Navigating stand down orders for Australian insolvency practitioners

Hannah Griffiths, Emma Lutwyche and Arvand Ghazizadeh of Pinsent Masons warn that administrators trading a company through voluntary administration must treat stand down decisions as a high risk compliance exercise, since the Fair Work Act’s strict stoppage of work test, contractual terms and personal liability for trading debts mean employees can only be lawfully stood down in narrow circumstances and any misstep can trigger back pay exposure, Fair Work disputes and reputational fall out.

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