Right to disconnect laws lifts staff engagement, productivity: Australian HR Institute report

More than half of employers say new laws cracking down on workplace communications after business hours have led to an increase in productivity and lower employee stress, according to a new report.

Under contentious right to disconnect laws, which came into effect for most workers last August, employees are allowed to reasonably refuse to respond during out-of-work hours. This includes not having to take calls or answer to emails.

Many employer groups hit out against the laws, flagging concerns about vexatious claims going to the Fair Work Commission.

But in its new outlook report for the upcoming June quarter, the Australian HR Institute found nearly 60 per cent of employers said the right to disconnect had improved staff engagement and productivity, while 37 per cent observed a reduction in employee stress.

The survey of over 600 senior business decision-makers — including HR officers — found 39 per cent reported improved work-life balance among staff since legislation came into effect, with just 3 per cent observing a negative change.

AHRI chief executive Sarah McCann-Bartlett said overall, employers saw positive outcomes from recent workplace legislation.

“It’s not necessarily surprising that actually if they’ve been implemented well in the organisation through their HR teams and their managers, that employees have actually seen a positive outcome for themselves and then that has positively led to higher employee engagement,” she said.

“What we were slightly surprised about was the extent of how positive employers have seen these changes.”

Other key findings from the report show 64 per cent of employers plan to hire staff in the June quarter, with recruitment intentions higher in the public sector at 77 per cent compared with the 61 per cent in the private sector.

Employers also expect wages to grow 3.3 per cent over the next 12 months, up from 3 per cent in the March quarter.

“Although conditions in the Australian labour market have eased slightly compared with a year ago, the market remains tight,” Ms McCann-Bartlett said.

“Many organisations continue to contend with rising wage pressures and persistent challenges in both attracting new employees and retaining existing ones.”