With severe weather warnings issued today and expected to continue for the next few days in many areas across Australia, it’s important that we ensure the safety of our team and customers.
Some workplaces have closed or allowed their teams to go home early. Many businesses are also without power.
What does this mean for your business?
When can you send your team home?
Do you still need to pay them?
Is there useful work to be done?
Are you shutting down because of reasons outside of your control?
It depends on the circumstances.
In what circumstances can an Employer close and not pay Employees?
The Fair Work Act 2009 (Cth) allows an employer to shutdown without having to pay their employees in very limited circumstances.
An employer is permitted to 'stand down' employees by sending them home if there is no useful work for them to do because of:
natural disaster (including floods, bushfires and cyclones); or
break down of equipment; or
industrial action.
Employees can only be stood down for the above reasons if these reasons were out of the employer's control.
It is important to note that employees cannot just be stood down because there is not enough work.
Is there useful work to be done?
'Useful work' could include assisting clean up the business after a natural disaster, and this work would be paid for.
Do employees need to be paid during a 'stand down'?
If the employees are genuinely stood down as permitted under the Fair Work Act 2009 (Cth) then the employee will not be paid during this limited period.
What about Inclement or Severe Weather?
Inclement or severe weather is not the same as a natural disaster.
Inclement weather is when it is unsafe or unreasonable for an employee to work because of severe weather conditions.
Where your employees are covered by a Modern Award, enterprise agreement or other registered industrial instrument they can outline:
what inclement weather means; and
what employers and employees need to do when there is inclement weather.
Generally, where an employer stand downs an employee because of a natural disaster the employer does not need to make inclement weather payments.
Further information and support
Not sure whether your Modern Award, enterprise agreement or industrial instrument includes provisions for inclement weather? Contact us now by clicking here and be safe!