Contract clause on lay off and short-time working

Author: Tim Russell and Lynda Macdonald

When to use this model rights to pay contract clause

Use this model contract clause in the contract of employment to lay off employees or keep them on short-time working for a temporary basis.

In light of the coronavirus outbreak, employers should check whether or not staff have such a clause in their contracts. Where it is not included in a contract, the employee's express consent will be needed to implement lay-offs or short-time working. For a model letter seeking consent, see Letter seeking an employee's agreement to a lay off (no contractual right to lay off - express consent necessary) and Letter seeking an employee's agreement to short-time working (no contractual right to place on short time working - express consent necessary).