On 25 May 2020 the Fair work Commission handed down in one of
the first post COVID-19 decisions on an employer's decision to
stand down employees. It held that the employer was justified in
standing down an employee under section 524 of the Fair Work Act.
Section 524 is designed to relieve employers of the obligation to
pay wages to employees who cannot be usefully employed in certain
circumstances, such as a stoppage of work.
The Facts
Coral Princess cruises ran a cruise line taking guests to remote
regions of Australia and Pacific and Indian Islands. Government
Regulation designed to prevent the spread of the virus prevents it
from operating. Its revenue fell to zero. Mr Michael Marson (the
marine superintendent) was stood down on 26 March 2020.
