- Published
Employers in Australia can only stand down an employee without pay in limited circumstances.
Under the Fair Work Act 2009, this generally applies where an employee cannot be usefully employed due to reasons outside the employer’s control.
When stand down may apply
This may include situations such as:
- equipment breakdown
- stoppage of work
- natural disasters or external disruptions
The key requirement is that the employee cannot be usefully employed, not just that work is reduced. The nature of work when Covid-19 hit was an example of this.
Where employers get caught out
Stand down cannot be used simply because:
- there is less work available
- business is slow
- it is a cost-saving measure
Misusing stand down provisions can lead to costly mistakes, disputes and claims.
What employers need to remember
Stand down without pay is a high-risk area and should only be used where the legal requirements are clearly met.
If there is any uncertainty, employers should seek HR or legal advice before proceeding.
