The City of Mandurah has temporarily stood down 95 full-time and part-time staff.
The staff are employed in roles directly related to operating recreation centres, libraries and other city facilities that have been forced to close due to the COVID-19 pandemic.
It is understood that staff will receive another two weeks' salary, then can use up any annual and long service leave and after that will be on leave without pay.
A City spokesperson said the roles directly relate to operating the venues that been forced to close.
"We have already redeployed a number of employees from those operations to other roles in the council and we continue to explore options for others as the crisis evolves," the spokesperson said.
"Unfortunately, most Local Governments across Australia face a similar situation due to significant revenue losses from closures of facilities."
The Australian Services Union WA is expected to continue discussions with City chief executive Mark Newman tomorrow.
ASU WA secretary Wayne Wood said it was premature for councils to be standing down workers at this stage of the COVID-19 crisis.
"We believe the council has jumped the gun.
"This came as a shock, we're talking about permanent workers, not casuals," Mr Wood said.
"These people really don't know how they're going to put food on the table for their families, how they're going to pay their bills.
"We're going to need people to stimulate the economy. We don't need people being stood down at this time.
"If the council is facing hardship, then stand down is a possibility but we haven't got to this point for this council yet."
The union is also in discussions with the City of Geraldton, which laid off 120 staff.
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Premier Mark McGowan in a press conference this week called on local governments not to stand staff down, saying they should be redeployed into other areas.
"A couple of weeks ago I called on local governments not to put up rates, fees and charges," Mr McGowan said.
"I'd also urge locals governments not to stand down staff."
Mandurah MLA David Templeman this week also called on cities and shires across the state to put a freeze on rates and "dip into their reserves" to help out those in need.
Councils are not eligible to take advantage of the federal government's JobKeeper payments of $1500 per employee for businesses to keep paying staff.
