While most graduates are likely to be aware of leave entitlements, there are other situations where employees do not engage in their employment. These situations can be voluntary or involuntary. This article will provide important information on different circumstances that you should be aware of, including shut downs, unpaid leave, unauthorised leave, and stand downs.
Shutdown
What is a shutdown?
Shutdown, or close down, is when a company or business closes temporarily. This shutdown may be a company-wide closure or of a specific department within a company. Shutdowns commonly occur for holiday periods, such as New Year, Easter, and Christmas.
Can employees be directed to take leave?
Your employer may request you to take annual leave during a shutdown if the award or registered agreement allows it or if you are not covered by an award or registered agreement.
How to find out if you can be directed to take leave?
The Fair Work Commission provides an online tool that allows you to select your industry to see when employers are permitted to direct you to take leave during a shutdown. Graduates can use this tool here.
You should understand the terms of your award or registered agreement to determine the requisite steps when experiencing a company shutdown. Graduates can find their registered agreement here.
What if I am not covered by an award or registered agreement?
If you are not covered by an award or registered agreement, you cannot be forced to take leave unless it is reasonable. This will depend on individual circumstances, including which department is to undergo a shutdown or whether the entire company is. For example, if a particular department within a company is to undergo a shutdown for the Christmas period, it is reasonable for the employer to request that employees within that department take unpaid leave. However, it is not reasonable for the employer to request that employees in any other department that is not undergoing a shutdown to take unpaid leave.
Can I be paid for hours not worked?
If you are sent home early on a particular day, you may still be entitled to payment. This will depend on the type of employment you are engaged in. Graduates who are full-time and part-time employees will typically be paid for the hours they would normally have worked on that day. However, casual employees will only be paid a minimum payment for the shift as reflected in their award.
Employees can also be sent home early without pay. This is usually the case during a stand down.
Unpaid Leave
What is unpaid leave?
Unpaid leave is time off work that you can take that you are not remunerated for. Graduates can typically organise unpaid leave through coordination with their employer. Unpaid leave usually occurs when an employee wishes to take sick leave when they are unwell but have run out of their paid sick leave entitlements. Unpaid leave is on a case-by-case individual basis that does not impact the operations of the business or the entitlements of any other employees.
How does unpaid leave affect my entitlements?
Unpaid leave can affect your entitlements. This is because of service, which is used to calculate entitlements. Service is the total amount of time that an employee has been employed by their employer. However, this does not usually include unpaid periods.
Unpaid leave does not contribute to your accumulated leave entitlements, such as paid annual leave and paid sick leave. However, unpaid community service leave does count as service and does not preclude you from receiving entitlements for the time taken off work.
Unauthorised absences
What is an unauthorised absence?
An unauthorised absence is a time that you take away from work without the employer’s approval. This time is referred to as unauthorised unpaid leave. Unauthorised absences do not count as service and thus preclude you from attaining entitlements from the time spent away from work.
Stand Down
What is a stand down?
A stand down is when your employer directs you not to work because, for reasons outside the employer’s control, you cannot be usefully employed. The employer is responsible for initiating the stand down. Stand downs can also be haphazard and varying, meaning that one employee may be asked to stop working or an entire department or even the entire company.
During a stand down, you retain your employment at the company. However, you do not work and you do not necessarily have to be paid. Payment and other regulations for stand downs will depend on the terms of your award or registered agreement.
An employer can stand down employees either through their award, registered agreement or employment contract, or through the Fair Work Act.
When does an award or registered agreement apply?
You should check your award, registered agreement, or employment contract for stand down provisions. Graduates can use the Fair Work Commission’s Find my award tool to determine which award they are covered by. If you are aware of their award, you can find it here. Graduates covered by an agreement can find it here.
When does the Fair Work Act apply?
The Fair Work Act applies when a graduate is not covered by an award or registered agreement or when their award, registered agreement, or employment contract fails to provide provisions and regulations for stand downs.
The reason for why an employer may choose to stand down an employee or group of employees will depend on the circumstances of the situation. However, under the Fair Work Act, the one requirement is that the reason not be attributed to the employer and should not be within their control. The following reasons may require a stand down of employees:
- Breakdown of employment
- Industrial action
- Natural disaster or emergency
- Enforceable government direction
A quiet business period or not a sufficient amount of work for the employee is not an acceptable reason for a stand down.
An employee cannot use paid sick leave or compassionate leave during the stand down period. However, they will be paid for any public holidays that fall within the stand down period.
How does stand down affect my entitlements?
During a stand down period, graduates continue to accumulate leave entitlements as the time taken off work counts towards service. It also does not break a graduate’s period of continuous service, which is an unbroken period of service with an employer.