Case Study: Right to Disconnect Laws and the First Legal Challenge Ahead of Small Business Rollout

As of Tuesday, 26 August 2025, Australia’s Right to Disconnect laws will apply to small businesses with fewer than 15 employees. While larger employers have had over a year to adjust to these changes, the real test is only just beginning — both in courtrooms and in boardrooms.

The first major legal challenge under the new legislation has already emerged, drawing the attention of business leaders across the country. The outcome could set a precedent for how courts interpret these rights and how employers should manage out-of-hours communication going forward.

The Case: Queensland Teacher Seeks $780,000 in Damages

A Queensland teacher is making headlines after filing a claim under the Right to Disconnect laws, seeking $730,000 in lost future earnings and $50,000 in damages for emotional distress.

The teacher alleges that she was unfairly dismissed for not responding to serious misconduct allegations sent during her school holiday leave — a period she believed to be off-duty. Her failure to reply within a specified timeframe, and a denied extension request, resulted in termination.

Adding complexity, she also claims to have been targeted after raising concerns about child safety and staff review processes, pointing to broader allegations of adverse action.

With the teacher asserting that the misconduct messages were sent outside her working hours, this case directly raises the question: When does the Right to Disconnect truly apply?

Legal Grey Areas and What's at Stake

Legal experts say this case tests the edges of the law, especially concerning disciplinary procedures during employee leave. According to Amy Zhang, Executive Counsel at Harmers Workplace Lawyers:

“What seems to be in dispute in this case is whether the requirement to respond was, properly characterised, outside of working hours and thus whether the right to disconnect is engaged at all.”

If the court rules in the teacher's favour, it could solidify employees’ rights to ignore even serious work communications during protected time off, setting a strong precedent as the law expands to smaller employers.

What Can Small Businesses Do to Prepare?

With the Right to Disconnect laws imminent for small businesses, the case serves as a powerful reminder: failing to adapt now could mean facing serious legal and financial consequences later.

Key Actions for Employers:

1. Update Employment Contracts

   • Clarify out-of-hours expectations.

   • Include compensation details if availability is expected.

2. Create or Revise Communication Policies

   • Define “reasonable” after-hours contact.

   • Offer real-life examples (e.g., emergencies, urgent staffing issues).

3. Train Managers

   • Educate staff on lawful communication and employee rights.

   • Reinforce that adverse action following disconnection may be unlawful.

4. Implement Dispute Resolution Protocols

   • Encourage internal dialogue before escalating.

5. Document All Expectations Clearly

   • Outline work hours, contact protocols, and leave procedures in position descriptions and policy manuals.

The Bottom Line

The Right to Disconnect is more than a feel-good workplace reform — it’s a legal obligation. As this test case unfolds, it’s vital for small business owners to act now.

Set expectations, document everything, and respect boundaries.

Whether or not the court rules in the teacher’s favor, one thing is clear: the era of 24/7 availability is ending — and businesses that don’t adapt may find themselves on the wrong side of the law.

How Can Essential HR Help?

At Essential HR, we specialise in helping small businesses stay compliant, confident, and protected. Our team of HR experts can support you to:

• Audit and update employment contracts and job descriptions in line with the new laws

• Create clear workplace policies that define reasonable after-hours contact and escalation protocols

• Deliver tailored manager training so your leadership team understands their responsibilities under the Right to Disconnect

• Provide guidance on disciplinary processes and risk mitigation, especially when navigating grey areas

• Support you in Fair Work matters, including dispute resolution and compliance checks

The Right to Disconnect may feel like just another regulatory hurdle—but with the right support, it can be an opportunity to build a healthier, more sustainable workplace culture.

Contact Essential HR today to prepare your business ahead of the 26 August deadline — and ensure you’re protected no matter what challenges arise.