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COVID-19 continues to have a considerable effect on businesses, even as we progress through 2025. While many restrictions have eased, the lasting legacy of the pandemic still influences operational and staffing decisions.
To cope with these challenges, many employers have faced the difficult choice of standing down their employees, particularly during periods of unexpected government-imposed restrictions or reduced business activity.
But what does “stand down” mean in today’s changing landscape? When can you legally stand down your employees? And what are the implications you should consider in 2025?
Australia’s Fair Work Commission continues to provide guidelines on determining whether your circumstances justify standing down an employee, though recent updates reflect evolving approaches in 2025.
In this article, we’ll walk you through these updated guidelines and outline when you can stand down your employees due to reduced operational capacity or government-imposed restrictions.
What Does It Mean To Stand Down Employees?
Standing down an employee is different from making them redundant or terminating their employment.
You can stand down an employee when there is no “useful” work available for them to complete at that time.
If you decide to stand down an employee, they are temporarily inactive from work – yet they remain formally employed by your organisation.
However, being stood down means your employee will not be able to work and may not receive pay until there is meaningful work available again. It’s important to note that “meaningful work” is subject to interpretation; based on recent case law in 2025, if any work performed by your employee generates a benefit for your business, it may be considered sufficient.
While the Fair Work Commission has not provided a precise definition of “useful” or “meaningful” work, courts have consistently held that if an employer derives any tangible benefit from the work performed by an employee, that work may qualify.
When Can I Stand Down Employees?
A stand down can occur when your business is unable to provide useful work to your employees, whether due to operational disruptions or government-imposed restrictions.
There are three main scenarios in which an employee can be stood down:
- Equipment breakdown for which the employer is not responsible
- Industrial action not organised by the employer
- Stoppage of work for which the employer can’t be held responsible, such as government restrictions or other emergencies
The impact of COVID-19, for example, may still be considered a stoppage of work in certain regions. Although many restrictions have relaxed, sudden government measures in response to a local health emergency can trigger similar conditions.
Given the complexities and evolving legal interpretations in 2025, it’s advisable to consult with a lawyer – perhaps by reviewing our employment contract services – if you’re unsure whether your situation qualifies.
What Is A Stoppage Of Work That I Can’t Be Held Responsible For?
Depending on how current conditions affect your business operations, the disruption may be considered a stoppage for which you are not at fault.
If government restrictions or directives force you to cease or limit your business activities, this may allow you to stand down employees. For instance, a temporary lockdown or enforced social distancing measures can qualify if they prevent the normal flow of work.
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Example Of A Stand Down Kat owns a small pub and, in 2025, regional lockdown measures and social distancing protocols have drastically reduced customer numbers. Kat employed three casual staff members as bartenders, but with fewer patrons and government-imposed restrictions in place, there is insufficient work available. What can Kat do? In this scenario, the stoppage of work is clearly caused by external restrictions beyond Kat’s control. With no meaningful work available, she is justified in standing down her casual employees under current Fair Work guidelines. |
What Rights Do My Employees Have?
If you decide to stand down your employees, they still remain employees of your company, retaining most of their employment entitlements.
This means that, aside from their right to work or receive pay, all usual contractual benefits continue. Recent updates ensure that during stand down periods, employees continue to accrue leave entitlements as per their contracts and applicable state laws – for example, in NSW, the period of stand down does not break the continuity of service for accruing long service and annual leave.
If your employees are stood down on an unpaid basis, they may still choose to utilise any accrued leave to support themselves during this period.
For further guidance, consider reviewing our insights on employment contracts to ensure you fully understand your obligations.
I Don’t Want To Stand Down My Employees. What Are My Options?
The process of standing down employees can be challenging and emotionally taxing. It’s important to explore alternative arrangements that may help keep your business running while also safeguarding your valued staff.
Some of these options include:
- Mutually agreeing to reduced hours until the volume of work increases, allowing for flexibility in response to market conditions – a strategy also discussed in our reducing staff hours guide.
- Mutually agreeing to use accrued leave entitlements, so that employees can access their annual leave as an alternative to being stood down without pay.
- Redundancies, which may be a necessary step if it appears there will be a long-term reduction in work following the lingering effects of the pandemic or other disruptions.
- Exploring flexible work arrangements, such as part-time or remote work options, which have become increasingly viable in 2025 and can help balance operational needs with employee welfare.
If you decide to pursue any of the above options, it’s crucial to document these agreements in writing. This not only ensures clarity but also provides legal protection for both you and your employees.
What To Take Away…
Standing down staff or making them redundant is never an easy decision. It’s vital to have all the relevant information before taking any action regarding your employees.
Remember, staying updated with the latest Fair Work guidelines and legal requirements is essential in 2025. Our experienced team is here to help – whether it’s reviewing your employment contracts or advising on staff hour adjustments. For more advice, you might find our guide on choosing a small business lawyer extremely useful.
Additionally, always ensure that any arrangements or agreements relating to stand downs are clearly communicated and formally documented. This transparency not only aids in compliance but also fosters trust and protects your business in the long term.
If you have any questions about employee stand down or are uncertain about which option is best for your business, our expert team can be contacted on 1800 730 or team@sprintlaw.com.au. We’re here to help!
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