What Happens When the Business Doesn't Open
Imagine arriving at your workplace in the morning, only to find the doors locked and the business closed. Your employer has decided not to open the business today. The pressing question is: are you still entitled to your pay for that day?
In such a situation, the employee was shocked to learn they wouldn't receive pay for the day they were ready to work but couldn't because of the employer's decision. Is this fair? And what does the law say?
What the Courts and Law Actually Look At
In labor law, there is a clear rule: if an employee is available to the employer and the employer decides not to allow them to work, they are obligated to pay the employee their salary. This is a fundamental principle that protects workers' rights.
In certain cases, the employer can force an employee to take mandatory leave not exceeding seven days, provided the employee has sufficient accrued leave. In the case of a longer leave, the employer must notify the employee two weeks in advance.
If the employer wishes to send the employee on unpaid leave, it requires the employee’s explicit consent. Non-consent can be grounds for a pre-dismissal hearing, so it's important to be aware of the implications.
When This Is Relevant — Checklist
- ✓Did the employer notify in advance about the business closure?
- ✓Were you offered the option to take paid or unpaid leave?
- ✓Do you have sufficient accrued leave?
- ✓Was adequate notice given for mandatory leave?
- ✓Were you offered an alternative work arrangement?
The Specific Law That Applies
The Hours of Work and Rest Law aims to ensure that employees receive their entitled rights even when they are not actually working due to employer decisions. If you find yourself in a situation where the employer is not opening the business, it's important to remember that you may still be entitled to pay.
Questions Everyone Asks — But No One Asks the Lawyer
Real Situations — Which Side of the Line Are You On?
- ✓Receptionist who arrived at work to find the office closed without prior notice. Entitled to pay.
- ✓Factory worker informed by the employer about mandatory leave with sufficient notice. Not entitled to additional pay.
- ✓Store employee required to take unpaid leave without consent. Can contest the decision.
What to Do Right Now
The first step is to review your agreements with the employer and ensure they comply with legal requirements. It’s important not to sign documents you don’t understand or that don’t align with your rights.
If you choose to do nothing, the problem may escalate and lead to loss of pay and other consequences. Therefore, seeking legal advice promptly is advisable.