Stood Down Without Pay in Australia? Your Rights (2026)
When stand-down is lawful, when it's not, what entitlements still accrue, and how to challenge an unlawful stand-down through the Fair Work Commission.
Leave & Entitlements Specialist · JD, Monash University — Admitted in Victoria (non-practising)
Short answer
Your employer can lawfully stand you down without pay only in narrow circumstances under section 524 of the Fair Work Act 2009: industrial action by other workers, equipment breakdown not caused by the employer, or a stoppage of work for which the employer cannot reasonably be held responsible. A general downturn in business is not a lawful basis for stand-down.
If you believe a stand-down is unlawful, you can lodge a stand-down dispute with the Fair Work Commission for orders to pay you for the lost time.
When stand-down IS lawful (s524)
- Industrial action by employees other than you or your team;
- Machinery breakdown caused by something outside the employer's control;
- A stoppage of work for which the employer cannot reasonably be held responsible (a flood, a power outage, a government order);
- Some enterprise agreements or contracts include broader stand-down clauses, which apply if the agreement says so.
When stand-down is NOT lawful
- The business is in a downturn but still operating (you should be redeployed or made redundant, not stood down);
- Customer demand is low (not a "stoppage of work");
- The employer has work but doesn't want to pay (this is suspension without pay, not stand-down — and is unlawful in most cases);
- Stand-down for an indefinite period without consultation.
What entitlements continue during a lawful stand-down
Even during a lawful stand-down, you continue to accrue:
- Annual leave;
- Personal/carer's leave;
- Long service leave (where applicable);
- Continuous service for the purposes of redundancy.
You do not accrue new pay (because no work). You may use accrued annual leave or long service leave during the stand-down to keep some income.
How to challenge an unlawful stand-down
- Get the reason in writing. Email your employer asking on what basis the stand-down has been imposed and which clause of the Fair Work Act or your enterprise agreement they rely on.
- Check the trigger. If the reason is "low demand" or "we don't have work for you," that's not a s524 trigger.
- Lodge a stand-down dispute with the Fair Work Commission via the website. There's no fee for stand-down disputes.
- Seek interim orders. The Commission can order back-payment of wages from the date of the unlawful stand-down.
Stand-down vs redundancy
If your role is no longer required, the proper process is redundancy (with notice and severance pay), not stand-down. Some employers use stand-down to avoid paying redundancy. If your stand-down extends beyond a reasonable period (typically 4-6 weeks), and there's no realistic prospect of returning, you may have grounds to argue it has become a constructive redundancy. Use our Redundancy Pay Calculator to see what you'd be owed.
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Official resources
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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Former Fair Work Commission Associate (2021–2024) after two years as a plaintiff-side employment paralegal in Melbourne. Juris Doctor from Monash University (2020). Writes about unfair dismissal, leave entitlements, termination, and enterprise bargaining. Admitted in Victoria, currently non-practising. Based in Fitzroy North.
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