Stand downs, shutdowns and unpaid leave are used for different reasons and affect certain entitlements under the Fair Work Act differently.
Stand down
A stand down is different to unpaid leave.
If you're looking for information on unpaid leave, please see our page on Unpaid leave.
Employers can tell employees not to work if their employees can’t usefully be employed for reasons outside the employer’s control.
Reasons outside the employer’s control include things like:
- equipment breakdown
- industrial action
- a complete stoppage of work because of a government shutdown, or
- severe and inclement weather.
This is called stand down.
A stand down is initiated by the employer and may affect multiple employees.
During a stand down, employees:
- don’t work
- don’t have to be paid
- stay employed.
Different or extra rules may apply to standing down employees under an enterprise agreement or employment contract.
More stand down information
Pay during inclement or severe weather and natural disasters has information about when an employee can be stood down during severe weather or natural disasters.
Stand downs has information about when an employee can be stood down and the interaction with paid leave.
Stand down, continuous service and accumulation of leave has information on how stand down affects employees’ entitlements.
Ending employment during a stand down has information on notice and pay in lieu of notice during a stand down.
Shutdown
A shutdown is when a business chooses to temporarily close down all or part of a business for a particular period, such as Christmas and New Year. A shutdown is also known as a close down.
During a shutdown, employees can be directed to take annual leave if:
- their award or agreement allows it, or
- they aren’t covered by an award or agreement.
More shutdown information
Direction to take annual leave during a shutdown has information about leave during a shut down.
Payment for hours not worked has information about payment during a shutdown.
Direction to take leave when an employer shuts part of a business has information about leave during a shutdown.
References
What to do next
- Find out about Employee entitlements
- Find out about Awards & agreements
- Complete a course in our Online learning centre
- Find out about Other workplace relations help