From August 26, 2025, small businesses in Australia are dealing with two major workplace law reforms introduced under the Fair Work Act’s Closing Loopholes initiative. The Right to Disconnect and the Employee Choice Pathway for casual employment are now in effect for businesses with fewer than 15 staff. These changes are designed to improve work-life balance and employment stability for employees.
Understanding the Right to Disconnect
The Right to Disconnect gives employees the legal right to refuse to check, read, or respond to work-related contact outside their designated working hours, unless their refusal is considered unreasonable. This includes contact from employers or third parties such as clients. The law doesn’t prohibit contact completely, but it does empower employees to set boundaries around their personal time.
The Fair Work Ombudsman has outlined several factors that must be considered when deciding whether a refusal is unreasonable. These include the reason for the contact, the nature of the employee’s role and responsibilities, the employee’s personal circumstances, including family or caring duties, how disruptive the contact is, and whether the employee receives more compensation for availability. Employers are encouraged to have open conversations with staff to set expectations and avoid misunderstandings.
Employee Choice Pathway for Casual Workers
The second reform, the Employee Choice Pathway, allows eligible casual employees to formally request conversion to permanent employment. Casuals who have been employed for at least 12 months can issue a written notice to their employer requesting a change to full-time or part-time status. Employers must respond in writing and can only refuse the request based on valid operational reasons or if the employee still meets the definition of a casual worker, as set out by the Fair Work Ombudsman.
The Fair Work Ombudsman website provides templates and checklists to help both employees and employers navigate this process properly. This reform gives long-term casual employees more certainty about their employment status while ensuring employers keep operational flexibility where genuinely needed.
Implementation Support and Resources
These reforms are part of a broader effort to modernise Australia’s workplace laws and ensure fair treatment across all sectors. The Fair Work Ombudsman’s Right to Disconnect guidance includes videos, guides, and multilingual resources to support small businesses in implementing these changes effectively. Employers are recommended to review internal policies, train managers, and use the available tools to ensure compliance and foster a respectful workplace culture.
Perspective from Director Leap29 – Simon Duff
“These reforms represent a step forward in creating fairer, more balanced workplaces. The Right to Disconnect encourages healthier boundaries between work and personal life, which in turn supports long-term productivity and employee wellbeing. At the same time, the Employee Choice Pathway offers casual workers the stability they often lack, while still giving businesses the flexibility they need to operate effectively. For small businesses, the challenge will be adapting quickly, but those who embrace these changes proactively will likely see stronger employee engagement and retention as a result.”
How Leap29 Australia EOR Can Support
These new workplace law requirements can be complex for small businesses without dedicated HR resources. Leap29’s EOR Services for Australia can help manage compliance with both the Right to Disconnect and Employee Choice Pathway requirements. Our team stays current with Australian employment legislation changes and can help with policy reviews, employee communications, and handling casual conversion requests in accordance with Fair Work Ombudsman guidelines. With our EOR solution, you can focus on your business operations while we ensure your employment practices meet these new regulatory requirements.
