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Cyclones and Floods: Understanding Stand Downs and Wages

By Chris Green
Mar 7, 2025
Cyclones and floods affecting businesses and employees

Workplace Rights and Responsibilities During Natural Disasters

Natural disasters can significantly impact workplaces, potentially leading to temporary closures or employee stand-downs. Both employers and employees must understand their rights and responsibilities in such situations. Before deciding to stand down employees, employers should explore all available options.

Stand Downs

Under the Fair Work Act, an employee may be stood down if they cannot perform useful work due to circumstances beyond the employer’s control, including:

  • Equipment breakdowns not caused by the employer
  • Industrial action not organized by the employer
  • Work stoppages due to external factors, such as supply shortages, natural disasters, or government-mandated business closures.

Shutdowns

A shutdown differs from a stand down. It refers to a temporary business closure during planned periods, such as Christmas or New Year. Employers may direct employees to take annual leave during a shutdown if their award or registered agreement permits it.

Workplace Impact of Natural Disasters

Severe weather events like cyclones or floods can result in temporary business closures. Employers may stand down employees if they cannot be usefully employed due to equipment failures or work stoppages caused by extreme conditions.

Inclement Weather and Employee Safety

Severe weather conditions—such as storms, heavy rain, extreme temperatures, hail, or strong winds—can make workplaces unsafe. Employers may instruct employees to stop work or not attend. Specific provisions regarding inclement weather may be outlined in awards, enterprise agreements, or other registered agreements. Employers should consult local authorities for guidance on safety regulations.

Alternatives to Stand-Downs

Before standing down employees, employers should consider:

  • Offering accrued paid leave
  • Directing employees to take annual leave (if permitted under their award or agreement)
  • Voluntary work-sharing arrangements
  • Flexible working arrangements

All measures should align with the Fair Work Act and any applicable employment agreements.

Employee Leave Options

Employees may agree with their employer to use paid leave options during a stand-down period, such as:

  • Annual leave
  • Long service leave
  • Other paid leave entitlements under awards, enterprise agreements, or contracts

However, employees stood down without pay under the Fair Work Act cannot use paid sick leave, carer’s leave, or compassionate leave. Employees in this situation are entitled to receive payment for any public holidays that fall within the stand-down period, provided they would have otherwise worked on that day.

Leave Accruals

Time spent on stand down counts towards an employee’s continuous service. This means it is included when calculating entitlements under the National Employment Standards, such as notice periods, redundancy pay, and leave accruals.

Casual Employees

Casual employees cannot be stood down due to business downturns but may be sent home after completing their minimum engagement period.

Working from Home

If feasible, working from home may serve as an alternative arrangement during business disruptions. Suitability depends on the nature of the work and business operations.

Changes to Duties, Hours, or Rosters

Employers and employees may negotiate temporary changes in duties to maintain productivity. Employees should check their award, agreement, employment contract, and workplace policies to understand their rights regarding such changes.

Dispute Resolution

If disputes arise concerning stand downs, the Fair Work Commission can mediate and provide guidance. Employers and employees should consult relevant authorities for assistance.

Prioritizing Safety

The safety of employees and employers should always be the primary concern when making workplace decisions during natural disasters.

For specific advice regarding your situation, contact the Fair Work Commission.

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