Website of the UK government

Please note that this website has a UK government accesskeys system.

Public services all in one place

Main menu

Wednesday, 8 October 2008

Employment

Employment

Temporary lay-off: introduction

In certain circumstances, you might be temporarily laid off from your job. Find out what this means and how you'll be paid when you're laid off.

What is a lay-off?

If your employer doesn't have enough work for you, they may tell you to stay at home. If you're off work for at least one complete working day, this is a lay-off.

Short-time

Your employer might have enough work to put you on short-time. This means your hours of work are cut.

Lay-off and redundancy

A lay-off is temporary - if you're no longer needed to do your job its classed as redundancy. In some circumstances you can apply to be made redundant once you have been laid off for a certain period

Is your employer allowed to lay you off?

Employers do not have a general right to lay off employees with out pay. Although your employer is normally entitled to tell you not to come into work, in many cases they will still have to pay you your full pay.

There's no upper limit for how long you can be laid off or put on short-time, but employees who only get paid for work they actually do have the right to leave and claim redundancy after a certain amount of time (see below).

If your employer is being completely unreasonable in laying you off, you might consider resigning and claiming constructive dismissal. Situations where this might happen include:

  • if it seems they are laying people off indefinitely in order to avoid making people redundant
  • if they are unfairly singling you out

Are you paid while laid off?

You should get your full pay unless it is part of your contract that your employer can lay you off without pay (or on reduced pay). You should remember that something can be a part of your contract if:

  • it's written in your contract
  • you've verbally agreed it with your employer
  • it's in an agreement negotiated by a trade union
  • there's a national agreement for the industry
  • there's clear evidence that it's an established custom and practice

If it's not part of your contract, you can agree to change your contract if you wish (for example, a period of lay off may be better for you than redundancy). If you agree to change your contract to allow unpaid lay-off, it is advisable to write down the agreement, making clear how long the agreement is going to last and whether you can change your mind.

Whatever your contract says, while you're laid off, you'll have the right to be paid the larger of:

  • what the contract provides for (which could be full pay or a reduced amount)
  • Statutory Guarantee Pay (if you qualify) (see below)

Statutory Guarantee Pay

Statutory guarantee pay is the minimum you should be paid when laid off. To get Statutory Guarantee Pay you must:

  • have been employed continuously for at least one month - this includes part-time workers
  • reasonably make sure you're available for work
  • not refuse any reasonable alternative work, including work that isn't in your contract
  • not have been laid off because of industrial action

Guarantee payments are made for a maximum of five days in any rolling period of three months. After that time you should get them for another five days. If you normally work fewer than five days a week, you're paid for the number of days in your normal working week.

Guarantee payments are worked out by multiplying the number of normal working hours for the day in question by your average hourly rate. You'll receive your daily rate or the upper limit of £20.40, whichever is less. This means that most people will get the upper limit of £20.40 per day.

When Guarantee Pay has run out you should go to your Jobcentre to find out about benefits.

What to do next

If your employer lays you off, check whether this is allowed under your contract or through custom. If you wish to agree to change your contract so that lay off is allowed, you can do so. Another option open to you is to agree to take some annual leave instead of lay off.

If lay off is allowed, make sure your employer knows they should still give you Statutory Guarantee Pay. If it isn't allowed, you should get full pay (unless you agree to accept less).

If your employer lays you off without pay, and you feel they had no right to do this, or they fail to pay you Guarantee Pay, you can take the matter to an Employment Tribunal (Industrial Tribunal in Northern Ireland). Not paying you money you are due is classed as an unlawful deduction from wages.

Once you have been laid off for some time, consider whether you wish to leave and claim redundancy pay.

Where to get help

The Advisory, Conciliation and Arbitration Service (Acas) offers free, confidential and impartial advice on all employment rights issues. You can call the Acas helpline on 08457 47 47 47 from 8.00 am to 6.00 pm Monday to Friday.

The Labour Relations Agency (LRA) offers free, confidential and impartial advice on all employment rights issues for residents of Northern Ireland. You can contact the LRA on 028 9032 1442 from 9.00 am to 5.00 pm Monday to Friday.

Your local Citizens Advice Bureau (CAB) can provide free and impartial advice. You can find your local CAB office in the phone book or online.

If you are a member of a trade union, you can get help, advice and support from them.

More useful links

Temporary lay off: find out more

Additional links

Access keys