Quick Summary
Quick Summary
- Section 524 of the Fair Work Act 2009 lets employers stand down employees without pay only when they cannot be usefully employed due to industrial action, equipment breakdown, or a stoppage the employer did not cause.
- Standing down an employee is not the same as suspending them for misconduct. A stand down under s.524 cannot be used as a disciplinary measure.
- Employees remain employed while stood down and keep accruing leave entitlements, but the employer is not obliged to pay them for the stand-down period.
- Casual employees generally cannot be stood down under s.524 because they are paid only for hours worked and have no guaranteed hours.
- Wrongfully standing down an employee can trigger a general protections claim or an unfair dismissal claim if the employee treats the stand down as a repudiation of their contract.
An employer can stand down an employee without pay under section 524 of the Fair Work Act 2009, but only when strict conditions are met. Misapplying it can expose your business to a general protections claim or an unfair dismissal claim worth up to $95,050 (half the $190,100 high income threshold from 1 July 2026).
What Does It Mean to Stand Down an Employee?
Standing down an employee means directing them not to attend work during a period when the employer genuinely cannot provide useful work due to a qualifying cause. The employment relationship continues: the employee keeps accrued entitlements, continuous service is not broken, and they return to work once the cause ends. The employee is typically not paid, but they are not dismissed.
This is fundamentally different from performance management or disciplinary suspension. The Fair Work Ombudsman makes clear that employers cannot use a stand down as a punishment.
When Can an Employer Stand Down an Employee?
Section 524 permits a stand down only when an employee cannot be usefully employed because of one of three qualifying causes:
- Industrial action (other than action organised by the employer)
- Breakdown of machinery or equipment the employer cannot reasonably be held responsible for
- A stoppage of work for any cause the employer cannot reasonably be held responsible for
An enterprise agreement or contract may include additional stand-down provisions, but cannot reduce the protections in s.524. The Fair Work Act 2009 on legislation.gov.au sets out the full text. The employer must demonstrate the employee cannot be usefully employed in their normal role or any other suitable role. Simply having less work is not enough.
How to Stand Down an Employee
If s.524 conditions are met:
- Verify the qualifying cause. Document what happened and why it falls within s.524.
- Check for alternative work. Confirm there is no useful work the employee could perform elsewhere.
- Give written notice. Issue a stand-down letter stating the reason, expected duration, and the employee’s right to seek advice. Review your HR best practice obligations.
- Notify of return. When the cause ends, immediately direct the employee back to work.
A poorly executed stand down can be challenged as adverse action under section 340 of the Fair Work Act. If the employee treats the unpaid stand down as a repudiation of contract and resigns, you may face a constructive dismissal claim within the 21-day window.
⚠️ Stand Down Is Not Suspension
Section 524 stand down and disciplinary suspension are legally distinct. Using a s.524 stand down as a misconduct penalty is a common error that exposes employers to general protections and breach-of-contract claims. Check your employment contract or enterprise agreement for suspension provisions before acting.
Key Takeaways
Key Takeaways for Employers
- ✓Stand down rights come from Fair Work Act s.524 or an enterprise agreement term, not from common law.
- ✓You must satisfy all three s.524 conditions: a qualifying cause, the employee cannot be usefully employed, and you are not responsible for the stoppage.
- ✓Give written notice to the employee explaining the reason, expected duration, and their right to seek advice.
- ✓Standing down an employee pending investigation is a separate matter that usually requires pay unless your contract or award says otherwise.
- ✓Always document your reasoning. A poorly justified stand down can cost up to $95,050 in unfair dismissal compensation (half the $190,100 high income threshold from 1 July 2026).
Fair Work Centre
Need help with performance management guide?
Our employment lawyers advise employers only — no call centres, no generalists. Get straight answers from people who know the Fair Work Act inside out.
Free Templates
Get free employment agreement templates — Basic, Full-Time, Part-Time & Casual.
How Long Can You Stand Down an Employee
There is no statutory maximum. The stand down lasts only as long as the qualifying cause persists. Once the cause ends, the employee must return to work. Best practice is to review weekly and document why the cause still exists. For small business (fewer than 15 employees), the minimum employment period before an unfair dismissal claim is 12 months; for larger employers, 6 months.
Can You Stand Down an Employee for Misconduct
No. Section 524 stand down cannot be used as a disciplinary response to misconduct. Standing down an employee without pay because they allegedly misbehaved is likely to constitute adverse action. If you need to remove an employee while investigating allegations, that is a suspension pending investigation, not a stand down. Whether you can suspend without pay depends on your contract, enterprise agreement, or modern award. See our performance management resources or download free employment documents and templates for compliance.
