Stand down

When is a stand down lawful?

Three conditions have to hold: there is a stoppage of work, the employee cannot be usefully employed because of it, and the cause is one the employer cannot reasonably be held responsible for. Natural disasters, government-ordered closures, industrial action not organised by the employer and major equipment failure are the classic cases. An enterprise agreement or contract can also contain its own stand down clause, which then applies instead of the Act's.

What a stand down is not

A downturn in demand is not a stand down. Quiet trading, lost contracts and cost pressure are business risks the employer carries, and the response to them is redundancy, reduced hours by agreement or restructuring, each with its own obligations. Using stand down to avoid redundancy pay is the misuse that ends up in front of the Fair Work Commission.

What happens to pay and entitlements during a stand down?

Employees are unpaid during a lawful stand down unless a contract, award or agreement says otherwise, but the employment relationship continues. Service keeps accruing, leave keeps accruing, and employees can take paid annual leave during the period if the employer agrees. Public holidays that fall during a stand down are still payable.