Fair Work Act 2009 (Cth) 

The Fair Work Act 2009 (Cth) is the foundation of Australia’s workplace relations system, setting out the rights and obligations of both employers and employees. Whether it’s ensuring compliance with national employment standards, navigating the complexities of enterprise agreements, or resolving disputes under the general protections provisions, understanding your legal responsibilities under the Fair Work Act is vital. Bentham Sydney Employment Lawyers specialise in interpreting and applying the Fair Work Act 2009 (Cth) across a range of workplace issues, providing clear and authoritative advice. If you need assistance with any matter relating to the Fair Work Act 2009 (Cth), obtaining expert legal guidance from Bentham Sydney Employment Lawyers is essential.

Fair Work Act 2009 (Cth) nes lawyers

Employer Rights to Stand Down Employees under the Fair Work Act 2009 (Cth)

Under the Fair Work Act 2009 (Cth), employers have the right to stand down employees without pay under specific circumstances. This right is a significant deviation from the common law principle that employers generally have no inherent right to withhold pay when an employee is ready and willing to work, unless otherwise stated in the employment contract. This article outlines the circumstances under which an employer can lawfully stand down an employee, the requirements for doing so, and the implications for employees.

Circumstances Justifying Stand Downs

Section 524 of the Fair Work Act 2009 (Cth) provides three primary conditions under which an employer may lawfully stand down employees without pay:

1. Industrial Action: Stand downs are permissible if the employee cannot be usefully employed due to industrial action, provided that this action is not organised or engaged in by the employer.

2. Breakdown of Machinery or Equipment: Employers may stand down employees when there is a breakdown of machinery or equipment, as long as the employer cannot reasonably be held responsible for the breakdown.

3. Stoppage of Work: Stand downs are also justified in the event of a stoppage of work for reasons beyond the employer’s reasonable control.

Understanding “Usefully Employed”

In Kidd v Savage River Mines (1984) FCR 398, it was established that an employee can be considered "usefully employed" if there is work available that the employee could perform, even if it is not typically within their usual duties, unless the employment contract specifies otherwise. This principle affirms that the threshold for standing down an employee is high, as the employer must demonstrate that there is no useful work available.

Interplay with Employment Contracts and Enterprise Agreements

The Fair Work Act 2009 (Cth) does not override existing contracts of employment or enterprise agreements. Therefore, any rights or requirements specified in these documents, such as additional notice periods or consultation obligations, must be adhered to. Employers should review these documents carefully before proceeding with a stand down.

Implementing a Lawful Stand Down

1. Determining the Applicability of Stand Down
: To lawfully stand down an employee, employers must confirm that the reason for the stand down falls within one of the categories outlined in Section 524 of the Fair Work Act 2009 (Cth). Verify that the stoppage of work is due to circumstances beyond their control and that no alternative useful work can be provided to the employee.

2. Notice and Consultation: While there is no explicit statutory requirement for notice or consultation before a stand down, employers must consider any contractual or agreement-based obligations. For example, some enterprise agreements or modern awards may require consultation with employees or their representatives before a stand down is implemented.

3. Leave Entitlements During Stand Down: During a stand down period, employees continue to accrue leave entitlements under Section 22 of the Fair Work Act 2009 (Cth). This period is counted as service, preserving the employee’s continuous service. However, the treatment of long service leave may vary depending on state or territory laws.

Conclusion

Standing down employees under the Fair Work Act 2009 (Cth) is a measure that should be approached with caution. Employers must ensure that the stand down is justified by the circumstances and complies with both statutory requirements and any contractual or agreement-based provisions. As this process can significantly impact employees' financial stability and entitlements, seeking legal advice to navigate these requirements is advisable.

For advice on managing employee stand downs and ensuring compliance with the Fair Work Act 2009 (Cth), please contact Bentham Sydney Employment Lawyers.

Fair Work Act 2009 (Cth) Employees

Employee vs Independent Contractor 2024

In 2024, the distinction between employees and independent contractors remains a crucial yet often challenging issue. In Aspire 2 Life Pty Ltd v Ms Jessica Tidmarsh [2024] FWCFB 289, the Full Bench of the Fair Work Commission provided valuable insights into how this determination is made, highlighting the importance of a thorough analysis beyond mere contractual labels. For expert advice on similar matters, Bentham Sydney Employment Lawyers is here to assist.

