Australian insurance businesses are facing a significant shift in workplace law, as employees in small businesses are now legally entitled to disregard work-related communications outside their scheduled hours, unless the contact is considered “reasonable.”
This expansion of the Right to Disconnect, which previously applied only to large organisations, took effect for small businesses this week.
The change has already prompted legal action, with a Queensland teacher seeking nearly $800,000 in damages from a former employer over after-hours communications.
Lyndon Burke, founding partner at Burke Mangan Lawyers, said: “Cases like this show the law isn’t just a symbolic change – there’s real legal and financial risk for employers who get it wrong. If you haven’t updated your policies and trained your managers, you could be next.”
Unlike larger insurance companies that may have dedicated human resources teams, smaller insurance firms must meet the same legal standards with fewer internal resources.
“The law doesn’t care if you have five employees or 5,000,” Burke said. “If you breach these new rules, the penalties and reputational damage can be devastating.”
Burke noted that compliance is not solely about avoiding penalties.
“Proactive compliance isn’t just about avoiding fines – it’s also good for business,” he said. “Getting this right builds trust with your staff, reduces...
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