Standing Down an Employee Pending Investigation
Unless your contract expressly allows unpaid suspension, the employee should remain on full pay during an investigation. The Fair Work Commission has held that suspending without pay without a clear contractual right may breach the employment contract. Unfair dismissal compensation is capped at $95,050 (half the $190,100 high income threshold from 1 July 2026).
Standing Down Casual Employees
Casual employees generally cannot be stood down under s.524 because they have no guaranteed hours. The practical equivalent is not rostering them, provided you do not breach casual conversion obligations.
Employer Obligations During a Stand Down
During a valid stand down, continuous service continues, leave accrues, and superannuation is generally not payable. Seek advice before acting, and see our termination of employment guide for related obligations.
Frequently Asked Questions
An employer can stand down an employee under section 524 of the Fair Work Act 2009 when the employee cannot be usefully employed because of one of three causes: industrial action (other than industrial action organised or engaged in by the employer), a breakdown of machinery or equipment that the employer cannot reasonably be held responsible for, or a stoppage of work for any cause the employer cannot reasonably be held responsible for. An enterprise agreement or contract of employment may also include stand-down provisions, but those terms cannot reduce the protections in s.524. If none of these circumstances apply, the employer has no right to stand down the employee without pay.
Yes, but only if the s.524 conditions are met. The employer must demonstrate that the employee cannot be usefully employed in their role or any other suitable role within the business or an associated entity due to a qualifying stoppage. During a valid stand down, the employer is not required to pay the employee’s ordinary wages. However, the employment relationship continues: the employee retains their accrued leave entitlements, their continuous service is not broken, and they return to work when the qualifying cause ends. If the employer cannot prove the s.524 grounds, the stand down may amount to an unlawful deduction from wages under the National Employment Standards.
Generally no. Casual employees are engaged and paid only for the hours they actually work, with no guaranteed ongoing hours. Because a stand down under s.524 addresses a situation where an employee who is guaranteed work cannot be usefully employed, it has limited application to casuals. The practical equivalent for a casual is simply not rostering them for shifts, provided the employer does not breach any casual conversion obligations or anti-adverse-action provisions. If a casual believes they have been treated less favourably for a discriminatory or prohibited reason, they may file a general protections claim.
Standing down an employee means directing the employee not to attend work and not to perform work for a period during which the employer is genuinely unable to provide useful work due to a qualifying cause under s.524. The employee is not dismissed and the employment relationship continues. The employee is typically not paid during the stand-down period, though leave accruals and service continue. When the cause ends, the employee returns to their normal duties. It is a temporary measure, not a termination or a disciplinary sanction.
There is no fixed statutory maximum for a stand-down period under s.524. The stand down lasts only as long as the qualifying cause persists. If the industrial action ends, the equipment is repaired, or the stoppage resolves, the employee must be directed back to work immediately. An employer who keeps an employee stood down after the cause has ended risks a claim for unpaid wages. Best practice is to review the stand down weekly, communicate updates, and document why the qualifying cause continues to exist.
No. A s.524 stand down cannot be used as a disciplinary measure for misconduct. Standing down an employee pending an investigation into alleged misconduct is a different action that usually requires pay unless your employment contract, enterprise agreement, or modern award expressly permits unpaid suspension. Using a s.524 stand down to punish or pressure an employee over alleged misconduct is likely to constitute adverse action under section 340 of the Fair Work Act and may expose the employer to a general protections claim.
Yes. During a valid stand down under s.524, the employment relationship continues uninterrupted. The employee’s continuous service is not broken, and they continue to accrue paid annual leave and personal leave entitlements. They also retain their right to request flexible working arrangements and parental leave entitlements. However, the employee cannot generally access paid leave during the stand-down period if the employer has not agreed to it, because the purpose of the stand down is that the employee is not performing work.
A stand down under s.524 is triggered by an external cause that prevents useful work, such as industrial action or equipment breakdown. The employee is not at fault. A suspension is a disciplinary or investigative measure where the employer directs an employee not to attend work, usually while allegations of misconduct are investigated. Suspension may be with or without pay depending on the employment contract, award, or enterprise agreement. Standing down is operational; suspension is procedural. Confusing the two is a common source of claims.
Join Fair Work Centre
Protect your business with the right HR support.
Join hundreds of Australian employers who rely on Fair Work Centre for employment law advice, HR documents, and Fair Work Commission representation.