work allocation.
  4. Prioritise psychological safety
    Innovation flourishes when people know it’s safe to speak up.
  5. Measure belonging and balance
    Track belonging and workload health the same way you track performance.

The transformation–belonging connection

Transformation depends on behaviour change. And behaviour change depends on trust, safety, and respect for boundaries.

When leaders align the Right to Disconnect with a culture of belonging, they unlock conditions where people:

  • Engage more deeply
  • Take risks and innovate
  • Commit to the organisation’s vision
  • Adapt to new ways of working

Conclusion

Sustainable transformation isn’t just about technology or processes. It’s about creating a culture where people can thrive, by protecting their right to disconnect and ensuring they feel a genuine sense of belonging.

🎧 Listen to Episode 10 of Transformation 2.0®: The Right to Disconnect: Balancing Digital Innovation with Employee Wellbeing to discover how to integrate belonging and boundaries into your leadership and culture.