Section 524 of the Fair Work Act 2009 (FW Act) gives an employer the right to stand down employees without pay in certain circumstances.
There are a number of requirements that must be met before an employer can stand down its employees. These requirements are complex to apply in practice and there is a considerable amount of case law about the meaning of the expressions used in section 524.
If a stand down is held by a Court or the FWC to not meet the requirements of the FW Act, the employer will have an obligation to pay the employees who were invalidly stood down. Therefore, it is essential for employers to carefully consider whether the various requirements are met before proceeding to stand down any employees.
Employers are urged to contact Ai Group Workplace Lawyers for advice before standing down employees.