Stand Down Notice Format In Australia: What Employers Need To Know

When business slows or operations are disrupted, you may need to temporarily stand employees down. Getting the stand down notice right matters - both for legal compliance and to maintain trust with your team.

In this guide, we break down when a stand down is lawful under Australian employment law, what to include in a stand down notice, a practical step-by-step process you can follow, and how pay and entitlements should be handled. We’ve also included a sample structure you can adapt to your business.

If you’re feeling unsure, you’re not alone - this area can be technical. With a clear plan and the right documents, you can do it properly and keep your workplace on track.

What Is A Stand Down In Australia?

A stand down is a temporary pause in an employee’s work and pay when you can’t provide useful work due to circumstances outside your reasonable control. It’s not a termination and it’s not redundancy - the employment relationship continues, and you recall the employee when work becomes available again.

Stand down powers in the Fair Work Act are a safety valve for unusual situations that interrupt normal operations. They are not a tool for performance management or disciplinary issues. If you’re pausing work while investigating conduct or safety concerns, that’s usually a suspension on pay (not a stand down). For that situation, consider a fair process that may include a paid suspension and, where appropriate, a Show Cause Letter. You can also read about standing down an employee pending investigation to ensure your approach aligns with procedural fairness.

When Is A Stand Down Lawful?

Under the Fair Work framework, you can generally stand an employee down without pay if they can’t be usefully employed because of one of the following:

• A stoppage of work for which you can’t reasonably be held responsible (for example, government-mandated shutdowns, a natural disaster, or a critical supplier outage that halts operations).
• Industrial action that is not organised or engaged in by the employer.
• A breakdown of machinery or equipment if you can’t reasonably be held responsible and it causes a stoppage of work.

Sometimes a modern award, enterprise agreement or an Employment Contract includes additional stand down provisions. If so, those terms apply and may set out extra steps, notice requirements or consultation processes you must follow. Where an instrument is silent, rely on the Fair Work Act and keep clear records of your decision-making.

It’s also important to consider reasonable alternatives before standing employees down. If you can redeploy staff to useful work or agree to a temporary reduction in hours, that may be a better option. For lawful pathways to adjust hours by agreement, see our guide to reducing employee working hours.

What Should A Stand Down Notice Include?

There’s no set statutory form for a stand down notice, but best practice is to provide a clear written notice that covers all key details. This helps you comply with any consultation obligations, reduces disputes, and ensures consistent communication across your team.

Your stand down notice should cover:

• Employee details: Full name, position title, employment type and primary work location.
• Legal basis: A plain-English explanation of why the stand down is lawful (e.g. a stoppage of work due to reasons beyond your control under the Fair Work Act, or under a clause in an enterprise agreement or award).
• Effective dates: When the stand down starts, whether it’s for a defined period or “until further notice,” and your anticipated review date.
• Scope: Whether the stand down is full or partial (e.g. certain days or shifts only) and how rostering will work during the period.
• Pay and entitlements: State that the period is unpaid under the Act. Clarify how annual leave and long service leave requests will be handled, and note that paid personal/carer’s leave is generally not available during a stand down (more below).
• Contact and availability: Whether the employee must remain contactable (and during what hours), and how you’ll notify them when work resumes.
• Support: Any employee assistance options, and who to contact with questions (HR or a manager, with email/phone).
• Consultation notes: If an award or enterprise agreement requires consultation, reference the discussions already held or scheduled.

It’s also helpful to reference relevant internal policies. A tailored Staff Handbook or Workplace Policy set can outline your process for shutdowns or emergencies, which you can cross‑refer to in your notice.

Stand Down Notice: Sample Structure You Can Adapt

Subject: Stand Down Notice –

Dear ,

We’re writing to notify you of a stand down under . Due to , we cannot provide useful work in your role at this time.

The stand down will commence on and is expected to last until . We will review this on and update you promptly.

During the stand down, you are not required to work and this period will be unpaid. Your service continues for the purposes of accruing entitlements in accordance with the law and any applicable industrial instrument. You may request to use accrued annual leave (or long service leave if eligible) during this period. Please note that paid personal/carer’s leave generally does not apply during a stand down.

Please ensure your contact details are current and you remain reasonably contactable. If you have any questions, contact at .

We appreciate your understanding during this period and remain committed to supporting you and the team.

Sincerely,

If you’re implementing a partial stand down (reduced shifts), make that clear and explain how rosters will be communicated. Where possible, attach FAQs to address common questions around pay, leave and benefits.

Step-By-Step: How To Issue A Stand Down Notice

Follow these steps to reduce risk and ensure your process is fair and compliant.

1) Confirm Your Legal Basis

Document the circumstances causing the stoppage (or cite the relevant clause in your enterprise agreement or award). Keep evidence - for example, government directions, supplier shutdown correspondence, or engineering reports on equipment failure.

If the issue is conduct-related and needs investigation, consider a paid suspension rather than a stand down. A fair process may involve a Show Cause Letter and clear communication about expectations.

