Skip to main content
The JobKeeper scheme ended on 28 March 2021.

The information in this article about the JobKeeper scheme and JobKeeper enabling stand down directions stopped applying from 29 March 2021.

Find out more at Former JobKeeper scheme.

On 27 November 2020 the Full Federal Court of Australia confirmed that an employee who has been stood down under the Fair Work Act can’t take paid sick and carer’s leave or compassionate leave. On 21 May 2021, the High Court of Australia refused an application for special leave to appeal this decision. The information in this article remains accurate. You can read the Full Federal Court’s decision at CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205.

This article provides guidance on how the National Employment Standards apply when employees were stood down during the coronavirus outbreak.

Employees could be stood down during the coronavirus outbreak:

  • under section 524 of the Fair Work Act, or
  • under sections 789GDC [repealed] (qualifying employers) and 789GJA [repealed] (legacy employers) of the Fair Work Act (JobKeeper enabling stand down direction).

If an enterprise agreement or contract of employment applies to the employees and allows the employer to stand down employees because of a stoppage of work, the employer has to use the provisions in the agreement or contract. They can’t use section 524. However, a qualifying employer or legacy employer may have been able to give a JobKeeper enabling stand down direction under the temporary JobKeeper changes to the Fair Work Act, if they met certain criteria.

Stand down under section 524 of the Fair Work Act

Whether the option of standing down employees under section 524 was available in circumstances relating to coronavirus depends on the facts in each case. The employer must be a national system employer and must be able to demonstrate that:

  • there is a stoppage of work (occurring before the stand down)
  • the employee to be stood down cannot be usefully employed (which is not limited to the work an employee usually performs) because of the stoppage
  • the cause of the stoppage must be one that the employer cannot reasonably be held responsible for.

Employers generally couldn’t stand down employees under the Fair Work Act stand down provisions simply because of a deterioration of business conditions or because an employee had coronavirus.

A stand down under section 524 can be without pay and employees who are stood down remain employed during the period of the stand down.

Some examples of when employers may have been able to stand down employees include:

  • if an enforceable government direction required the business to close (which means the employee couldn't be usefully employed, even from another location)
  • if a large proportion of the workforce was required to self-quarantine and the remaining employees/workforce couldn’t be usefully employed
  • if there was a stoppage of work due to lack of supply for which the employer couldn’t be held responsible.

Enterprise agreements and employment contracts can have different or extra rules about when an employer can stand down an employee without pay, for example, a requirement to notify or consult with employees. 

If an employer unlawfully stands down employees without pay, their employees may be able to recover unpaid wages.

JobKeeper enabling stand down directions

Before 29 March 2021, employers may have been able to give JobKeeper enabling stand down directions if they were a:

qualifying employer - an employer who qualified for the JobKeeper scheme and was receiving JobKeeper payments for their employees (and continued to receive them after 27 September 2020)

legacy employer - an employer who previously qualified for the JobKeeper scheme but no longer qualified (or chose not to participate) from 28 September 2020.

All JobKeeper enabling stand down directions stopped applying on 29 March 2021.

Qualifying employers

A ‘JobKeeper enabling stand down direction’ enabled a qualifying employer to direct an eligible employee to temporarily:

  • not work on 1 or more days that they usually work
  • work for a shorter period than the employee usually works on a particular day or days
  • work less hours overall than the employee usually works
  • not work any hours at all.

To give a JobKeeper enabling stand down direction, a qualifying employer needed to:

  • qualify for and enrol in the JobKeeper scheme
  • be entitled to JobKeeper payments for the employee to whom the direction or agreement applied
  • be a national system employer in the Fair Work system.

A qualifying employer could give an eligible employee a ‘JobKeeper enabling stand down direction’ if:

  • the employee couldn’t be usefully employed for their normal days or hours because of business changes attributable to:
  • the coronavirus pandemic, or
  • government initiatives to slow coronavirus transmission (such as an enforceable government direction)
  • the employer met the requirements for the direction.

Go to the JobKeeper enabling stand down directions page for more information regarding the requirements for giving a direction.

A qualifying employer could give an eligible employee a JobKeeper enabling stand down direction from 9 April 2020, when Part 6-4C of the Fair Work Act (Fair Work Act JobKeeper provisions) started, until 28 March 2021 when the provisions stopped applying. They remained in effect until revoked or replaced by the employer, or until the Fair Work Act JobKeeper provisions ceased completely on 28 March 2021.

Other types of ‘JobKeeper enabling directions’ could:

  • change an employee’s usual duties
  • change an employee’s location of work.

