With Cyclone Alfred approaching, many Sunshine Coast businesses are preparing for potential closures. Severe weather events like this can cause major disruptions, and as a business owner, you may be wondering: Do I have to pay my staff if I need to shut down due to the cyclone?
With the rising cost of living, the impact of the Christmas break, and upcoming Easter and ANZAC Day public holidays, cash flow may already be tight. If you’re considering a temporary closure due to Cyclone Alfred, it’s important to understand your obligations when it comes to paying employees.
What Are Your Legal Obligations?
The first step is to check your employees’ Award or Enterprise Bargaining Agreement (EBA). Some agreements require employers to continue paying staff during weather-related shutdowns, even if the business is forced to close. Keep in mind that cyclone-related closures may have different rules than closures due to general bad weather, Christmas shutdowns, or business slowdowns, so it’s important to check the specific wording.
If your Award or EBA does not cover cyclone shutdowns, then the Fair Work Act applies. Under Fair Work rules, employers can stand down employees without pay if there is a stoppage of work caused by something outside of the employer’s control—such as a natural disaster like a cyclone, flood, or bushfire. However, this does not apply if the business is simply experiencing a quiet period due to bad weather.
Other Options to Consider
Before making a decision, Fair Work encourages business owners to consider alternative solutions, such as:
✔ Allowing employees to work from home, if possible
✔ Temporarily relocating staff to a different worksite
✔ Offering annual leave or long service leave
✔ Providing Time Off in Lieu (TOIL), allowing employees to make up hours later
For more details, visit: Fair Work – Pay During Natural Disasters and the latest Fairwork post – https://www.fairwork.gov.au/newsroom/news/cyclone-impacting-parts-of-australia
Supporting Your Staff Through Cyclone Alfred
While standing down employees without pay may be legally allowed, it’s worth considering whether a more flexible or supportive approach would benefit both your team and your business in the long run. If your cash flow allows, you might choose to continue paying staff as usual or provide alternative paid leave options. Some businesses also allow employees to go into negative TOIL and make up the hours later.
Ultimately, the decision depends on what works best for your business—as long as you meet the minimum Fair Work requirements.
Most importantly, stay safe during Cyclone Alfred, and take all necessary precautions to protect yourself, your team, and your business.
