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Guarantee payments

Updating author: Kate Upcraft

Summary

  • Employers that are unable to provide their employees with work - throughout a day during any part of which those employees would normally be required to work - must pay them a guarantee payment in respect of that "workless day", subject to a maximum number of workless days in any three-month period. (See Right to a guarantee payment and Limits on amount of and entitlement to a guarantee payment)
  • The duty to pay guarantee payments in respect of a workless day does not arise if the employer's failure to provide work on that day is directly or indirectly attributable to a strike or other form of industrial action involving the employer's own employees or those employed by any associated employer. (See Qualifying conditions)
  • There is an upper limit on the amount of a guarantee payment in respect of any day. (See Limits on amount of and entitlement to a guarantee payment)
  • To qualify for a guarantee payment in respect of a workless day, an employee must have been continuously employed for a period of not less than one month ending with the day before that in respect of which the guarantee payment is claimed. (See Qualifying conditions)
  • An employee is not entitled to a guarantee payment in respect of a workless day if he or she unreasonably refuses the employer's offer of suitable alternative employment on that day. (See Qualifying conditions)
  • An employee forfeits any entitlement to a guarantee payment in respect of a workless day if he or she does not comply with the employer's reasonable request to remain "on standby" in case work does become available on that day. (See Qualifying conditions)
  • An employee may not lawfully be dismissed (or selected for redundancy) for asserting his or her statutory right to a guarantee payment.  (See Complaints to employment tribunals and Dismissal for asserting a statutory right)