One of our team’s most common questions right now is: “Can I stand down employees?” When work stops, what are the rules? You must understand your legal responsibilities as an employer.
What Does “Standing Down Employees” Mean?
Basically, a stand-down is appropriate when staff cannot be usefully employed due to a work stoppage beyond the employer’s control. The COVID-19 situation is a perfect example of this. In these cases, you may stand down a group of employees without pay for the necessary duration.
Important Steps Before Standing Down Staff
A stand-down is a serious last resort. We recommend following these steps first:
1. Discuss Annual Leave
Talk to your employees about taking their accrued annual leave. This can provide a buffer for both the business and the staff.
2. Evaluate Long-Term Effects
Think about your company culture. Can your business afford the impact of standing down staff? Is it legal in your specific case?
3. Check Modern Awards
Some modern awards include specific shutdown provisions. Check the Fair Work Ombudsman website to see if these apply to you.
Legal Compliance and Advice
Your actions must comply with current legislation. We suggest you our website before taking any steps. If your enterprise agreement mentions stand-down provisions, you may also need formal legal advice. We are happy to point you in the right direction.
Is There a Genuine Stoppage of Work?
The main factor is whether a genuine full stoppage exists. A simple slowdown is not enough. Consider these four questions:
- Is the stoppage genuine? Government mandates often make this answer “yes.” However, a slow period due to social isolation is different.
- Is it outside your control? You cannot legally stand down employees for poor business performance caused by your own internal reasons.
- Is the stoppage temporary? This process assumes you want your employees to return in a few months.
- Can you redeploy staff? Check if employees can perform other useful duties within the business.
If this all seems too hard, if you are unclear on the steps, or afraid that you would make a mistake, give us a call on 1800 577 515 or email at info@assurancehr.com.au. Alternatively you can book a video chat
