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).
In simpler terms, some events such as Covid-19, natural disasters or mechanical failures may result in an employee being unable to work in a useful capacity. In this event, an employer will stand down employees until the issue is resolved.
When you are ready to end this stand period, either because you plan to re-open or 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.
Are you allowed to stand down staff?
The only businesses that are allowed to stand down staff are those on the official list of customers. Make sure you stay up to date on forced closures.