Case Summary

Ms. Tidmarsh, a disability support worker, claimed she was unlawfully dismissed by Aspire 2 Life Pty Ltd (Aspire 2 Life). Aspire 2 Life contested her claim, arguing that she was an independent contractor rather than an employee, as specified in the contracts she had signed.

Original Decision

In the initial ruling, Deputy President Roberts relied on principles from the High Court’s decision in CFMEU v Personnel Contracting [2022] HCA 1. The Deputy President's approach focused on the rights and obligations set out in the contract rather than the historical context of the parties' relationship. Although the contracts labelled Ms. Tidmarsh as an independent contractor and included terms typical of such arrangements—like having an ABN, managing her own taxes and insurance, and providing her own equipment—other key provisions suggested an employment relationship.

Ms. Tidmarsh's contract included:

1. Payment on an hourly basis;
2. Weekly timesheet submissions to Aspire 2 Life’s bookkeeping department;
3. Direct payments for services rendered;
4. Obligations to work within specified hours and adhere to company policies; and
5. Restrictions on working for competing businesses and prohibitions on subcontracting.

These elements pointed to a level of control and integration into Aspire 2 Life’s business operations, indicating an employment relationship rather than an independent contractor arrangement.

Appeal and Full Bench Decision

Aspire 2 Life’s appeal challenged the finding that Tidmarsh was an employee. The Full Bench of the Fair Work Commission upheld the original decision, affirming that the relationship between Tidmarsh and Aspire 2 Life was indeed that of employer and employee. The Full Bench, following principles from JMC Pty Limited v Commissioner of Taxation [2022] FCA 750, emphasised that despite the contractual label of "independent contractor", the practical reality of the relationship supported an employment classification.

The Full Bench also noted that:

1. Aspire 2 Life’s significant control over the nature and delivery of Tidmarsh’s work; 
2. The integration of Tidmarsh’s role into the core business of Aspire 2 Life; and 
3. The lack of rights to subcontract or delegate work.

These factors outweighed the contractual terms suggesting a contracting relationship, reinforcing that the practical reality of the arrangement was paramount.

Key Takeaways

1. Contract Labels vs. Practical Reality: Aspire 2 Life Pty Ltd v Ms Jessica Tidmarsh [2024] FWCFB 289 illustrates that a contract’s description of a worker as an "independent contractor" does not conclusively determine their status. The actual terms and how they play out in practice are crucial in assessing whether a worker is an employee or contractor.

2. Control and Integration: Significant control by the employer and the integration of the worker into the business are strong indicators of an employment relationship. 

How Bentham Sydney Employment Lawyers Can Assist

Determining whether a worker is an employee or an independent contractor can be complex and nuanced. The Full Bench of the Fair Work Commission's commentary highlights the importance of a detailed analysis of both contractual terms and practical realities. At Bentham Sydney Employment Lawyers, we offer expert advice to navigate these complexities effectively.

If you are involved in a dispute regarding employment status or need assistance with similar legal matters, contact Bentham Sydney Employment Lawyers. Our team of experienced solicitors is dedicated to providing strategic advice and representation to protect your interests.

Contact Form

Fill out the form below to receive a same day free consultation call

About us

At Bentham Sydney Employment Lawyers, we make it our mission to uphold the integrity of Australia's workplace landscape. Our dedicated team strives to ensure that every workplace is a safe and just environment for all. Let our passion for employment law guide you towards a brighter future.

Trust the experts at Bentham Sydney Employment Lawyers to navigate the complexities of workplace laws with precision and care. Your peace of mind is our priority, and together, we can build a stronger, fairer workplace for everyone.

Why us?

