Australian businesses face new 'Right to Disconnect' laws

Australian workforce optimisation provider, nimbus, has highlighted potential productivity gains from new Federal Right to Disconnect (RTD) laws set to come into force on August 26. These laws will limit contact between workers and managers after hours, presenting both a challenge and an opportunity for businesses.

nimbus, known for its workforce management software, including a Do Not Disturb (DND) feature, has suggested that many Australian companies are at risk of non-compliance but also stand to gain through increased staff loyalty and productivity. Grant Custance, CEO of nimbus, stated, "nimbus has a long history of innovating ahead of changes to workplace regulations and the Do Not Disturb feature is another example of it. We are ahead of the regulators and the industry in general."

Mr Custance argued that the new laws, while ensuring companies adhere to stricter regulations, provide a platform for better management-workforce collaboration. "The new laws provide an opportunity for greater management-workforce collaboration, leading to higher productivity, fewer sick days, lower staff turnover, improved morale, and workforce loyalty – as well as improved workplace safety by reducing the risk of worker fatigue in some industries," he said.

He further explained the potential benefits for companies adopting these laws, especially those making use of the nimbus DND feature. "Far from being a drag on productivity, these new RTD laws could help improve it. If organisations accept that they must now collaborate with their staff and provide them with the tools to improve their work-life balance, it is possible for businesses to use these new laws to introduce greater clarity and shift/training optimisation for staff."

Data from nimbus's own analysis of its retail clients suggests promising trends. Findings indicate that retail companies using the DND feature have seen a 40 per cent increase in staff retention. Analysis of around 24,000 workers from some of Australia’s notable retailers over the past five years showed that more than 14,000 had opted to use the DND feature, enhancing job satisfaction and longevity.

Michael Clark, CEO of CXTT Consulting and former Executive Director at the Fair Work Ombudsman, emphasised the significance of the RTD laws. "There is no doubt that as with any legislative change, the regulators will be looking for some early wins and case studies of what not to do around non-compliance of the Right to Disconnect law. The time where a 6am message or call from the boss to come into work today is over!"

Clark highlighted that the right to disconnect would shift control over communication timing to employees, fostering greater job satisfaction. However, he noted a lag in preparedness among some businesses, particularly those with customer-facing roles. "This seems to be the case the most with customer service facing organisations, including contact centres and retail, where many younger and less experienced staff are employed," he observed.

Through the nimbus mobile application, employees can set their offline hours, preventing undue after-hours contact unless for exceptional reasons. The app allows staff to modify their connection status as needed for shift variations or additional requests, reflecting the agile nature of nimbus's workforce management technology.

As the RTD deadline approaches, the adoption of such technological solutions may be crucial for businesses aiming to navigate these regulatory changes effectively. The onus remains on organisations to equip their workforce with appropriate tools to ensure compliance and reap the potential benefits of improved employee satisfaction and productivity.