2) Check Awards, Agreements And Contracts

Identify whether a modern award or enterprise agreement applies, and whether your Employment Contract includes stand down terms. Some instruments require consultation, minimum notice, or specific content in your communications. If in doubt, review your award compliance position before acting.

3) Consider Reasonable Alternatives

Before standing employees down, consider redeployment to useful work, adjusted rosters, or a temporary reduction in hours by agreement. If those options are viable, it’s often safer to explore them first. When hours need to change, rely on lawful options outlined in our guide to reducing employee working hours.

4) Consult And Communicate Early

Where an award or agreement requires it, consult with employees and keep notes of meetings. Communicate early and empathetically - explain what’s happening, why, how long it may last, and when you’ll review the decision.

Avoid relying on casual verbal updates. Provide a formal written notice to each affected employee and set up a central point of contact for questions (HR inbox or manager).

5) Issue The Written Notice

Send tailored notices to each employee (email and, if appropriate, post to the last known address). Include the elements set out above and keep a copy for your records. If your business has templates in your Staff Handbook, use them to ensure consistency.

6) Manage Entitlements And Payroll

Confirm how accruals will operate, what paid leave options are available on request, and how you’ll manage benefits. Be careful around deductions and any offsets. If cash flow is tight, make sure any steps you take are lawful - review the rules on withholding pay so you don’t breach the Fair Work Act or an award.

7) Review Regularly And Keep Records

Set review dates, track changes, and end the stand down promptly when useful work becomes available. Maintain records of your decision-making, notices sent, consultation steps and review outcomes in case of a later dispute.

Pay, Leave And Entitlements During A Stand Down

Getting entitlements right builds trust and reduces risk. Here’s how the common areas generally work.

• Pay: Stand downs under the Fair Work Act are generally unpaid. If an award or agreement says otherwise, follow those terms.
• Service and accruals: Service usually continues during a lawful stand down, so entitlements like annual leave and personal/carer’s leave typically keep accruing (subject to any specific instrument variations).
• Annual leave: Employees can request to use accrued annual leave during a stand down. Whether you approve will depend on business needs and any applicable instrument. Some employers also consider long service leave requests where eligible.
• Personal/carer’s leave: Paid personal/carer’s leave is generally not available during a stand down because there’s no work the employee is being excused from. If an employee was already on approved paid leave when the stand down commenced, that paid leave normally continues until it ends.
• Public holidays: If a public holiday falls on a day the employee would normally work, they’re generally entitled to be paid for that day even during a stand down.
• Recall and communication: State clearly how you’ll call employees back to work (notice period, contact method) and share updated rosters promptly.

In some scenarios, you might weigh a stand down against other options. For example, in high‑risk transitions it may be more appropriate to place a senior employee on garden leave (paid) for a short period, or to agree on temporary variations to duties and hours during a downturn. Choosing the right approach will depend on your operational needs and the legal framework that applies to your workplace.

Common Mistakes (And How To Avoid Them)

Stand downs can be contested if the legal basis or process isn’t clear. These are frequent pitfalls - and how to sidestep them.

• Using stand down for performance or conduct issues: That’s usually a suspension situation, not a stand down. For allegations, consider a paid suspension and a fair process that may include a Show Cause Letter.
• Poor documentation: Verbal updates without a formal notice increase risk. Use a written notice and keep records of your decision-making and consultation.
• Not consulting when required: Many awards and enterprise agreements require consultation about major workplace changes. Check the instrument and your award compliance obligations before acting.
• Inconsistent selection criteria: Apply clear, role‑based criteria (e.g. site closures or specific role requirements). Avoid subjective or inconsistent decisions across similar roles or locations.
• Getting entitlements wrong: Confirm accruals, public holiday pay and leave options. If unsure, seek advice before you process changes through payroll.
• Confusing stand down with redundancy: Redundancy ends employment and attracts termination entitlements; stand down is temporary. If structural change is on the table, get advice before you move towards redundancies and ensure your Employment Contract terms and policies support the process.
• Ad hoc processes: Build your approach into internal documentation. A clear Staff Handbook and well‑drafted policies make it easier to act quickly and lawfully when disruptions occur.

Key Takeaways

• A stand down is a temporary pause in work and pay when useful work can’t be provided due to reasons outside your reasonable control - it’s not termination or redundancy.
• Lawful grounds typically include a stoppage of work (not the employer’s fault), certain industrial action (not organised or engaged in by the employer), or a machinery breakdown that causes a stoppage.
• Your stand down notice should clearly set out the legal basis, dates, scope (full or partial), how pay and entitlements will be handled, and how you’ll communicate reviews and recall to work.
• Stand downs are generally unpaid; service usually continues and leave entitlements typically accrue. Employees can request annual leave; paid personal/carer’s leave generally doesn’t apply during a stand down. Public holidays are generally paid if the day would have been worked.
• Follow a fair, documented process: consider alternatives, consult where required, issue written notices, manage payroll carefully (including any withholding pay issues), and review regularly.
• Strong foundations - a compliant Employment Contract, updated policies and a practical Staff Handbook - make it easier to manage disruptions lawfully and fairly.

If you’d like a consultation on drafting or reviewing your stand down notice and internal documents, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.