1. Free

Initial call to obtain guidance on your prospects of success and an overview of what work is involved in your matter

2. Easy

Straightforward and simple legal advice that cuts through the legal jargon and provides clear, actionable solutions

3. Dynamic

Advice and support provided to you instantly. Delay can cause complications; act now for prompt solutions

Additional Services

For assistance from Bentham Sydney Employment Lawyers with other areas of employment law, click on the links below or book a free initial call
Unfair Dismissal

Bentham Lawyers excel in unfair, unlawful, and wrongful dismissal cases for employers and employees. Competitive rates. See how we can help.

bullying and harassment lawyers
Bullying and Harassment

Bentham Lawyers offer clear, quick advice on bullying, harassment, workplace discrimination and equal opportunity. See how we can help.

fair work pay advice modern awards
Employment and Fair Work Advice

Bentham Sydney Employment Lawyers offer expert employment and Fair Work advice at competitive rates. See how we can help.

enterprise agreement lawyers
Enterprise Agreements

We expertly negotiate enterprise agreements tailored to your needs, ensuring compliance and optimal outcomes for your business.

nes lawyers pay and entitlements
Award Interpretation

Bentham Sydney Employment Lawyers clarifies award terms, ensuring your business operations align with legal requirements.

post employment restraint lawyers
Contract Disputes

Mobirise is an easy website builder. Just drop site elements to your page, add content and style it to look the way you like.

general protections lawyers
General Protections Disputes

We defend your rights in general protections disputes, offering strategic solutions to safeguard your workplace.

deed of release lawyers
Deed of Release Preparation

We draft or negotiate Deed of Release agreements, ensuring clear terms that protect your legal and financial interests.

Contact Us

Get in touch
  • Phone: +61 0450 491 637
  • Email: ph@benthamlegal.com.au

  • Address:
  • Unit 29/15 Valediction Road, Kings Park NSW 2148
  • Working hours:
  • 8:00AM - 7:30PM

Got Questions?

Employers should regularly review and update their employment policies and practices to ensure compliance with the Fair Work Act 2009 (Cth) and the NES. This involves maintaining accurate records of employee entitlements, providing required notices and documentation, and ensuring fair treatment across all workplace practices. Employees can verify their entitlements by familiarising themselves with the NES and relevant modern awards or enterprise agreements, reviewing their payslips, and seeking advice if discrepancies arise. For expert guidance and assistance, Bentham Sydney Employment Lawyers is available to provide comprehensive legal advice and support to both employers and employees to ensure compliance and address any issues related to employment rights and entitlements.

The primary objectives of the Fair Work Act 2009 (Cth) are to provide a balanced framework for cooperative and productive workplace relations, establish a safety net of minimum employment conditions, promote fair and equitable treatment for employees, and resolve disputes in a manner which is just, quick, and cheap. The Fair Work Act 2009 (Cth) aims to protect employees by ensuring minimum standards of employment, while also providing employers with a framework for managing their workforce that promotes fairness and reduces disputes. It seeks to achieve these objectives through the implementation of the National Employment Standards (NES), modern awards, and enterprise agreements.

The National Employment Standards (NES) provide the minimum employment entitlements that cannot be undercut by modern awards or enterprise agreements. However, modern awards and enterprise agreements can provide conditions that are more beneficial than the NES. If an award or agreement provides a benefit that exceeds the NES, that provision will apply. For instance, an enterprise agreement might offer more annual leave or a higher rate of pay than the NES stipulates. However, if an award or agreement offers conditions that are less favourable than the NES, the NES will prevail.

Under the NES, employees are entitled to four weeks of paid annual leave per year of service. This leave accrues progressively based on the number of hours worked and is usually calculated on the basis of a full-time work week. Employees have the right to take annual leave at a time that is mutually agreed upon with their employer. Employers must grant annual leave requests unless the leave would unduly disrupt the business. Additionally, employees may be entitled to cash out unused annual leave under certain conditions, provided this is allowed by their modern award or enterprise agreement.

The Fair Work Act 2009 (Cth) provides for up to 12 months of unpaid parental leave for eligible employees, with an option to request an additional 12 months. This leave is available to parents who have worked for their employer for at least 12 months before the expected date of birth or adoption. During parental leave, employees are entitled to return to their pre-leave position or a comparable role. Parental leave does not affect other leave entitlements, such as annual or personal leave, which continue to accrue during the parental leave period.

The Fair Work Act 2009 (Cth) ensures fair and safe work conditions by incorporating obligations from other legislation, such as state and territory workplace health and safety (WHS) laws. Employers are required to provide a safe working environment, ensure employees are not exposed to risks of injury or illness, and comply with WHS standards. This includes conducting risk assessments, implementing safety procedures, and providing necessary training and equipment. Employers must also consult with employees on health and safety matters and address any concerns raised. The Fair Work Act’s provisions work in conjunction with WHS laws to promote a safe and healthy workplace.