A work stoppage has left you unable to pay wages.
The crew is available, but the job is not
A contractor’s main project is suspended while a supply problem is resolved. The employees are ready to work, but the next customer payment will be delayed. The owner considers telling everyone to stay home without pay because the company cannot afford payroll. Before giving that instruction, the business needs a checked employment position and a realistic account of the cash shortfall.
Separate the cash problem from the right to stand down
A lack of money does not itself establish that employees can lawfully be stood down without pay. The Fair Work Ombudsman explains that stand-down rules depend on the circumstances and applicable agreement or contract. Being quiet or having insufficient work is not, by itself, a basis under the general provisions.
Get advice about the actual stoppage and the instruments covering the employees before changing pay. A situation that feels outside the owner’s control still needs assessment. Keep the operational facts, proposed dates and available work clear for the adviser.
Check what work can still be performed
Identify other current jobs and useful duties, with the necessary skills, safety arrangements and contractual limits. Do not invent work merely to make the forecast look better, but do not overlook feasible work because the main site is unavailable.
Ask the employment adviser about any proposed changes to duties, hours or leave. Record the consultation and agreement requirements that apply. Staff need accurate information about their position, not a promise that a later customer payment will settle every uncertainty.
Calculate the payroll gap accurately
Reconcile wages already earned and the next payroll commitment with usable cash and realistic receipts. Include other payments falling due in the same period. Separate a confirmed customer payment from an expected reopening date or an insurance claim awaiting assessment.
Examine practical options with the accountant and appropriate advisers. Accelerating a valid invoice or agreeing a customer payment may help, but only if the money will actually arrive. Borrowing to fund one wage run needs a plan for the following one as well.
Communicate the checked position promptly
Tell employees what has been confirmed, what remains under assessment and when they will receive the next update. Keep a record of the information given. Do not make an unauthorised deduction or describe an unpaid amount as voluntary employee support without proper advice.
If wages and other debts cannot be met, seek urgent qualified insolvency advice. The stoppage may have revealed a wider problem that cannot be fixed by shifting a payroll date. Give the adviser the whole creditor and cash picture rather than only the most immediate payment.
Get two answers before changing payroll
Confirm the applicable employment rules and whether useful work remains available.
Calculate the actual wage shortfall and obtain advice on a lawful, funded response before communicating a payment change.
Call CRP today about the cash and debt pressure from a work stoppage, alongside your employment and insolvency advisers.