The Australian government has granted millions of workers the legal right to disconnect from after-hours communications, igniting debate among corporate leaders.
For wealth advisors and RIAs, this development raises questions about balancing professional responsibilities with personal time. High-net-worth clients may expect round-the-clock service, but legal trends like this one could impact how firms approach client communication and staff availability.
Kevin O’Leary, renowned for his role on Shark Tank, strongly criticized the new Australian law, describing it as impractical for business operations. “It’s crazy,” the businessman said on Fox News. “Who comes up with this nonsense? How can anyone think that shutting off communication after work hours is a good idea?”
The law, enacted on August 26, mirrors similar legislation in France and Spain, allowing workers to disconnect from phones, laptops, and messaging apps during personal time, with exceptions only if refusing to engage is deemed unreasonable. As more countries adopt such laws, wealth management firms need to assess how these changes affect their operational structures.
O’Leary expressed disbelief that a manager’s late-night texts or emails might go unanswered. “What if something happens at the office after hours, or you have an urgent client issue that needs immediate attention? Waiting until the next business day isn’t always an option in this industry,” he argued.
O’Leary’s hardline stance reflects a common expectation among high-net-worth clients who anticipate immediate responses, regardless of time. In the world of wealth management, after-hours requests can be critical, ranging from market updates to portfolio changes or urgent tax-related queries. For RIAs, maintaining strong client relationships often means being accessible when it counts the most. In this context, O’Leary’s sentiment about firing staff for not being available in emergencies may resonate with firm owners and senior advisors alike.
“If you can’t be reached when it’s critical to the job, you’re out,” O’Leary said, suggesting that silence during off-hours could cost employees their jobs.
The Australian law does acknowledge different levels of urgency and job roles. Senior employees, for instance, are likely to have a greater expectation of responding to after-hours communication, while junior staff may not face the same pressure. This approach provides some flexibility, particularly in industries where high-level advisors are more likely to be on call.
Before becoming a prominent investor and television personality, O’Leary co-founded SoftKey, later acquired by Mattel for $4 billion. His extensive experience in managing businesses likely informs his views on maintaining continuous operational efficiency—a priority that RIAs share when managing client portfolios and addressing urgent matters in a volatile financial environment.
Despite O’Leary’s concerns, Australian officials argue that the new legislation supports a healthier work-life balance, which is increasingly seen as essential to long-term employee retention. “In an emergency, of course, employees are expected to respond,” said Murray Watt, Australia’s minister for employment and workplace relations, in a recent interview. “But if it’s something routine—like a non-urgent email—that can wait.”
Wealth advisory firms should consider how such legal shifts might impact their operations, particularly as more countries adopt policies that allow employees to unplug from work. Advisors accustomed to 24/7 availability for their clients may find it challenging to reconcile the law’s intentions with the expectations of high-net-worth individuals who expect timely service.
Companies that violate the law face potential civil fines of up to $19,800, a penalty that RIAs operating in Australia or similar markets may need to account for in their compliance strategies.
Senior staff, including managing partners and lead advisors, might remain reachable for urgent matters, but the law’s protections could empower junior employees to set boundaries around their personal time. RIAs may need to evaluate their team structures and communication protocols to ensure they align with both regulatory requirements and client needs.
Watt emphasized the law’s goal of restoring balance between work and personal life, especially as unpaid overtime hours often pile up in professions where constant connectivity is expected. For the wealth management sector, which already grapples with long hours and demanding client expectations, striking this balance may involve redefining roles and responsibilities within advisory teams.
As firms navigate this evolving legal landscape, implementing clear policies on after-hours communication will be crucial. Advisors may benefit from reviewing their firm’s approach to emergencies, particularly when working with clients who have time-sensitive needs. A well-structured team can ensure that essential matters are handled promptly, without overburdening individual employees.
Ultimately, RIAs must recognize that while accessibility is vital in wealth management, employee well-being and regulatory compliance are equally important. Adjusting to these legal changes will likely require thoughtful planning, but doing so may improve long-term employee satisfaction and retention, which benefits both firms and clients in the end.