The Fair Work Act JobKeeper provisions also enabled employers and employees within the JobKeeper scheme to make agreements to change their days and times of work in certain circumstances.

Go to the Former JobKeeper scheme overview page for information.

Legacy employers

Legacy employers were employers that:

  • previously participated in the JobKeeper scheme, but no longer qualified, or chose not to participate, from 28 September 2020
  • could demonstrate at least a 10% decline in turnover for a relevant quarter by having either a:
    • 10% decline in turnover certificate from an eligible financial service provider, or
    • if they’re a small business, a statutory declaration.

Any JobKeeper enabling stand down directions that legacy employers previously had in place ended on 27 September 2020. If legacy employers wanted to use JobKeeper enabling stand down directions after this date, they needed to reissue or make new directions with their employees. The new directions had to start on or after 28 September 2020.

To issue new directions that started on or after 28 September 2020, legacy employers needed to qualify as a ‘legacy employer’ for each relevant quarter. This included:

  • satisfying the 10% decline in turnover test
  • having a certificate or statutory declaration.

See the Legacy employers under the former JobKeeper scheme page for details.

Legacy employers could stand down employees who they previously received JobKeeper payments for in certain circumstances.

A legacy employer could use a JobKeeper enabling stand down direction to direct an employee, that they previously received JobKeeper payments for, to temporarily:

  • not work on 1 or more days that they usually work
  • work for a shorter period than the employee usually works on a particular day or days
  • work less hours overall than the employee usually works.

This means a legacy employer could temporarily reduce an employee’s days or hours of work. However, JobKeeper enabling stand down directions made on or after 28 September 2020 couldn’t:

  • result in an employee working less than 2 hours on a workday
  • reduce a full-time or part-time employee’s hours of work to less than 60% of their ordinary hours as at 1 March 2020 (their ordinary hours before the impact of coronavirus).

Legacy employers needed to follow certain rules where it wasn’t possible or appropriate to determine an employee’s ordinary hours of work as at 1 March 2020.

Other types of ‘JobKeeper enabling directions’ could:

  • change an employee’s usual duties
  • change an employee’s location of work.

Go to the JobKeeper enabling directions and agreements for legacy employers page for more information.

JobKeeper enabling directions, including JobKeeper enabling stand down directions and agreements made under the Fair Work Act JobKeeper provisions, all had effect, despite the provisions of the National Employment Standards (NES).

The following table shows how the NES interact with stand downs under section 524 and JobKeeper enabling stand down directions. The table also includes links to related content for further information.

The table does not deal with:

  • above-NES entitlements
  • rules that may apply if the employee has been stood down under an enterprise agreement or employment contract
  • rules that may apply under an award or a workplace policy.
NES Entitlement

Stand down under section 524 of the Fair Work Act or under the JobKeeper scheme, which ended on 28 March 2021.

Requests for flexible working arrangements

General current information on requests for flexible working arrangements under the NES is available on the Flexible working arrangements page.

Issues concerning interaction as between a request for a flexible working arrangement under section 65 of the FW Act and stand down must be assessed on a case by case basis. The Fair Work Act JobKeeper provisions didn’t operate subject to the NES (section 789GZ [repealed]).

Note: The Fair Work Commission made changes to a number of awards to increase award flexibility temporarily during the pandemic. The Fair Work Commission can also approve variations of enterprise agreements. To see if an award is affected check the version of the award that was in place at the applicable time.

Note: Under the JobKeeper scheme, qualifying employers that were entitled to receive JobKeeper payments for an eligible employee, could in certain circumstances:

  • reduce the employee’s hours or days of work (including to nil hours) – a ‘JobKeeper enabling stand down direction’
  • change the employee’s usual duties
  • change the employee’s location of work
  • make an agreement with the employee to change (but not reduce) their days and times of work and take annual leave, including at half pay.

Go to the Former JobKeeper scheme overview page for information.

Public holidays

Employees are entitled to be paid for public holidays that would otherwise fall during a stand down period (whether a stand down under section 524 or a JobKeeper enabling stand down direction).

To be entitled to be paid for the public holiday an employee needs to have ordinary hours of work falling on that day.

If an employee is authorised to be absent from work, such as on a public holiday, they are not considered to be stood down (or a JobKeeper enabling stand down direction does not apply) for the time they are away.

A qualifying employer who received JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:
an amount equal to the applicable JobKeeper payment, or
their usual pay for work performed (including any paid leave or public holiday pay).

