Many of us have been affected by bushfire, cyclone and flooding, or know someone who has been. Businesses can also be affected by natural disaster. Some businesses may need to temporarily close, affecting their capacity to pay for wages and other expenses. Their employees may also be facing unexpected costs from loss and damage.
What options do employers have?
Stand Down
The Fair Work Act 2009 allows employers to stand down employees when there is a stoppage of work for which the employer cannot reasonably be held responsible, such as a natural disaster.
Stand downs are unpaid though employers can allow employees to take accrued paid annual leave or long service leave, or choose to continue to pay their employees if they have capacity to.
A modern award, enterprise agreement, or employment contract may have its own stand down provisions that apply instead, and an employer should ensure it understands its rights and obligations.
For example, the Building and Construction Industry General On-Site Award 2010 has specific requirements that can apply where it is unreasonable or unsafe for an employee to continue working due to inclement weather conditions.
Communicating Effectively
The Fair Work Ombudsman recommends that if an employer stands down employees under the Fair Work Act, it is best practice to tell those employees in writing (where possible), including:
the start date of the stand down
whether the employees will or will not be paid
the effect on other employment entitlements.
Employers should also try to update employees about when they think the stand down will end.
Alternatives to stand down?
Employers can also consider other alternatives to stand down, such as allowing working from home where that is feasible.
Consider Leave Entitlements
Employers should also be aware that other leave entitlements may sometimes apply such as community service leave and personal/carer’s leave, depending upon the individual circumstances.
At WorkLegal our experienced team can answer your questions and put you on the right track. A range of fixed-price Initial Consultations will suit most people’s needs in quickly learning what their options are.