Stood Down Employees

There are many businesses who have stood down employees recently as a result of the current circumstances.

In theory this may have been the right thing for the business owner to do.

But I am hearing more and more concerns from employment lawyers that the standing down of some employees does not comply with the Fair Work Act.

For example, as I understand it, if you stand down employees where you just face a reduction in sales, or it is unprofitable to continue to employ staff, this may be unlawful. For example, some, but not all of your customers stop purchasing from you.

If the standing down of your employees with no pay was unlawful, you as the business owner run the risk of a claim against your business for full pay by the staff affected, plus possible penalties.

If you have stood down employees, please make sure you have done this lawfully. Unfortunately, you may need to spend money with a recognised employment law specialist, but this could just save your business in the long run.

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