What is a Notice to End Stand Down?

There is a provision that allows an employer to deduct monies for any time an employee cannot be usefully employed through certain stoppages of work occurring through no fault of the employer.

Under the Fair Work Act, an employer may stand down an employee during a period in which the employee cannot be usefully employed because of one of the following circumstances:

• industrial action (other than industrial action organised or engaged in by the employer, e.g. a lockout by the employer);
• a breakdown of machinery or equipment, if the employer cannot reasonably be held responsible for the breakdown; and
• a stoppage of work for any cause for which the employer cannot reasonably be held responsible (floods, fire, power failure).

When you are ready to end this stand period, either because you plan to re-open of because you are taking advantage of the job-keeper payment, you need to notify your staff.

Download your free copy of this notice to end stand down template now.

Job Keeper vs Stand Down

The Australian government announced a $130 billion JobKeeper payment package to support affected businesses and their employees through the COVID-19 pandemic. The economic impact of the pandemic has been felt widely across Australia with hundreds of thousands of individuals being made redundant, stood down or experiencing reduced work.

It’s expected that around 6 million Australians will be eligible for this payment. Eligible employers will receive a $1,500 payment per fortnight, per eligible employee for the next 6 months to assist with the economic impact caused by COVID-19. This package has been announced to lessen the financial pressures on businesses and their employees, and ultimately allow them to easily start over when we’re on the other side of this crisis.

The idea is that you can can keep your employees on the books and ’employed’ whilst your business is forced to close or experiencing a downturn. To learn more about the Job Keeper payment, head here.

Are you allowed to stand down staff?

The only businesses that are allowed to stand down staff are those on the offical list of customers. Make sure you stay up to date on forced closures. 

Entitlements while stood down. 

Employees while stood down are still entitled to take any paid leave owed to them in this period. They are also entitled to public holiday pay. Their leave will also accrue in this time.

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