How to implement a lay-off or short-time working

Author: Claire Birkinshaw

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Be aware that lay-offs and short-time working can be a useful way of handling temporary work shortages.
• Understand that you have no right unilaterally to lay an employee off or to put them on short-time working, unless an express or implied term of the employment contract entitles you to do so.
• Take into account that an employee who is wrongfully laid off or put on short-time working may resign and claim constructive dismissal, complain that an authorised deduction from wages has been made or sue for damages for breach of contract.
• Be aware that where an employee is laid off or put on short-time working they may be entitled to statutory guarantee payments in respect of up to five workless days in any three-month period.
• Appreciate that you may be liable to pay statutory redundancy payments to employees who comply with complex notice requirements having been laid off or kept on short-time working for specified periods of time.