Managing your Employees during COVID-19 Pandemic
Properly managing your workforce during this difficult time will help ensure that you emerge from the coronavirus crisis with your business and workforce intact.
If you are a business owner or employee that requires assistance during this difficult time, contact us today on (07) 5526 0157.
The COVID-19 virus has caused upheaval across the globe and particularly for Employers. The challenge of managing a workforce in the midst of the crisis, has thrust many of them into uncharted waters.
There are a number of options available to employers depending on how a business has been affected by the coronavirus crisis.
Temporary Shut or Close Down of Business
A shut down is when a business temporarily closes during slow periods of the year, often during Christmas or other holiday periods. A shut down is not the same as a stand down.
Where due to the coronavirus, there is much less work available for a business, you may consider closing the business down for a period of time.
In order to do so, the relevant modern award must allow your employees to be forced to take annual leave, or unpaid leave, upon notice being given in writing.
In the case of the General Retail Industry Award 2010, clause 32.5 of the award titled ‘Close-down’ states that, “An employer may require an employee to take annual leave as part of a close-down of its operations, by giving at least four weeks’ notice”.
Alternatively, an Employer may reach an agreement with your employees to take annual leave (whether paid or unpaid) on less than four weeks’ notice, in which case an agreement should be entered into with your employees documenting their agreement.
Stand Downs
A stand down occurs when an employer sends employees home if there is no useful work for them to do. Reasons for stand down include events out of the employer’s control like a natural disaster.
Employers cannot generally stand down employees simply because of a deterioration of business conditions or because an employee has coronavirus.
Some examples of when employers may be able to stand down employees include:
- if there was an enforceable government direction requiring the business to close (which means there is no work at all for the employees to do, even from another location);
- if a large proportion of the workforce was required to self-quarantine with the result that the remaining employees/workforce cannot usefully be employed; and
- if there was a stoppage of work due to lack of supply for which the employer could not be held responsible.
If an employer unlawfully stands down employees without pay, the employees will likely be able to recover unpaid wages.
A typical stand down situation exists with restaurants and cafes across Australia which have been ordered to close by the Government.
Pay Cuts
As the law stands now, employers unilaterally cutting an employee’s wage or salary amounts to a dismissal of the employee and a subsequent re-hire, which can give rise to an unfair dismissal or general protections claim against the Employer and liability for redundancy pay.
Accordingly, the better way forward is to procure your employees’ agreement to any such pay cut and have the agreement properly documented in a deed of variation of employment wherein the employee agrees to the pay cut and indemnifies the employer against any claim.
Terminating Employees
Unfortunately, it is inevitable that some employers will need to terminate staff during the period of the coronavirus crisis given falling revenues.
It is essential that any staff terminated are done so in accordance with the Fair Work Act 2009 (Cth) and any applicable modern award, failing which employers may unwittingly give rise to an unfair dismissal or general protections claim.
How we can Help
Marino Law has a team of expert employment lawyers that can assist you in finding the proper method to deal with your employees during this incredibly stressful time. As every business is different, it is essential to receive proper advice before terminating any employees or voluntarily shutting down any business. Properly managing your workforce during this difficult time will help ensure that you emerge from the coronavirus crisis with your business and workforce intact.
If you are a business owner or employee that requires assistance during this difficult time, contact us today on (07) 5526 0157.