For more information go to:

Note: If an employee’s ordinary hours were validly reduced under an Award COVID-19 Schedule, rather than the Fair Work Act JobKeeper provisions, the employee may only be entitled to payment for absence on a public holiday if their reduced ordinary hours continue to fall on that day.

Annual leave

Annual leave accrues on the employee’s usual hours during a stand down (whether a stand down is under section 524 or was a JobKeeper enabling stand down direction).

Employers can:

  • seek an employee’s agreement to take paid annual leave
  • in limited circumstances, direct an employee to take paid annual leave.

An employer must not unreasonably refuse to agree to an employee’s request to take paid annual leave.

If an employee takes annual leave that is authorised by their employer, they are not considered to be stood down (or a JobKeeper enabling stand down direction did not apply) for the time they are on leave.

Whether an employer can direct an employee to take annual leave (or agree to take annual leave at half pay) depends on what an applicable award or enterprise agreement says. The Fair Work Commission temporarily varied some awards to provide greater flexibility in relation to taking annual leave. Most of these provisions have now expired. Check your award and find further information at Changes to workplace laws during coronavirus.

Before 28 September 2020, irrespective of any inconsistent terms in an applicable award or enterprise agreement, under the Fair Work Act JobKeeper provisions, a qualifying employer entitled to JobKeeper payments for an eligible employee could:

  • request the eligible employee to take paid annual leave (as long as the employee kept a balance of at least 2 weeks) - the employee had to consider such a request and could not unreasonably refuse it
  • agree in writing with the eligible employee for them to take annual leave at half pay for twice the length of time.

Employers couldn’t ask their employees to use up their annual leave or long service leave as a condition of them receiving the benefit of the JobKeeper payment.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

For more information go to:

Paid sick & carer's leave

Paid sick and carer’s leave accrues during a stand down (whether a stand down is under section 524 or a JobKeeper enabling stand down direction).

Full-time and part-time employees could take paid sick and carer’s leave (subject to notice and evidence requirements) for hours they were expected to work while under a JobKeeper enabling stand down direction.

As the law currently stands, an employee who has been stood down or given a JobKeeper enabling stand down direction to work less or no hours, is not entitled to use paid sick and carer’s leave for the days or hours that they’ve been directed not to work. This is on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

For more information go to the Leave and the former JobKeeper scheme page.

Unpaid carer's leave

Casual employees are entitled to 2 days of unpaid carer’s leave per occasion. Full-time and part-time employees can take unpaid carer’s leave if they have no paid sick or carer’s leave left.

As the law currently stands, it is unclear whether an employee who has been stood down or given a JobKeeper enabling stand down direction, is entitled to take unpaid carer’s leave during the days or hours they’ve been stood down. This is on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205. Note that taking unpaid carer’s leave during a stand down would, in any case, not usually benefit the employee.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

For more information go to:

Compassionate leave

All employees (including casual employees) are entitled to 2 days of compassionate leave (also known as bereavement leave) per occasion.

Compassionate leave can be taken when a member of an employee's immediate family or household dies, contracts or develops a life-threatening illness or injury.

Full-time and part-time employees receive paid compassionate leave and casual employees receive unpaid compassionate leave.

As the law currently stands, an employee who has been stood down or given a JobKeeper enabling stand down direction to work less or no hours is not entitled to use paid compassionate leave for the days or hours that they’ve been directed not to work. This is on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205.

Following the decision in CEPU & Anor v Qantas Airways Ltd, it is unclear whether an employee who has been stood down or given a JobKeeper enabling stand down direction, is entitled to take unpaid compassionate leave during the days or hours they’ve been stood down.

Note that taking unpaid compassionate leave during a stand down would, in any case, not usually benefit the employee.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay and noting that the employee is not entitled to take paid compassionate leave for the days or hours they’ve been stood down).

For more information go to:

Unpaid family and domestic violence leave

Under the Fair Work Act, employees dealing with the impact of family and domestic violence could:

  • take unpaid family and domestic violence leave
  • request flexible working arrangements
  • take paid or unpaid sick or carer’s leave, in certain circumstances.

As the law currently stands, it is unclear whether an employee who had been stood down or given a JobKeeper enabling stand down direction, was entitled to take unpaid family and domestic violence leave during the days or hours they’ve been stood down. This is on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205.

Note that taking unpaid family and domestic violence leave during a stand down would, in any case, not usually benefit the employee.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

For more information go to:

Parental leave and related entitlements

As the law currently stands, it is unclear whether an employee who has been stood down or given a JobKeeper enabling stand down direction, is entitled to take unpaid parental leave (or other forms of related unpaid leave entitlements under Division 5 of Part 2-2 of the Fair Work Act, namely, unpaid special parental leave, unpaid no safe job leave and unpaid pre-adoption leave) during the days or hours they’ve been stood down. This is on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205.

