Managing the effects of COVID-19 on your business
As we navigate these times of uncertainty and economical strain, rapidly changing every day, it’s imperative for Australian businesses to be informed and take proactive steps to ensure that they are managing the new risks to their employees, logistical operational issues, and the future of their business.
The current health crisis is putting a major strain on all Australians, we have compiled this blog with information that may help you to manage your workplace during the current health crisis, COVID-19 and legal implications of standing down employees to consider.
Be Proactive
The good thing, if you’re reading this, you are being proactive and thinking about what you can do regarding putting operational procedures in place that can help you to continue the successful operation of your business. Now is the time to think about the logistics of how you can continue to service your consumers and provide value to them, how your employees can continue to work in a safe and effective manner, and the effects that your employees needing to take leave to self-isolate may have on your business.
Before considering further measures such as standing down employees or closing your business, keep in mind the Queensland Government’s regulations and consider the following:
Can your employees work remotely? If they can’t work remotely can they work on a rotating roster to limit contact with others?
What measures can you put in place to continue safe operations of your business for employees and customers?
Depending on your industry, can you adapt your business to service consumers more remotely or with social distancing? (e.g. takeaway/deliveries for hospitality businesses, online and virtual meetings, etc.)
How will you communicate with your customers and employees about your COVID-19 policy?
Managing employee wages and employment
It’s a time of great economical and societal strain with likely long-term consequences on Australians, extending beyond our health. If your business has faced significant strain during this time and it is not possible to:
continue to pay employees or your employees are unable to perform their duties remotely;
your business needs to close due to government restrictions; or
it’s not feasible to continue operations temporarily,
You may be considering standing down your employees. You will need to ensure you follow the proper employee dismissal procedures, outlined in Section 524 of the Fair Work Act 2009, to avoid unfair dismissal claims or other legal action. It establishes that:
The employee cannot be usefully employed - this is one of the most important requirements – but unfortunately, the case law is complex and not entirely consistent;
There is a stopping of work (which might not necessarily include a reduction of work, including where there is a drop in demand for services);
The stoppage is for any cause for which the employer cannot be held reasonably responsible; and
The reason that the employee cannot be usefully employed is because of the stoppage of work.
It’s likely in your best interests to look into other options that will allow you to avoid standing down your employees if you can. If it will avoid redundancies and lessen the financial impact on your business, encourage employees to use accrued annual leave or long-service leave entitlements or reduce work hours if possible.
Employment Law can be complex, especially during a health crisis like COVID-19. And as always, we have the best interests of Australian business owners in mind.
We recommend contacting our experienced team at Optimum Legal for further guidance with navigating employment law during this time. Our team is fully contactable via phone and email for virtual consultations at this time to service our clients.
Email info@optimumlegal.com.au or call 07 3228 8400.