Lay-off is when an Employee does not receive any paid work for a temporary period. Lay-off, if unpaid, must be by agreement with the Employee and set out in the Contract of Employment. In the absence of such an agreement, an Employee may make a claim for unfair dismissal. If there is nothing in the Contract it must be amended accordingly if the Employee so agrees.
If work is not provided for any day then the Employee is entitled to Statutory Guarantee Payment. The maximum allowed is for 5 days in any 3 month period.
If an Employee is laid off for at least 4 consecutive weeks or a series of 6 or more weeks (with no more than 3 being consecutive) within a 13 week period then they can claim Redundancy and Statutory Redundancy Pay. They should give the Employer written notice of their intention to do so beforehand. This notice must be sent to the Employer within 4 weeks from the end of either: the 4 consecutive week period; or, the series of 6 or more weeks within the 13 week period.
If the Employer does not accept this he must serve a counter-notice on the Employee within 7 days of receiving the Employee’s notice. The basis for a counter-notice is that work will be available for the Employee within four weeks and this work must last for 13 weeks without any interruption.
PLEASE NOTE that a Deed of Variation is required in order to make changes to an Employment Contract. For a Deed of Variation please see Deed of Variation - Employment Contract.
Lay-off Documents - Employer Pack includes letters dealing with:
Notifying an Employee of a Lay-off period;
Making a change to Employment Contracts to allow for Lay-off;
Ending a Lay-off period; and
Serving a Counter Notice on the Employee upon receiving an Employee's notice to claim redundancy.