Shutdown vs stand down

An employee can be directed to take annual leave during a shutdown - but only if their award or registered agreement allows it. A shutdown is when a business temporarily closes, such as at Christmas and New Years.

A shutdown isn't the same as a stand down.

A stand down is a temporary closure of the business when an employer tells employees not to work because they can’t be usefully employed, for reasons outside the employer’s control.

Reasons for a stand down can include:

• equipment breakdown, if the employer isn’t responsible for it

• industrial action, when it’s not organised by the employer

• a stoppage of work for a reason that the employer can’t be held responsible for, such as a natural disaster.

Make sure you understand your obligations and rights by reviewing the relevant awards.

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Disclaimer

This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.