“Right to disconnect” could hit small businesses hardest

THE new national “right to disconnect” laws recently passed by the Albanese Government could “inadvertently undermine” small businesses in particular, according to Geelong Chamber of Commerce chief executive officer Jeremy Crawford.

Labor has found the votes in Parliament to finally push the workforce relations legislation through, which includes creating the legal right for employees to not answer phone calls or monitor or respond to emails outside of working hours.

Employers are also prohibited from asking employees to do so, except in cases of emergency, for welfare reasons, or when the employee is receiving an “availability allowance”.

There are also more rights for gig economy workers, and for casual workers seeking to work full time.

“The reforms, though aiming to address long-standing issues in workplace relations, are feared they might inadvertently undermine the agility of businesses and introduce a layer of complexity, cost, and bureaucracy that could disproportionately impact small-medium operators,” Mr Crawford said.

He said the changes were a shift towards protecting workers’ rights “but do have the potential to present more challenges and more adjustments for businesses, especially small business, which must navigate new complexities and possible increased operational costs… (and) may stifle the flexibility and adaptability that small businesses need to thrive”.

“Unlike larger corporations, small-medium enterprises often lack the legal and administrative resources to navigate through increased regulations, making it more challenging to compete and innovate.

“This situation could lead to a dampening of entrepreneurial spirit and a reduction in job creation, particularly in regions like Geelong where small businesses are vital to the local economy.”

Mr Crawford said the changes may have wider implications and “raise questions about Australia’s attractiveness as a destination for business investment and talent”.

“At a time when global competitiveness is more important than ever, and fast-growth regions such as Geelong are attracting international investment interest, policies that add to the operational burdens of businesses could inadvertently push investors and entrepreneurs to look elsewhere, impacting our economic growth and prosperity in the long term.”

Prime Minister Anthony Albanese has defended the necessity of legislating the “right to disconnect”.

“What we’re simply saying is someone who’s not being paid 24 hours a day shouldn’t be penalised if they’re not online and available 24 hours a day,” he said on Sunday.

“And indeed, many companies and businesses have exactly these systems in place now.”

On Sunday, Opposition Leader Peter Dutton said the Liberals would repeal the laws if his party won the next federal election.