Court orders cease work - Checklist
The law briefly
The terms of the injunction will outline the subject of the order.
A court order cannot be ignored and can only be reversed by the affected party approaching the court and seeking to have the injunction removed or changed.
The closure of site is not the fault of the employees so they have to be paid for the day if the result was that work ceased for the day.
If the site is to be closed for more than a short period and the employer is unable to find suitable alternative work then the company may seek a stand-down order from the relevant industrial tribunal in relation to its employees.
If contractors are involved then the contractual terms of the arrangements are in issue. These may provide for circumstances beyond the control of the principal - such as a suspension of payments or a ‘stand-by’ payment provision. Note also that contractual arrangements generally provide for payment for work done and so the contractors would be similarly affected - ie unable to continue to work on the site.
What to do
Check - to do
The company would normally know of the court proceedings and so have been prepared - at least to some degree. If there is a head office involved then the manager on-site could make a call to head office to see if more information can be gleaned.
Lawyers for the company would be expected to be acting quickly to protect the company’s interests. The manager on site should inform the relevant people in order to seek directions.
Contact should be made with the insurers of the company as there may be insurance claims and liabilities involved.
Be alert
Court orders should not be ignored.
To reverse or change a court order, the court has to be approached.
Insurance may be an issue so relevant insurers should be contacted.
Follow-up
Injunctions are preliminary court orders and the full resolution of matters can take some time. This means that employers should act on the basis that any resolution could take a considerable time. It is not necessarily the case that a long period of time is involved as injunctions can be lifted. However, failure to be prepared for a disruptive break in work due to a court injunction would be a mistake. This would mean that contractors’ work would be reviewed and other work for employees should be investigated.
Contractors’ contracts should provide for a contingency like this. The contract may leave the provision of work to the contractor at the total discretion of the principal. In such a case the principal company simply informs the contractor that work is not currently available. Where there is a contract to provide work over a specified period of time, the principal company should consider a provision that allows for the suspension of work in circumstances beyond the control of the principal.
Stand-down provisions may be in the relevant industrial instruments that apply to the employees. This allows employers to stand-down employees in circumstances where there is no work for reasons beyond the control of the employer. If there is no stand-down clause in the award or agreement then the employer must apply to the relevant industrial tribunal.
Information sharing is important and a company should attempt to keep all interested parties informed in order to avoid misconceptions and rumours.
Legal advice to managers should be available and managers should know who to contact if and when issues like the one described arise.
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