The Covid-19 pandemic has plunged the nation into uncertainty on two fronts: health, and the economy.
Thousands of Australian workers had their hours reduced, been stood down, or had their employment terminated, leading to large queues outside Centrelink offices and the MyGov website crashing as demand surges.
As we grapple with the economic complications this pandemic has caused, it is important to understand your rights and entitlements as an employee. What is the difference between being stood down and being terminated? Where do you, as employees, stand? And what options are available to you?
What does it mean to be stood down?
According to Fair Work Australia, “an employer may stand down an employee during a period in which the employee cannot usefully be employed”.
This is usually considered to be a temporary measure and occurs when companies want their employees to return to work eventually.
With COVID-19 causing a significant reduction in the business operations, and also causing a mandatory shut-down of several workplaces entirely, there is the risk of employers rely on their statutory power to stand down their employees.
However, as an employee, you are entitled to know whether your employers actions are justified.
You can only legally be stood down by your employer if you “cannot be usefully employed”. All employees should be given the opportunity to perform any work that is available and which they are capable of performing before a decision is made to stand them down.
What does it mean to be terminated?
Termination of employment can occur when workers are dismissed (fired) by their employer as a result of a breach of contract, or where the company can longer afford to employ them.
Given the financial downturn of businesses during COVID-19, there is the likelihood that a vast majority of jobs will made redundant.
A redundancy occurs when an employer no longer requires an employee’s job to be done by anyone. For example, where a business closes down entirely, all jobs of that employer are redundant.
Where an employee’s job is made redundant, there are the following two options available to you: -
1. You could either be offered suitable redeployment, and if you accept this, you will continue to be employed, with your accrued entitlements occurring; or
2. Your employment may be terminated due to redundancy, in which case you may be entitled to redundancy pay, apart from notice and payment of all your other accrued entitlements.
What entitlements are there for workers who have lost work?
If you have lost your job, been stood down, or if your shifts are significantly reduced, you are eligible for Centrelink’s $550.00 per week coronavirus supplement.
People taking leave from work to care for someone with COVID-19 are also eligible for the government supplement.
If you are already receiving welfare payments this supplement will come through automatically. If you do not already receive welfare, you will need to register through the MyGov website.
If you think you have been unlawfully stood down, or you have an action of unfair dismissal against your employer, please do not hesitate to contact our friendly team on 02 8917 8700 for legal assistance.