New Rights for Small Business Employees: Disconnecting After Hours and Pathway to Permanent Work

From today, being 26 August 2025, employees in small businesses (i.e., those with 14 or less employees) have gained two important new protections under the Fair Work Act. The right to disconnect and the right for eligible casuals to request permanent employment.

The right to disconnect means small business employees can now refuse to monitor, read or respond to calls, texts or emails outside working hours, unless refusing would be unreasonable. Factors such as the reason for the contact, the employee’s role and responsibilities, their personal circumstances, how disruptive the contact is, and whether they receive extra pay for being on call, all determine whether refusal is reasonable. Employers are not banned from contacting staff, but employees cannot be punished for setting boundaries. Disputes should first be handled in the workplace, but if unresolved, the Fair Work Commission can step in and even issue binding orders.

The second change is the employee choice pathway. Casuals working in small businesses who have been employed for at least 12 months, and believe they no longer meet the definition of a casual, can now notify their employer in writing that they want to move to permanent part-time or full-time work. Employers can only refuse if the worker still meets the casual definition, if there are fair and reasonable business grounds, or if accepting the request would breach a law or recruitment process.

Both reforms bring small business employees into line with workers in larger businesses, who gained these rights earlier. Together, they give staff greater security; the ability to protect their personal time and, for casuals, a clear path to more stable employment.