Standing Down Employees

With peak harvesting period happening in some commodities there are often machinery breakdowns.  We are often asked what happens in terms of keeping employees at work and what is paid to those employees who cannot work because of the breakdown.

The Fair Work Act provides that an employee can be stood down if there is;

  1. A breakdown of machinery or equipment if the employer cannot reasonably be held responsible for the breakdown, or

  2. A stoppage of work for any cause for which the employer cannot reasonably be held responsible (examples include such things as a lack of supply, a natural disaster)

Employers cannot stand an employee down just because the business is quiet or there isn't enough work.

Employers should consider all available options before making the decision to stand down their employees. For example, is there other work the employee could do until the machinery is fixed.

During a stand down, an employee does not have to be paid, but does accrue leave based upon their normal hours of work, and must be paid for any public holiday that occurs during the standdown.

You may agree that the employee can use their annual leave or even TOIL hours, but they cannot use paid sick leave or compassionate leave.

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