Right to Disconnect will ‘tighten the noose around the necks of SME owners’

Although the Right to Disconnect isn’t set to come into effect for small businesses for another year, detractors believe the writing is on the wall for what they claim is another unwarranted regulation that could spell disaster.

As the much anticipated and discussed Closing Loopholes legislation has finally come into effect, the discourse is still raging on, with critics professing that the regulations for SMEs across Australia.

Agreeing that the workplace law changes are well intentioned is Employment Hero chief executive Ben Thompson; however, he argues that the newly introduced laws will do more harm than good for Australian SMEs, which could catch major financial penalties if these new changes aren’t followed.

“It’s time to spotlight the trials and tribulations facing Australian SMEs. We need a balanced dialogue that considers the impact of overregulation on the entrepreneurial spirit and seeks solutions that encourage innovation, enhance global competitiveness, and support the growth of the Australian economy. Our SMEs, entrepreneurs, and local businesses deserve a fighting chance to thrive in a challenging world,” said Thompson.

Thompson argued that regulations such as the Right to Disconnect can impact the viability of starting a business. Due to what Thompson describes as “debates and political manoeuvres”, the once sought-after venture of becoming a business owner has become deeply disinclined as the landscape has become more hostile.

“This situation raises critical questions about the viability of starting and running a business in Australia. Beyond the debates and political manoeuvres, the real impact on employers and Australia’s position in the global employment market seems to be an afterthought,” he said.

“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.”

“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,” said Thompson.

These potential fines and penalties that could be inflicted upon Aussie SMEs will, without a doubt, destabilise their outcomes. However, there are various countermeasures that can be put in place to avoid this possibility, with one being clear boundaries between an employer and their employee.

Communication in regard to workplace changes is key for SMEs if they want to avoid such penalties, and it’s definitely achievable. Thompson still believes it’s a heavy price for SMEs to pay.

“But whether you agree or disagree with these new regulations, and how strict they may remain, they don’t come without a heavy price to pay for SMEs,” said Thompson.

“The complexity of ever-changing industrial laws in Australia, long recognised as some of the most intricate worldwide, has reached a new height, confusing SMEs and putting their spirit of entrepreneurship and innovation at significant risk.”