Following the decision in CEPU & Anor v Qantas Airways Ltd, employees who are stood down or were given a JobKeeper enabling stand down direction are probably not entitled to use paid no safe job leave (section 81A of the Fair Work Act) during the days or hours they’ve been stood down.

A qualifying employer who was receiving JobKeeper payments for an eligible employee, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

An employer wasn’t entitled to JobKeeper payments and a JobKeeper enabling stand down direction wasn’t authorised during relevant fortnights when the employee was receiving ‘parental leave pay’ and ‘dad and partner pay’ under the Paid Parental Leave Act 2010.

For more information go to:

Notice of termination

Note: This is the FWO’s preferred view of how section 117 of the Fair Work Act applies when an employee has been stood down or given a JobKeeper enabling stand down direction. There is unlikely to be any certainty about this view unless the matter is settled by a superior court. Customers may wish to seek independent advice. An applicable industrial instrument or employment contract may have different terms about notice or stand down that could affect this information.

An employer can dismiss an employee during a stand down, whether a stand down under section 524 or while a JobKeeper enabling stand down direction applied. The usual rules about ending employment apply, for example, rules about unfair dismissal, general protections, and redundancy.

If an employer dismisses an employee they need to give notice in writing (some exceptions apply).

An employer can choose to:

  • give the minimum period of notice
  • pay out the notice period (known as payment in lieu of notice or PILN), or
  • give a combination of the two.

Notice

The notice period can run concurrently with a period of stand down without pay or while a JobKeeper enabling stand down direction applied.

An employee who has been stood down without pay is not entitled to payment during the notice period (subject to any entitlement to annual leave, long service leave or public holiday pay arising).

A qualifying employer who was receiving JobKeeper payments for an eligible employee during the notice period, needed to pay the employee the higher of the following amounts, each fortnight:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual pay for work performed (including any paid leave or public holiday pay).

Employees may become entitled to payments for annual leave, long service leave or public holidays falling during the notice period. As the law currently stands (on the basis of the Full Federal Court decision in CEPU & Anor v Qantas Airways Ltd [2020] FCAFC 205), employees who are stood down are not entitled to use paid sick and carer’s leave, or paid compassionate leave, during the stand down (see above in relation to the effect of CEPU & Anor v Qantas Airways Ltd on other types of leave).

PILN

If PILN is provided, the employment ends and the employee does not remain employed through the minimum period of notice. PILN is based on the employee’s full rate of pay and usual hours as if they hadn’t been stood down or given a JobKeeper enabling stand down direction. For example, an employee who is entitled to 3 weeks' notice will get 3 weeks' pay at their full rate for their usual hours.

JobKeeper payments were not included when calculating PILN. However, an eligible employee of a qualifying employer in the JobKeeper scheme that received PILN was entitled to receive at least an amount equal to the applicable JobKeeper payment for any JobKeeper fortnight during which they remained employed for any part of the fortnight.

For more information go to:

Redundancy pay

Some employers may need to make employees’ positions redundant in response to a business downturn. The usual rules about redundancy (such as consultation) still apply.

If an employee’s job is made redundant, their employer may have to give them redundancy pay, and any other entitlements owed to them, such as PILN or payment for untaken annual leave.

Where an employee has been stood down without pay or was given a JobKeeper stand down direction, redundancy pay under the NES is calculated based on the employee’s base rate of pay for their ordinary hours of work (as if they had not been stood down or given the direction).

For more information go to:

Long service leave

Most employees' entitlements to long service leave come from long service leave laws in each state or territory. Other employees are entitled to long service leave under the NES (section 113).

An employee is taken not to be stood down (or a JobKeeper enabling stand down direction did not apply) during any period of long service leave.

If a qualifying employer was receiving JobKeeper payments on behalf of an eligible employee who took long service leave, they needed to pay the employee the greater of:

  • an amount equal to the applicable JobKeeper payment, or
  • their usual leave payment.

For more information and a list of the long service leave agencies in the states and territories go to Long service leave.

Note: On 25 March 2020, the New South Wales Government amended the state’s Long Service Leave Act to allow for greater flexibility during the outbreak of coronavirus. For more information, visit the NSW State Government website.

View references

What to do next

Give us feedback on this article

Use our Feedback form to give us feedback about the information in this article.

If you have a question about pay or entitlements or need our help with a workplace issue, you can submit an online enquiry

Page reference No: K600634