The Fair Work Legislation Amendment (Closing Loopholes (No. 2)) Act 2024 (Cth) amended the Fair Work Act 2009 (Cth) to include a new ‘right to disconnect’, to take effect from 26 August 2024. The commencement date is 26 August 2025 for small business employees.

The Fair Work Act 2009 (Cth) also required the Fair Work Commission to vary modern awards to include a right to disconnect term.

On 23 August 2024, the Fair Work Commission published a decision setting out its approach to the content of the right to disconnect term in all awards, which also commenced operation from 26 August 2024.

This Member Advice provides an overview of the content of the new modern award term, and its implications for employers.

Although the Fair Work Commission has taken a ‘minimalist’ approach in developing the new award term, in line with Ai Group’s submissions, the term does impose some additional requirements on employers. This includes a requirement that employers not, directly or indirectly, prevent an employee from exercising the new right.

The Fair Work Commission is required to ultimately produce guidelines concerning the right to disconnect, but it has declined to do so at this time.