Last updated: January 28, 2026
What if a business is directed to close down?
Authorities such as the State Emergency Service, fire authorities or government departments may advise or direct businesses to close because conditions are unsafe.
When this happens, employers and employees should first try to reach agreement for the employee to take leave – refer to the section ‘Leave options explained’ below for further information on the types of leave that may be available.
In some cases, employers may stand employees down without pay. The Fair Work Act allows an unpaid stand down if there is a stoppage of work for reasons outside the employer’s control and employees cannot be usefully employed during the stoppage.
The rules in the Fair Work Act about stand downs are very restrictive, so employers should seek advice before standing employees down without pay. Employers should also check any relevant award, enterprise agreement or employment contract for additional rules.
What if a business chooses to close down?
If an employer closes without an official direction, employees will usually need to be paid for their rostered hours for the period of the closure.
Some employees may be able to continue to work from home. For those who can’t, employers can discuss using leave (such as annual leave or long service leave) by agreement – refer to the section ‘Leave options explained’ below for further information.
When employees cannot get to work safely
Sometimes the business will remain open during a natural disaster, but an employee cannot travel safely or has been advised to evacuate or stay home.
If the employee can work from home, they should do so and be paid for the hours worked. If working from home is not possible, employers should consider requests to use annual leave or long service leave or approve authorised unpaid leave. The aim is to keep everyone safe while remaining fair.
Leave options explained
Annual leave
Employees may request annual leave to prepare, defend, or evacuate their property. Employers should not unreasonably refuse requests when employees have enough leave accrued.
Unpaid leave
If an employee has no paid leave left, employers can agree to unpaid leave. Authorised unpaid leave does not count toward continuous service for accruing annual leave and personal or carer’s leave under the National Employment Standards.
Personal/carer’s leave
If an employee or an immediate family or household member is injured or unwell because of the disaster, the employee can access personal or carer’s leave. Employees must notify their employer promptly and provide reasonable evidence if asked.
Community service leave
Employees who volunteer with emergency services can take unpaid community service leave when they are requested or reasonably expected to assist during an emergency and they are part of a recognised emergency management body. There is no fixed limit on this leave. It covers the time taken to perform the activity, travel time, and rest time immediately after. Some state laws and workplace policies may offer more generous arrangements. Plan ahead for known volunteers and have a simple process for notifying managers when a deployment occurs.
Safety first for work and travel
Before sending people into high-risk areas, employers should consider whether the work is essential. It may be safer to postpone a visit or use phone or video conferencing.
When travel is unavoidable, brief employees on local conditions and how they may change. Provide links to official sources and encourage staff to follow warnings and alerts.
If a site is impacted by flood water, smoke, heat stress, power failure or damage, assess whether employees can be safely and usefully employed elsewhere. If not, the leave and stand down options outlined above may be available.
Checklist for employers
- Monitor official advice and decide early whether to close, modify operations, or continue with precautions.
- Explain the decision to close. Tell employees whether the business is closing, partially closing, or staying open, and why.
- Check whether employees can be usefully employed on site or remotely, or whether leave or stand down options need to be considered.
- Outline the options to employees. Be clear about pay, stand downs, and leave choices. Keep written records of decisions and agreements.
- Communicate clearly and often. Use text messages, email, or the company intranet for updates.
- Review safety risks daily, including travel routes, local conditions, and site hazards.
- Be flexible where possible. Temporary duties, remote work, or adjusted hours can help employees manage family and property responsibilities.
- Look after wellbeing. Encourage use of your Employee Assistance Program and share mental health resources.
- After the event, debrief and update your disaster plan.
Key takeaways
- Plan ahead for natural disasters and review your policies on leave and stand downs.
- Communicate clearly and regularly with employees to reduce stress and confusion.
- Prioritise safety by limiting non-essential travel and considering remote work options.
- Use official sources for accurate information and encourage employees to do the same.