The Right to Disconnect has proven to lift productivity, claims report

AHRI released a report today (20 May) on International HR Day, claiming that the Right to Disconnect is having a real impact on workforce productivity despite critics saying otherwise.

The Australian HR Institute’s (AHRI) Quarterly Work Outlook report released on International HR Day has revealed that 58 per cent of employers claim that the Right to Disconnect (RTD) has improved employee engagement and productivity – with 37 per cent having observed a reduction in employee stress.

The report – based on findings from over 600 senior business decision-makers – contradicts previous discourse covered on HR Leader that labelled the RTD as a rather placid form of IR legislation.

When former Coalition party leader Peter Dutton was proposing slashing the RTD legislation during his campaign, it reignited debate around the purpose of the legislation, with Sean Melbourne, director of Source Legal and Workplace, arguing that media coverage “overhyped” the legislation.

“While there was a lot of media attention on the Right to Disconnect when it was introduced, because of the way the [RTD] was framed, its effect on workplaces has been fairly limited,” Melbourne said.

“When the Right to Disconnect laws were introduced last August, I commented that I thought it was one of the biggest non-events of the year. Most employment lawyers agreed with me, and I think that’s pretty much how it turned out. If the Coalition rescinds the Right to Disconnect laws, there would probably be a brief media frenzy again, but after that, I think few people would notice the difference.”

Melbourne was not isolated on his opinion, as before the Right to Disconnect came into place, many critics expressed that the legislation would have an adverse effect on businesses.

“The Right to Disconnect law, for instance, adds to the compliance burdens, despite its intentions, contributing to a landscape that seems increasingly hostile to business owners,” said Employment Hero chief executive Ben Thompson.

“Far from fostering an environment conducive to growth and innovation, the introduction of the ‘Closing Loopholes’ legislation appears to tighten the noose around the necks of SME owners, introducing penalties so severe they could easily dismantle the dreams of many Australian entrepreneurs.”

“With fines reaching millions of dollars, even minor breaches could spell disaster for businesses, particularly family-run establishments that might misinterpret the law.”

Despite these stances against the legislation, the AHRI report found that almost four in 10 employers (39 per cent) noted an improved work/life balance among staff since the RTD came into effect – with just 3 per cent observing a negative change.

AHRI chief executive Sarah McCann-Bartlett said that overall, employers saw positive outcomes out of recent workplace legislation and that for many, it was adding to workplace productivity – but at the same time, a focus must still be spent on upskilling their workers.

“Although conditions in the Australian labour market have eased slightly compared with a year ago, the market remains tight. Many organisations continue to contend with rising wage pressures and persistent challenges in both attracting new employees and retaining existing ones.

“There is an opportunity for organisations to focus on strategic workforce planning and invest in the people practices that will sustain performance and resilience in the long term,” said McCann-Bartlett.